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“Hundreds of Billions Wasted”: Trump Launches Fraud Investigation Into California
Posted
January 7, 2026
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9:23Now PlayingPresident Donald Trump announced that a federal fraud investigation into California has begun, making the declaration in a Truth Social post in which he claimed the state is "more corrupt than Minnesota." While the president did not provide specific details, the announcement follows a letter from California Republican gubernatorial candidate Steve Hilton urging U.S. Attorney General Pam Bondi to investigate alleged fraud, waste, and abuse. Hilton alleges more than $250 billion in taxpayer losses, citing audits that point to tens of billions lost through unemployment fraud, homelessness spending with worsening outcomes, the stalled high-speed rail project, costly Next-Gen 9-1-1 upgrades many residents still cannot use, and ongoing concerns over Medi-Cal eligibility and improper payments. California Republican gubernatorial candidate Steve Hilton joins Alicia Summers to detail how he calculated more than $250 billion in alleged fraud, waste, and abuse.
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