Politics
Real, fake or overblown? Sorting fact from fiction in fraud allegations surrounding Newsom, California
SACRAMENTO — The year opened with President Trump declaring that “the fraud investigation of California has begun,” a move that quickly set off a barrage of allegations from his administration and Republican allies questioning the integrity of state programs and the leadership of Gov. Gavin Newsom.
The accusations, amplified across social media and conservative outlets, have pushed California and its Democratic leadership to the center of a broader national political fight over waste, fraud and abuse.
Newsom has dismissed the claims as politically driven, arguing that the administration is singling out Democratic-led states while ignoring similar problems elsewhere. The governor also responded by highlighting fraud cases in Republican-led states and by criticizing Trump’s own record and business dealings.
Against that backdrop, it has become increasingly difficult to separate substantiated fraud from fabricated or recycled claims, to distinguish old findings from newly raised allegations and to determine who can credibly claim credit for uncovering wrongdoing — all amid a toxic and deeply polarized political climate.
Dan Schnur, who teaches political communications at USC and UC Berkeley, said allegations of malfeasance in California is a particularly ripe target for Republicans because Democrats have controlled the state Legislature and governor’s office for years.
Democrats hold a supermajority in both the Assembly and the Senate, meaning they hold at least two-thirds of seats in both houses, and not a single Republican has been elected to statewide office in California since 2006, when Gov. Arnold Schwarzenegger and Insurance Commissioner Steve Poizner were reelected.
“There is no shared responsibility here for Republicans,” Schnur said. “If you had a state in which Republicans were actually competitive, they would bear some responsibility for these problems.”
Audits and prosecutions show that California has experienced its share of fraud, particularly in complex programs involving emergency aid, healthcare and unemployment insurance. The state paid out billions of dollars in fraudulent unemployment claims during the COVID-19 pandemic, and the California State Auditor has issued repeated warnings about state agencies that are “at high risk for waste, fraud, abuse, or mismanagement.”
Along with recycling a barrage of years-old allegations of financial malfeasance in California and other Democratic states, the Trump administration elevated claims of child-care fraud in Minnesota last month, prompting Gov. Tim Walz to drop his reelection plans to focus on the growing political crisis in his state.
Fraud allegations are increasingly being deployed as a political weapon against Newsom, a leading Trump critic and a potential 2028 Democratic presidential contender. Politicians have always railed against government waste, fraud and abuse, but now those issues are being “weaponized into a partisan issue,” Schnur said.
For the public, it can be hard to discern the truth. Here is a look at three of the central fraud allegations — and what the evidence shows.
Child-care funding
President Trump used his social media platform, Truth Social, to accuse California of widespread fraud last month, drawing a link between his administration’s investigation into child-care spending in Minnesota and programs in the Golden State, and announcing a major federal “fraud investigation” into the state’s actions.
“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible???” wrote Trump, using a disparaging nickname for the governor.
The Trump administration then moved to freeze $10 billion in federal funding for child care in five Democrat-led states — California, New York, Colorado, Illinois and Minnesota — over “serious concerns about widespread fraud and misuse of taxpayer dollars.”
In a trio of Jan. 6 letters addressed to Newsom, the U.S. Department of Health and Human Services said it was concerned there had been “potential for extensive and systemic fraud” in child care and other social services programs that rely on federal funding, and had “reason to believe” that the state was “illicitly providing illegal aliens” with benefits.
The letters did not detail evidence to support the claims. The governor’s office dismissed the accusation as “deranged.”
A federal judge subsequently blocked the Trump administration temporarily from freezing those funds. In that ruling, U.S. District Judge Vernon Broderick said he didn’t understand why the government was making it harder for states to access child-care money before any wrongdoing had been discovered.
“It just seems like the cart before the horse,” he said.
Hospice funding
Days after Trump’s social media post about alleged corruption under Newsom’s watch, Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, and Bill Essayli, the top federal prosecutor in Los Angeles, held a joint news conference on public benefits fraud, but offered few details about the scope of their investigation.
The officials accused “foreign actors” of draining billions from public healthcare programs in California, referencing bogus hospice providers first exposed by The Times in 2020 and later investigated by California Atty. Gen. Rob Bonta.
Essayli placed the blame for bad actors squarely on Newsom, calling him “the fraud king.”
Weeks later, Oz released a video of himself walking in the Los Angeles neighborhood of Van Nuys as he questioned why dozens of alleged hospices were operating along four blocks. He blamed the “Russian Armenian Mafia” and made his remarks while pointing to an Armenian bakery, prompting accusations of racism from the Armenian community.
