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Trump admin uncovers ‘staggering’ $8.6 billion in suspected California small business fraud

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Trump admin uncovers ‘staggering’ .6 billion in suspected California small business fraud

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The federal Small Business Administration suspended more than 111,000 California borrowers after uncovering $8.6 billion in suspected fraudulent activity linked to the COVID pandemic, SBA Administrator Kelly Loeffler announced Friday. 

“We have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,” Loeffler said in a press release on Friday. “This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years.”

The SBA reported that all in, it suspended 111,620 California borrowers who received 118,489 Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans, totaling $8.6 billion. 

THE BORDER GETS THE ATTENTION WHILE FRAUDULENT GOVERNMENT BENEFITS BLEED TAXPAYERS DRY

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The Small Business Administration announced the suspension of nearly 7,000 Minnesota borrowers after identifying hundreds of millions of dollars in suspected pandemic loan fraud. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

PPP loans were a COVID-era federal relief program that gave small businesses money to keep workers on the payroll, while EIDL loans are part of an SBA program that provides low-interest disaster relief loans to help businesses survive during times of diaster, including the pandemic. 

“Once again, the Trump SBA is taking decisive action to deliver accountability in a state whose unaccountable welfare policies have created a culture of fraud and abuse at the expense of law-abiding taxpayers and small business owners,” Loffler continued. 

CHILDCARE EXPERT EXPOSES KEY ROADBLOCK TO UNCOVERING POTENTIAL FRAUD SCHEMES IN MINNESOTA: ‘REALLY DIFFICULT’

The announcement follows California Attorney General Rob Bonta saying on Thursday that the Trump administration was promoting “baseless claims” of persistent fraud in the state. 

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California Attorney General Rob Bonta dismissed Trump administration claims of widespread fraud.  (Reuters/Fred Greaves/File Photo)

“Trump claims California is wasting money when, in reality, our programs are helping lower-income individuals and lower-income families get healthcare, food and housing assistance,” Bonta said on Thursday. 

“Trump claims, wrongly, California is perpetuating fraud when we are the victim,” he added. 

Bonta’s office noted that California has recovered nearly $2.7 billion in various fraud schemes across the last 10 years, “including by partnering with the federal government.” 

EXCLUSIVE: SENATE BILL TARGETS MINNESOTA-STYLE ‘RUNAWAY FRAUD’ TO FORCE SCAMMERS REPAY TAXPAYERS

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Fox News Digital reached out to Bonta’s office on Friday for additional comment. 

Newsom’s office directed Fox News Digital to the Governor Newsom Press Office X account, which mocked the SBA announcement. 

“OMG. The Trump Administration found MAJOR FRAUD in programs THEY control, Newsom’s Press Office’s X account posted, linking to a New York Post exclusive on the announcement. 

“The state has no role running / administering these programs.Were they hiding this??? California doesn’t hide fraud … we fight it. Nearly 1,000 arrests + over $125 billion STOPPED under @CAGovernor Gavin Newsom.”

Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

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Loeffler continued that the alleged California fraud comes after the SBA suspended 6,900 borrowers in Minnesota associated with 7,900 potentially fraudulent PPP and EIDL loans, which totaled roughly $400 million. 

“As we did in Minnesota, we are actively working with federal law enforcement to identify the criminals who defrauded American taxpayers, hold them to account, and recoup the stolen funds. As we continue our state-by-state work, our message is clear: pandemic-era fraudsters will not get a pass under this Administration,” Loeffler said, comparing California to its investigations in Minnesota. 

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Minnesota became ground zero for welfare and social services fraud surrounding the pandemic late in 2025, when investigators uncovered sweeping fraud schemes that could top $9 billion. 

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Alaska

Air Force’s Fightertown Alaska Plan Takes Shape

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Air Force’s Fightertown Alaska Plan Takes Shape


The U.S. military has released new details about the massive Fightertown Recapitalization (FTR) program at Joint Base Elmendorf-Richardson (JBER), in Anchorage, southeastern Alaska. This is a huge effort valued at approximately $7 billion that would effectively create an entirely new fighter hub to support future Air Force operations in the strategically important Arctic and Pacific regions.

