Silicon Valley Democrat Rep. Ro Khanna has publicly targeted California Governor Gavin Newsom with explosive claims of $72 billion lost to fraud, waste, and abuse in the state budget. Driven by frustrated constituents, Khanna is leveraging his position to launch a rare bipartisan effort with Republicans, demanding congressional hearings and a full independent audit. This move highlights rising taxpayer frustration and sets the stage for a potential 2028 gubernatorial showdown between Khanna and Newsom.
Story Highlights
- Rep. Ro Khanna claims $72B in fraud, waste, and abuse in California’s budget, driven by constituent complaints from frustrated taxpayers.
- Khanna announces bipartisan push with Republicans for congressional hearings on high-risk programs and a full independent audit bill.
- Governor Newsom’s team dismisses the figure as inaccurate, citing existing state audits amid ongoing Democratic infighting.
- Move highlights Silicon Valley’s tax frustrations and potential preview of Khanna’s 2028 gubernatorial ambitions against Newsom.
Khanna’s Bold Fraud Accusation
Rep. Ro Khanna (D-CA-17) publicly targeted California Governor Gavin Newsom and state officials with claims of $72 billion lost to fraud, waste, and abuse in the state budget. Silicon Valley constituents, including high-earning tech professionals, flooded Khanna’s office with complaints about untracked homelessness spending and Employment Development Department (EDD) fraud from the COVID era. Khanna positioned this as a demand for accountable government, vowing to partner with Republicans on oversight. This rare bipartisan overture signals taxpayer exhaustion with Sacramento’s fiscal mismanagement under Democratic rule.
BREAKING – A 92-page report by the California State Auditor has found that over $70 billion in taxpayer funds have been lost, including $2.5 billion in SNAP fraud, $24 billion on fighting homelessness, and $18 billion for a high-speed rail where not a single track has been laid.… pic.twitter.com/GbyHOp1NoU
— MJADALA AFRIKA (@IG_Magazine) December 27, 2025
Call for Congressional Hearings and Audit Legislation
On December 31, 2025, Khanna detailed plans in a lengthy X post for congressional hearings targeting high-risk programs plagued by illegal payments and eligibility errors. He committed to introducing legislation for a comprehensive independent audit of California’s entire budget. This follows repeated failed state-level audit expansions blocked under Newsom. Khanna’s initiative leverages federal power to challenge state spending, appealing to conservatives who have long decried billions wasted on ineffective programs like homelessness initiatives amid California’s budget deficits.
Newsom’s Defense and Democratic Tensions
Governor Newsom’s spokesperson, Izzy Gardon, fired back, stating the governor takes fraud seriously through existing constitutional auditors and dismissing Khanna’s hearings as potential taxpayer waste. Newsom’s team labeled the $72 billion figure spurious, noting it lacks a cited source and contradicts recent state auditor reports that flag vulnerabilities without quantifying such losses. This exchange underscores intra-Democratic rifts, with Khanna’s populist stance clashing against Newsom’s establishment defense, especially as unions push a 5% wealth tax opposed by tech executives.
Historical Waste and Broader Implications
California’s history of mismanagement bolsters Khanna’s case, including billions in EDD improper payments during COVID and untracked homelessness funds. Annual deeper audit proposals have stalled under Newsom, eroding public trust. Short-term, this amplifies scrutiny on state spending amid potential Trump administration cuts. Long-term, successful bipartisan efforts could save billions, shield Silicon Valley from tax hikes, divide Democrats further, and aid Republicans by validating waste narratives—offering hope for fiscal sanity in the Golden State.
In this era of President Trump’s return to the White House, emphasizing limited government and economic accountability, Khanna’s defection highlights how even Democrats recognize the failures of unchecked spending that fueled inflation and burdened families nationwide.
Watch the report: California Caught Wasting BILLIONS — State Auditor Sounds the Alarm
Sources:
- Supporting proposed tax on wealthy, California Rep. Ro Khanna calls for oversight on state spending
- Silicon Valley Dem Ro Khanna slams California officials over ‘$72B fraud,’ calls for congressional hearing
- Democrat Ro Khanna Takes Swipe At Newsom, Says He’s Flooded With Constituent Complaints About Fraud