Newsom’s office last week hit back by highlighting state efforts to fight fraud, while pointing to a 2025 Axios story on the Trump administration’s decision to pause a federal program to crack down on bad hospice operators.
Bonta’s office said it has filed criminal charges against 109 individuals over hospice fraud-related offenses and launched dozens of civil investigations.
Newsom, speaking at a Bloomberg event Thursday in San Francisco, said the allegations have been recycled and misrepresented. Later that day, he filed a civil rights complaint against “baseless and racist allegations against Armenian Americans in California” made by Oz.
“Hospice, we’ve been after that for years and years before Oz was even on the scene,” Newsom said. “In 2021, we did a moratorium on new hospice programs, 280 we shuttered.”
The Center for Medicare & Medicaid Services said earlier this year that — in addition to California — Arizona, Nevada, Texas, Ohio and Georgia are being monitored following allegations of fraud and waste.
EDD fraud
The state’s Employment Development Department, known as EDD, reported in 2021 that approximately $20 billion was lost due to fraud, largely in the federal Pandemic Unemployment Assistance (PUA) program.
While unemployment fraud was rampant across country during the pandemic as governments rushed to provide support, California’s problems stood out.
The state itself admitted in 2021 that it failed to take precautions that had been implemented in other states, including using software to identify suspicious applications and cross-checking benefit claims against personal data on state prison inmates.
Rep. Kevin Kiley (R-Rocklin) said department mismanagement and fraud often overlap and cited EDD as a prime example.
“When there is a lack of internal controls, a lack of diligence of how funds are used, that makes it easier for those who want to take advantage of the system to profit,” Kiley said.
EDD’s own tracker said the state has recovered more than $6 billion in stolen funds and opened more than 2,300 unemployment fraud investigations since the pandemic began, leading to nearly 1,000 arrests and more than 670 convictions.
The department said it has expanded fraud enforcement through partnerships with law enforcement, new identity-verification technology and a dedicated fraud task force.
But, reports of mismanagement at EDD have continued. A recent audit also found EDD wasted $4.6 million by paying monthly service fees for more than 6,200 cellphones that went unused for at least four consecutive months between November 2020 and April 2025 — including some devices that were inactive for more than four years.
At the same time, “EDD continues to have high rates of improper [unemployed insured] payments, including fraudulent payments, and it needs to improve the customer service it provides to UI claimants,” another report found.
What’s next?
Newsom said there is a reason the Trump administration is not pointing to fraud in Republican-led states.
“This is about polarization, politicalization, weaponization,” Newsom said Thursday.
Asked what the Trump administration will discover in probing California for fraud, Newsom said investigators will find a state “taking that issue very, very seriously.”
“We absolutely are here to be a partner, to go after waste, fraud and abuse,” Newsom said.
State audits show vulnerabilities persist. The California State Auditor has repeatedly flagged Medi-Cal eligibility discrepancies that have exposed the state to billions of dollars in questionable payments, while also warning that weaknesses in information security across state agencies remain a high-risk issue.
Curtailing waste could be particularly important during the upcoming year as California and its state-funded programs head into a period of volatile fiscal uncertainty, driven largely by events in Washington and on Wall Street. Newsom’s own optimistic budget proposal projects a $3-billion state deficit for the next fiscal year despite no major new spending initiatives.
The nonpartisan Legislative Analyst’s Office warned in November that California faces a nearly $18-billion budget shortfall.
It will also be a key issue in upcoming elections. A group of Republicans running for statewide offices, including California gubernatorial candidate Steve Hilton, pegged that the state’s annual estimate of fraud, waste and abuse across state programs at $250 billion, an estimate that includes unverified public tips submitted to a campaign-run website.
The group cited the estimate as justification for creating their own “California Department of Government Efficiency,” or CAL DOGE, a nod to a similarly named federal initiative promoted by Elon Musk that generated headlines but has not produced documented savings or formal audit findings. CAL DOGE is not currently a state department, despite its name.
Who deserves credit when fraud is prosecuted has also become a point of contention. After a man was arrested last month for fleecing L.A.’s homeless services program for $23 million, critics of Newsom were quick to blame the governor. Newsom responded by saying the case was uncovered by local investigators working with law enforcement, which he added is “exactly the kind of accountability and oversight the state has pushed for.” (The Los Angeles district attorney’s office ran a parallel, independent investigation.)
Essayli responded on social media by saying no one made an arrest until Trump and Atty. Gen. Pam Bondi “appointed me to investigate and charge fraud offenses in California.”