The details emerged in a special notice announcing an upcoming virtual industry day, where government officials plan to brief contractors on the scope of the program and gather feedback on construction risks, industry capabilities, and acquisition strategies before moving toward a formal procurement process.

A U.S. Air Force F-22 Raptor from Joint Base Elmendorf-Richardson flies over the Joint Pacific Alaska Range Complex. U.S. Air Force photo by Staff Sgt. James Richardson

While the notice, from the U.S. Army Corps of Engineers, is intended primarily as market research, it offers one of the clearest looks yet at the scale and ambition of the Fightertown recapitalization effort.

According to the notice, existing airfield facilities cannot support the program’s requirements, prompting the selection of a new site to expand the current airfield infrastructure. Rather than a collection of isolated projects, the government describes the effort as a “complete campus approach” intended to synchronize facility construction with aircraft procurement, personnel movements, and logistical requirements.

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The envisioned campus would include aircraft hangars, squadron operations facilities, corrosion control facilities, maintenance shops, and other aviation support infrastructure. Extensive airfield improvements are also planned, including new taxiways, aprons, shoulders, and specialized aircraft operating surfaces.

A picture of a so-called “elephant walk” readiness exercise at Joint Base Elmendorf-Richardson showing 24 of the resident 3rd Wing’s F-22s, as well as a C-17 and an E-3. U.S. Air Force

Highly likely to be included in the recapitalization efforts will be measures to help reduce vulnerability and ensure critical operations could continue in wartime. After all, in a potential fight against China or Russia, JBER would be high on the list of priority targets in the opening phases of a large-scale conflict. As we have repeatedly outlined in the past, aircraft shelters with varying degrees of hardening are suddenly very much back on the agenda in response to growing drone and missile threats. 

Beyond flight-line infrastructure, the project encompasses a substantial support ecosystem. Plans call for a munitions complex, petroleum operations facilities, warehousing and supply functions, dining facilities, visitor control infrastructure, firefighting facilities, training centers, simulators, and housing for unaccompanied airmen.

The government also notes that the campus design remains flexible and could ultimately involve modifications to, or demolition of, existing facilities as planning progresses.

Rather than relying solely on traditional military construction contracting approaches, the Army Corps of Engineers says the program intends to leverage authorities provided in the Fiscal Year 2026 National Defense Authorization Act. Those authorities could allow the use of Other Transaction Authority (OTA), Progressive Design-Build (PDB), and other alternative execution methods.

The sprawling Joint Base Elmendorf-Richardson (JBER), in Anchorage, southeastern Alaska, as seen in a satellite image from May of this year. Google Earth

The notice explicitly states that the government intends to capitalize on private-sector innovation while avoiding what it describes as costly and time-consuming federal contracting burdens. It also emphasizes that the execution strategy will encourage industry partners to propose novel technical and construction solutions.

The scale of the investment underscores Alaska’s growing importance as a hub for U.S. airpower. JBER already serves as one of the Air Force’s premier fighter installations and occupies a critical geographic position between North America, the Arctic, a part of the world that has only grown in strategic significance in recent years, and the Indo-Pacific theater, where strategic planning is highly focused on a potential future conflict with China.

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Joint Base Elmendorf-Richardson hosts the headquarters of the 11th Air Force, the service’s top command in Alaska, and its 3rd Wing, which operates a mix of F-22 Raptor stealth fighters, E-3 Sentry Airborne Warning Control System (AWACS) radar planes, C-17 Globemaster III airlifters, and C-12 light utility aircraft. It is also home to the Alaska Air National Guard’s 176th Wing, which has additional C-17s, as well as HC-130 Combat King rescue aircraft and HH-60 rescue helicopters.

