California Faces $180 Billion Fraud Epidemic Under Newsom, Opinion Piece Warns

California confronts the highest cost of living and some of the highest taxes in America, funding a massive welfare state. Taxpayers receive an epidemic of fraud in return, with an estimated $180 billion or more stolen under Gov. Gavin Newsom.

This situation serves as a warning for America as Democrats seek to expand the state's model nationwide. Fraud stems from policies that ignore human nature and grow government beyond constitutional and moral limits.

America's Founders recognized that people respond to incentives. California's handout economy encourages joblessness, fraud and social breakdown.

The state's unemployment insurance program stands out, with no time limit on benefits, no work requirements and minimal oversight. It has made joblessness a career and drawn criminals. At one point, applications exceeded the number of Californians over age 18. One rapper boasted in lyrics, "You gotta sell cocaine, I can just file a claim."

This marks a moral collapse by fraudsters and government alike. Officials fail to protect law-abiding citizens and their earnings.

The pattern extends to other programs. Hundreds of sham hospice facilities, some listed at burrito stands and auto body shops, have collected millions for nonexistent patients. Medi-Cal's budget swelled after Newsom's push for guaranteed health care for all, yet loses about a quarter of spending to fraud annually.

Government betrays its duty by handing earnings to the unscrupulous. Middle-class taxpayers pay twice, through high taxes and declining services.

As government expands, it turns self-serving. San Francisco spends over $100,000 per homeless person yearly on eradication efforts, with little progress. Funds flow to nonprofits that profit from perpetuating the problem.

Dozens of California public employees faced fraud or embezzlement charges since 2024. Newsom's chief of staff resigned amid corruption charges but received a $50,000 payout for unused vacation time.

State Democrats respond by hindering exposure and prosecution. The "Stop Nick Shirley Act," named after a journalist who uncovered Somali day care fraud in Minnesota, would hide fraudsters' identities and criminalize online exposure efforts. Another bill raises the felony welfare fraud threshold from $950 to $25,000.

Wisconsin offers a contrast. In 1996, it required work searches for recipients and tied county funds to job placements, not caseloads. Poverty dropped sharply, spurring reforms in other states.

Thomas Jefferson warned against governments wasting labors under the pretense of care. California can improve by shrinking welfare, cutting taxes and promoting work, honesty and self-reliance.

Rob Noel, president of Washington Writers Network, wrote this opinion.