Kiley, the California Republican congressman, said despite the partisan fighting over fraud, the issue should rally both parties.
The “easiest” way to solve the state’s budget problems and improve government services for taxpayers is to “minimize and eventually eliminate fraud,” said Kiley.
Politics
Video: President Trump Makes Contradictory Statements About Strategy for War in Iran
new video loaded: President Trump Makes Contradictory Statements About Strategy for War in Iran
transcript
transcript
President Trump Makes Contradictory Statements About Strategy for War in Iran
Since launching the war in Iran on Feb. 28, President Trump has altered his position on regime change and shifted the timeline of operations.
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Regime change was not one of the things I had as a goal. I had one goal. They will have no nuclear weapon. And that goal has been attained. They will not have nuclear. And we’re going to try to get people that are going to run it well, and it’s going to be a prosperous, wonderful place. It used to be to the great, proud people of Iran, when we are finished, take over your government. It will be yours to take. We never said regime change, but regime change has occurred. And we have. From the beginning, we projected four to five weeks on Iran. You called it an excursion. You said it would be over soon. Are you thinking this week it will be over. No, but some days I think so. And very soon the war is going to be over in three days. My prediction. It turns out we are going to hit them extremely hard over the next two to three weeks.
By McKinnon de Kuyper and Zach Wasser
April 3, 2026
Politics
Nebraska Senate candidate restructures campaign after complaint over payments to family: report
Democrats unveil new 2028 election playbook
After 2024 losses, Democrats unveil a 2028 playbook focused on voter connection, progressive policies and wealth taxes. Bernie Sanders senior advisor Faiz Shakir and Fox News contributor Karl Rove debate the agenda’s viability for future elections.
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U.S. Senate candidate in Nebraska Dan Osborn is reportedly restructuring his campaign following complaints he has been improperly steering funds for personal use to his relatives, including his wife, who, a complaint with the Federal Election Commission (FEC) alleges received funds illegally via the Osborn campaign, a web of political action committees and consulting firms.
While paying family members is not illegal under federal election law, there are certain guidelines that must be followed, including that the services rendered are bona fide campaign services, and that they are paid at fair-market value. Fox News Digital reported last month that conservative watchdog Americans for Public Trust filed a complaint with federal election officials alleging the Osborn campaign and two political action committees were engaging in an illegal “scheme” to pay nearly half-a-dozen of his relatives.
Osborn’s wife was among the relatives at the center of the complaint, having been paid hundreds of thousands of dollars from her husband’s campaigns and his affiliated PACs, both directly and via two political consulting firms she was working for, or had an ownership stake in, according to the complaint. But, on Thursday, Osborn and his wife informed the Omaha-World Herald that she would be stepping away from her roles with the two consulting firms and would be joining her husband’s campaign as its full-time operations manager.
U.S. Senate candidate Dan Osborn speaks during his campaign stop at Sly’s Family Bar and Grill in Neligh, Neb. (Bill Clark/CQ-Roll Call, Inc. via Getty Images)
FEDERAL ELECTION COMPLAINT ALLEGES AOC MISUSED CAMPAIGN FUNDS FOR PSYCHIATRIST SERVICES
“I am not going to let Pete and his cronies dictate who runs my campaign,” Osborn told the Omaha-World Herald. “No one works harder than my wife. Along with running our household and raising our kids, she has been instrumental in running my campaign.”
In a statement to Fox News Digital, campaign spokesperson John Dolan called the concerns about Osborn’s campaign spending “a joke.”
“Why is a billionaire like Pete Ricketts so afraid of a mechanic?” Dolan questioned, referring to incumbent GOP Nebraska Sen. Pete Ricketts, whom Osborn is challenging. “Ricketts and his allies are doing what they always do: throwing mud to distract voters from the fact that they’re getting rich while bankrupting the country.”
Osborn has been steadfast that his wife, reportedly a former bar manager, has been an instrumental part of his campaign and that payments have been in line with fair-market value rates. In some cases, Megan has gotten money directly from her husband’s campaign, and in other cases she has received it from two firms, one called Independent Campaigns LLC, which Megan has a one-third ownership stake in, and Dark Forest LLC, which official candidate disclosures show Megan gets compensation from. The firms were being paid for campaign services as well.
Just two days after Independent Campaigns was set up, Osborn’s Working Class Heroes Fund (WCHF) made its first $50,000 payment to the firm, according to the Lincoln-Journal Star. Per Americans for Public Trust’s FEC complaint, Independent Campaigns has received nearly $200,000 from Osborn’s principal campaign, WCHF and another PAC called the League of Labor Voters (LLV), which Americans for Public Trust also alleges is controlled by Osborn.
