Trump Starts California Fraud Investigation, Newsom’s Response Is Pathetic

Trump Starts California Fraud Investigation, Newsom’s Response Is Pathetic

Gavin Newsom said bring it on.

Asked about potential federal fraud investigations into California, the governor put on his tough-guy act: “If you think for a second anyone countenances fraud… I look forward to partnering with them.”

Then Trump announced the investigation had begun.

Newsom’s office responded with… well, let’s just say the partnership offer expired quickly.

The Meltdown

Here’s the official statement from Newsom’s office — yes, the actual official statement:

“HAHAHAHA. Donald Trump is a deranged, habitual liar whose relationship with reality ended years ago. This is not complicated. He spends his days posting whatever garbage his shriveled little brain can cough up — and Fox News dutifully treats it like the Lord’s scripture.”

It continued: “Gavin Newsom runs a state. Donald Trump runs his mouth and little fingers.”

This is how California’s governor responds to a federal fraud investigation. With “HAHAHAHA” and insults about the president’s brain and fingers.

Very gubernatorial.

From “Bring It On” to “HAHAHAHA”

The whiplash is remarkable.

Monday: Newsom tells MSNBC he “can’t stand fraud” and “welcomes” any investigation. He positions himself as the reasonable adult who’d happily cooperate with legitimate oversight.

Tuesday: Trump announces the investigation has begun.

Also Tuesday: Newsom’s office releases a statement that reads like it was written by a college sophomore having a Twitter meltdown.

The shift from “I look forward to partnering” to “shriveled little brain” took approximately 24 hours.

Almost like Newsom was bluffing and got called.

The Numbers Don’t Lie

Here’s why Newsom is panicking: California’s fraud and waste problems are genuinely massive.

$32.6 billion in pandemic unemployment assistance fraud — much of it paid to prisoners, foreign nationals, and people who didn’t exist.

$24 billion spent on homelessness since 2019 — while the homeless population continued to grow.

$16 billion sunk into a high-speed rail project that’s nowhere near completion and may never be finished.

Budget deficits for three straight fiscal cycles: $27 billion, $55 billion, and $15 billion.

And California’s own Legislative Analyst’s Office admitted it “botched” its deficit estimate by $5 billion. They literally can’t count their own money accurately.

This is the state Newsom claims to “run.” These are the numbers he’ll have to explain.

Minnesota Was Just the Appetizer

The California investigation follows the same pattern that exposed Minnesota.

Independent journalist Nick Shirley posts videos showing empty facilities that received millions in funding. Federal investigators start asking questions. Payments get frozen. Politicians who claimed everything was fine suddenly have to answer for years of neglect.

Tim Walz just dropped out of his re-election race over Minnesota’s fraud scandal.

Newsom is watching that and seeing his own future. The bravado about “welcoming” investigations was a front. The panicked, juvenile response to Trump’s announcement is the reality.

The HHS Freeze

The Department of Health and Human Services already froze child care payments to Minnesota.

Now California, New York, Illinois, and Colorado are potentially next. The frozen funding would include billions from the Temporary Assistance for Needy Families program, the Child Care Development Fund, and social services grants.

That’s not a slap on the wrist. That’s a financial earthquake for states dependent on federal dollars.

Newsom can post “HAHAHAHA” all he wants. His budget office isn’t laughing.

The $125 Billion Claim

Newsom’s statement claimed he’s “blocked over $125 BILLION in fraud” since taking office.

If that number is real — and it’s suspiciously round — it raises an obvious question: where was $125 billion in fraud coming from in the first place?

Either California’s government was so riddled with fraud that blocking $125 billion still left massive problems, or the number is inflated nonsense designed to make Newsom look proactive.

Neither explanation is flattering.

What Investigators Will Find

When federal investigators start digging into California, they’ll find the same patterns seen everywhere else.

Programs that exist on paper but not in reality. Facilities billing for services never rendered. Oversight agencies that looked the other way. Politicians who prioritized political relationships over accountability.

The EDD unemployment fraud alone is a scandal that would end careers in any normal political environment. The homelessness spending produces no visible results. The high-speed rail is a monument to waste.

And that’s just what’s publicly known. Actual forensic investigation tends to uncover much more.

The Deflection Strategy

Notice what Newsom’s statement tried to do: pivot to attacking Trump.

Don’t talk about California’s fraud — talk about Trump being “deranged.”

Don’t address the unemployment billions — attack Trump’s “shriveled little brain.”

Don’t explain the homeless spending — insult his “little fingers.”

It’s the political equivalent of a child caught with his hand in the cookie jar screaming “you’re stupid!” at his parents.

The deflection might work on MSNBC audiences. It won’t work on federal investigators with subpoena power.

Tim Walz 2.0?

The parallels to Minnesota are striking.

Walz initially dismissed fraud concerns as politically motivated attacks. He called Nick Shirley a “delusional conspiracy theorist.” He claimed his administration had been fighting fraud for years.

Then the investigation expanded. The evidence mounted. The political pressure became unbearable.

Now Walz is dropping out of his re-election race in disgrace.

Newsom is following the same playbook: deny, deflect, attack the investigators. It didn’t work for Walz. It probably won’t work for Newsom either.

What Happens Next

The investigation is just beginning. Federal agencies will request documents, interview officials, and follow money trails.

California’s bureaucracy is enormous. The potential fraud is spread across dozens of programs and agencies. A thorough investigation could take months or years.

But the political damage starts immediately. Every new revelation becomes a news cycle. Every embarrassing document becomes a Trump Truth Social post. Every official who gets caught becomes evidence that Newsom’s “clean house” claims were lies.

The pressure will build. The investigations will expand. And Newsom will have to explain why the state he claims to run so effectively has so many problems.

The Bottom Line

Gavin Newsom said he welcomed fraud investigations.

Then an investigation was announced.

Then he responded with “HAHAHAHA” and insults about the president’s brain.

That’s not the response of someone confident in his record. That’s the response of someone who knows what investigators are going to find.

California has billions in documented fraud and waste. The federal government is now looking for more. And the governor’s best defense is apparently calling Trump names.

Tim Walz is watching from Minnesota. He tried the same strategy.

It didn’t work for him either.


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