U.S. Air Force HH-60W Jolly Green II helicopter aircrew assigned to the 210th Rescue Squadron, 176th Wing, Alaska Air National Guard, hoist a simulated downed pilot during a full mission profile training exercise at Malemute Drop Zone, Joint Base Elmendorf-Richardson, Alaska, March 31, 2026. The training included search and rescue, high-altitude parachute drops, emergency medical response, personnel recovery, and rescue hoist. Participants included HH-60W Jolly Green II aircrew of the 210th RQS, HC-130J Combat King II aircrew of the 211th RQS, and pararescuemen, and combat rescue officers of the 212th RQS. The three squadrons compose the 176th Wing’s Rescue Triad and are among the busiest search and rescue units in the Department of War. (Alaska National Guard photo by Alejandro Peña)
HH-60W Jolly Green II helicopter aircrew assigned to the 210th Rescue Squadron, 176th Wing, Alaska Air National Guard, hoist a simulated downed pilot during a full mission profile training exercise at Malemute Drop Zone, Joint Base Elmendorf-Richardson, Alaska, March 31, 2026. Alaska National Guard photo by Alejandro Peña

In addition, in 2023, the Air Force announced the creation of the 55th Operations Group, Detachment 1 at the base, as a detachment of the 55th Wing at Offutt Air Force Base in Nebraska.

“The new detachment will… serve as a strategic launch and recovery point for RC-135V/W Rivet Joint operations and exercises in the region,” according to the Air Force.

The move reflected increased demand for RC-135V/W Rivet Joint spy plane sorties in the Pacific, with JBER being well-positioned for these aircraft to gather intelligence on areas of interest in the northern end of the Pacific and the increasingly strategic Arctic region.

The arrival of the Rivet Joint prompted a previous reconstruction effort at JBER. In what the Air Force described as a “mega-project,” one of the two runways there was extended to help it better support operations involving larger aircraft like these.

A satellite image of Elmendorf Air Force Base taken in July 2023. Evidence of the runway extension “mega-project” is plainly visible at the northeastern end of the base. You can see an RC-135 Rivet Joint sitting on the southwest ramp area as well. PHOTO © 2023 PLANET LABS INC. ALL RIGHTS RESERVED. REPRINTED BY PERMISSION

In the future, the strategic location of JBER, as well as its current status as one of the few F-22 bases, suggests that it could well eventually host the F-47 sixth-generation stealth fighter, the first of which is expected to make its first flight sometime in 2028. The F-47 could therefore well end up as the centerpiece of the Alaskan Fightertown, in keeping with the vision for the jet serving as a critical force multiplier that can bring together other crewed and uncrewed assets. With that in mind, at least some of the Fightertown Recapitalization program may be specifically tailored to the requirements of the F-47.

Importantly, JBER also serves as the focal point for the Red Flag-Alaska and Northern Edge exercises.

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The Red Flag-Alaska exercises can take place up to four times a year and mirror those flown over the Nellis Range Complex in Nevada, with some differences. Namely, the ranges in Alaska, many of which are instrumented, are enormous, and can include a more varied array of assets.

A U.S. Air Force E-3 Sentry starts takeoff for a flight during exercise Red Flag Alaska 26-1 at Joint Base Elmendorf-Richardson, Alaska, April 29, 2026. The E-3 provides advanced information-collection capabilities, which enable the U.S. and allies to make combat-credible decisions in the Indo-Pacific to deter aggression and provide insights in homeland-defense missions. (U.S. Air Force photo by Tech. Sgt. Joseph Miller)
A U.S. Air Force E-3 Sentry takes off during exercise Red Flag Alaska 26-1 at Joint Base Elmendorf-Richardson, Alaska, April 29, 2026. U.S. Air Force photo by Tech. Sgt. Joseph Miller

From JBER and other bases in the region, Red Flag-Alaska participants have access to the Joint Pacific Alaska Range Complex (JPARC). Covering an area of more than 67,000 square miles and providing 77,000 square miles of airspace above, JPARC is the “largest instrumented air, ground and electronic combat training range in the world,” according to the Air Force. It is regularly used to provide a realistic training environment for full-spectrum engagements, ranging from individual skills to large-scale joint engagements.