In total, per the Americans for Public Trust complaint letter, Osborn’s wife has been able to rake in close to $300,000 for herself for things like “strategy consulting” and work reimbursements.
OMAR CALLS GOP PROBE INTO HUSBAND’S $30M BUSINESS SURGE A ‘POLITICAL STUNT’ AS RECORDS DEADLINE PASSES
Meanwhile, the complaint against Osborn’s campaign also includes payments made to two of Osborn’s sisters-in-law, his brother-in-law and his daughter.
Placards for U.S. Senate candidate Dan Osborn are seen as he speaks during his campaign stop at the Handlebend coffee shop in O’Neill, Neb. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
Osborn’s daughter, Georgia, a part-time dancer who Osborn says still needs help paying her bills, was given $4,200 from Osborn’s first failed campaign that was defunct at the time. The payment came between when Osborn’s first 2024 campaign lost and before launching his 2026 bid. The money was for “assistant services” from the then-dormant campaign.
“Perhaps the Osborn family is teeming with previously undiscovered, dynastic political talent, akin to the Kennedys or Roosevelts,” states the Americans for Public Trust complaint to the FEC. “Or perhaps Mr. Osborn has realized his ability to funnel large amounts of unchecked campaign cash to his own family.”
Independent Senate candidate Dan Osborn chats with attendees after speaking during his campaign stop at the Handlebend coffee shop in O’Neill, Neb., on Oct. 14, 2024. (Bill Clark/CQ-Roll Call, Inc. via Getty Images)
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According to the Omaha-World Herald, Osborn’s wife will not only no longer be working for the consulting firms she was with previously, but would also be divesting her stake in Independent Campaigns. The outlet also reported that Osborn and his wife indicated she would be paid a salary of $8,000 per month, which is slightly lower than the $9,000 per month that Osborn said his wife was making from multiple income sources prior to beginning work with her husband’s first failed campaign in 2024.
“Dan Osborn only restructured how he pays his wife after we filed a complaint with the FEC that he was running afoul of campaign finance laws,” Caitlin Sutherland, executive director of Americans for Public Trust, told Fox News Digital on Friday. “However, questions still remain regarding his payments to his daughter, his brother-in-law, and two sisters-in-law, and his control over two federal PACs. Rest assured, Osborn may have changed tactics, but he isn’t off the hook in his attempt to funnel campaign cash to his entire family.”
Osborn, who is running as an Independent, has also been criticized for his affiliations with Democrats despite committing to not caucusing with either major party if elected. Osborn is looking to unseat incumbent Sen. Pete Ricketts, R-Neb., after losing his 2024 challenge against Sen. Deb Fischer, R-Neb.
Politics
U.S. rescues pilot who ejected after fighter jet was shot down by Iran, officials say
WASHINGTON — A crew member was rescued after an American aircraft went down Friday in Iran, the Associated Press reported, citing U.S. and Israeli officials.
U.S. forces launched a rescue mission in southwestern Iran after at least one American crew member ejected from a fighter jet downed by Iranian defenses, according to a U.S. official and news outlets.
The downing of the jet, an F-15E, was confirmed to The Times by a U.S. official who was not authorized to speak publicly. That type of jet reportedly carries a standard crew of two, but it was not clear if more than one crew member ejected.
Defense Secretary Pete Hegseth has maintained for weeks that the U.S. has “complete, uncontested control of Iranian airspace” after destroying the country’s air defenses.
“Iran has no air defenses, Iran has no air force,” he said at a March 13 Pentagon news conference. “Today, as we speak, we fly over the top of Iran and Tehran, fighters and bombers all day, picking targets as they choose, as our intelligence gets better and better and more refined.”
But the Islamic Revolutionary Guard Corps claimed that a new type of Iranian air defense system deployed for the first time in recent days had shot down a warplane on Friday.
The statements stirred a flurry of conflicting instructions from Iranian state-affiliated broadcasters. One local television channel initially encouraged viewers to search for the downed pilot and “shoot them as soon as you see them.”
It then changed the instructions, according to the Associated Press, after local police issued a statement asking the public to capture and turn in American pilots alive to security agencies to “receive a precious prize.”
On social media, Iranian accounts posted videos purporting to show helicopters searching for downed pilots in Iran’s western and southern provinces, according to a report from Fars News.
