President Donald Trump announced Tuesday that a federal investigation into alleged fraud in California has begun, signaling an expansion of the administration’s scrutiny of potential misuse of public funds in state-run social programs.
In a post on Truth Social, Trump criticized California’s leadership while confirming the launch of the probe. “California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible,” Trump wrote, referring to Gavin Newsom using a derogatory nickname. “The fraud investigation of California has begun.” The president did not provide specific details about the scope or targets of the investigation. However, the announcement came less than a day after the administration ordered a suspension of federal childcare payments to Minnesota following allegations that operators tied to Somali-run daycare and healthcare organizations improperly obtained more than $9 billion in taxpayer funds. Trump’s statement marks the first time California has been formally connected to the federal government’s expanding review of suspected fraud within social welfare programs. The move follows recent warnings from the president directed at several Democratic governors whom he has accused of failing to properly oversee public assistance systems.
On Monday, Trump sharply criticized Tim Walz, stating that the governor had “destroyed Minnesota.” He also argued that leaders including J. B. Pritzker and Kathy Hochul had performed “an even more dishonest and incompetent job” in managing their states. Federal officials have not yet released detailed information about the California investigation. However, multiple law enforcement and oversight agencies have reportedly been mobilized following a nationwide anti-fraud initiative announced by the U.S. Department of Health and Human Services. Deputy Secretary Jim O’Neill confirmed Tuesday that the department has “turned off the money spigot” to Minnesota and implemented new verification measures nationwide aimed at preventing further misuse of federal funds.