JPARC’s role could grow further in the coming years as the Air Force pushes large-scale exercises further and further out into the broad expanses of the Pacific. Other range complexes further down along the West Coast are seeing increasing use, as well. Even very large overland ranges, such as the sprawling Nevada Test and Training Range (NTTR) adjacent to Nellis Air Force Base, are increasingly constrained when attempting to replicate modern scenarios based on ever-growing adversary anti-access and aerial denial (A2/AD) bubbles.

Meanwhile, Northern Edge also occurs in and around Alaska every two years, with these large-scale events being used to test and evaluate new systems and capabilities from across the U.S. military.

One of the Air Force’s tiny force of semi-retired F-117 Nighthawk stealth jets, now used for test and evaluation purposes, at Elmendorf during Northern Edge 2023. U.S. Air Force

In the past, the Air Force has described Northern Edge as a demonstration of “the U.S. commitment to the region by building interoperability, advancing common interests and a commitment to our allies and partners in ensuring a free and open Indo-Pacific,” as well as showcasing U.S. ability to defend the homeland from and throughout Alaska.

As planning advances, we will learn more about what this new Alaskan Fightertown will look like. What is already clear is that the Air Force and the Pentagon are preparing for a long-term expansion and modernization effort on a scale rarely seen at an operational fighter base.

More details could emerge during the industry day scheduled for June 30, when government officials will provide a comprehensive update on the program and solicit feedback from industry partners on how to execute one of the Air Force’s biggest military infrastructure projects.

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Update: 3:45 PM ET –

“We are deliberately investing in Pacific Air Force’s critical infrastructure by replacing and upgrading operations and maintenance facilities in addition to making repairs to existing buildings and funding mission-ready materiel, storage, and sustainment necessary for homeland defense and Agile Combat Employment operations,” a U.S. Air Force official has now told us in response to our queries for more information about the Fightertown plan. “We are also extending the runway and building a Joint Integrated Test and Training Center at JBER.”

“We are in the design stage now and will have a better idea of timelines once we receive an appropriation,” they added.

Contact the author: thomas@thewarzone.com

Thomas Newdick is a staff writer at TWZ, where he covers military aviation, defense technology, weapons systems, and international security. Based in Berlin, Germany, he reports on conflicts, military modernization efforts, and emerging aerospace technologies around the world, with a particular interest in airpower and its role in contemporary warfare. His reporting is informed by deep expertise in modern and historical airpower, particularly in Europe, with a focus on military aviation, air campaigns, and aerospace developments across the continent and beyond.

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Arizona

Arizona man convicted for role in bringing cocaine to Cincinnati, other US locations for over 5 years

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Arizona man convicted for role in bringing cocaine to Cincinnati, other US locations for over 5 years


CINCINNATI — An Arizona man has been found guilty of supplying dozens of kilograms of cocaine to multiple U.S. locations, including Cincinnati, bi-weekly for more than five years.

Tucson resident Cesar Cervantes, 52, was convicted of participating in drug trafficking and money laundering conspiracies in a jury trial after the government seized more than 160 kilograms of cocaine, three kilograms of fentanyl and $1.4 million in cash from him.

According to court documents, Cervantes would use a network to deliver drugs that originated in Mexico to multiple locations across the country, including designated couriers in Cincinnati, between at least July 2018 and August 2023. Officials said he would supply between 25 and 50 kilograms biweekly to his coconspirators.

Cervantes would then use money launderers to funnel money back to Mexico. In one instance, court documents said he had coconspirators deliver around $300,000 to two separate money launderers — one based in China and another in Colombia.

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The jury found Cervantes guilty on all counts for his role in the conspiracies following a trial before U.S. District Judge Matthew W. McFarland in the Southern District of Ohio. He faces at least 10 years and up to life in prison.





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California

Opinion: California is about to get a windfall. Let’s not blow it.

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Opinion: California is about to get a windfall. Let’s not blow it.


The IPOs of SpaceX, OpenAI and Anthropic could deliver billions of dollars to California’s coffers.

We’ve seen this movie before.

In 2022, California recorded a nearly $100 billion surplus, saved just $10 billion in its rainy day fund and then spent the rest. Two years later, a $56 billion deficit loomed.

Now, with the state facing ongoing operating deficits of more than $10 billion, we’re back in familiar territory.

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