Fars also reported officials in Iran’s southwest were offering a “valuable reward” to anyone “who captures the American pilot alive.”
Images of a tail section posted on social media had markings indicating it was from the 48th Fighter Wing, which is based at RAF Lakenheath in the United Kingdom, according to Peter Layton, a visiting fellow at the Griffith Asia Institute in Australia, in an interview with NBC News.
U.S. and Israel escalate attacks on infrastructure
The development came as U.S. and Israeli forces escalated attacks on civilian sites and key infrastructure across Iran Friday, including strikes on residential buildings, health centers and Iran’s largest bridge, with President Trump warning that the U.S. “hasn’t even started destroying what’s left in Iran.”
On his social media, the president posted dramatic images of the smoldering B1 bridge, a towering cable-suspended viaduct that was severed in U.S.-Israel strikes late Thursday.
“The biggest bridge in Iran comes tumbling down, never to be used again — Much more to follow!” Trump wrote.
Connecting Tehran to the city of Karaj, the $400-million bridge was Iran’s largest, and was often regarded as one of the most prominent, expensive and complex engineering endeavors in the Middle East.
Iranian Foreign Ministry spokesperson Esmail Baghaei labeled the attack a “war crime in the style of ISIS terrorism.” Foreign Minister Seyed Abbas Araghchi called the act a sign of moral collapse by “an enemy in disarray,” stating that such actions will not compel Iranians to surrender.
“Every bridge and building will be built back stronger. What will never recover: damage to America’s standing.”
The attacks come after Trump announced what he described as a two- to three-day “off-ramp” from hostilities, while simultaneously warning he would bring Iran “back to the Stone Ages” if it didn’t cede to U.S. demands.
Reports from Iranian state media and international monitoring groups indicate strikes have also hit homes, religious centers, universities and municipal infrastructure across multiple provinces, raising concerns among humanitarian organizations about the widening scope of targets.
World Health Organization Director-General Tedros Adhanom Ghebreyesus said Friday that the U.S. and Israel have carried out routine attacks on Iranian healthcare facilities since March 1.
“WHO has verified over 20 attacks on health care in Iran, resulting in at least nine deaths, including that of an infectious diseases health worker and a member of the Iranian Red Crescent Society,” Tedros wrote on X.
Iran’s health ministry estimated about 2,076 people have been killed and 26,500 wounded by U.S.-Israeli attacks since fighting broke out Feb. 28. An estimated 1,300 have been killed in Lebanon, according to its health ministry, while more than two dozen people have died in Gulf states and the occupied West Bank.
Thirteen U.S. service members have been killed, and 19 Israeli service members have been reported dead in a five-week-old war that has triggered growing unease stateside.
A recent Pew Research Center survey conducted in late March found that most Americans opposed direct U.S. military involvement in a war with Iran. A separate Gallup poll reported declining approval for the administration’s handling of foreign policy.
Lawmakers in both parties have raised concerns about Israel’s influence in the Trump administration’s decision to enter a lengthy conflict, stoking debates over military aid and executive war powers.
Rep. Alexandria Ocasio-Cortez (D-N.Y.) said Wednesday that she plans to oppose future military aid to Israel, including for its Iron Dome defense systems. She argued that the Israeli government recently funded a $45-billion defense budget and is “well able” to bankroll its war without U.S. help.
“I will not support Congress sending more taxpayer dollars and military aid to a government that consistently ignores international law and U.S. law,” she said on X.
Iran hit desalination plant and oil refinery
Iran returned fire, again aiming at infrastructure targets operated by its Gulf neighbors. A series of airstrikes set Kuwait’s Mina al-Ahmadi oil refinery on fire, the Associated Press reported, as Kuwaiti firefighters were working to knock down several blazes there.
Kuwait also reported that an Iranian attack significantly damaged a desalination plant, which supplies drinking water to the region.
Bahrain, Saudi Arabia and Israel all scrambled to intercept incoming Iranian missiles Friday, according to reports, despite the Pentagon’s assurances that Iran’s military facilities and missile capacity have been largely wiped out.
Meanwhile, the United Arab Emirates shut down a gas field after a missile interception reportedly rained debris on it and started a fire, the Associated Press reported.
The war has pushed Iran to tighten its grip over the Strait of Hormuz, sending oil prices soaring 50%, upending stock markets, and stirring supply chain disruptions that threaten to destabilize global food markets.
Americans felt the oil rally again this week, after Trump’s Wednesday address dashed investors’ hopes of a swift end to the conflict, sending U.S. crude prices up 11% Thursday and another half point on Friday.
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