Fraud could be the last nail in the coffin for Gavin Newsom’s presidential hopes

Gavin Newsom wants to be president so badly it’s painful to watch. His struggles and despair stem in part from his many failures as governor of California. But his biggest problem may be the increasing emergence of welfare fraud in his state.

Fake hospice operations, stolen unemployment insurance, student aid fraud, missing housing fund and many other flaws reportedly cost taxpayers tens of billions of dollars, sparked federal investigations, and brought embarrassing oversight to the Golden State.

The Newsom administration has responded by increasing its own oversight of the state’s welfare programs. Recently, state Attorney General Rob Bonta announced that he would file criminal charges against 14 nursing home companies that bill Medi-Cal and Medicaid. $267 million in non-existent services.

But that’s only what podcaster Nick Shirley and Center for Medicare and Medicaid Services Administrator Dr. It happened after Mehmet Öz shared this post. incriminating videos About the apparent fraud in his state. In one such video, Oz described a drive through Los Angeles’ Van Nuys neighborhood and said: “There are 42 nursing homes in this four-block area of ​​Los Angeles… So either there’s a lot of people dying here, or you’re dealing with a scam activity that’s so good that everybody wants to get involved.”

Of course, fraud isn’t California’s only problem. Newsom has witnessed one financial disaster after another.

At the top of the list are the most talked about ones. 126 billion dollar high speed railway project This is almost 20 years late and almost 400 percent over budget. Meanwhile, reconstruction of fire-damaged neighborhoods in Los Angeles continues. can’t seem to move forward thanks to unreasonable regulations and permit requirements. of the state Repeated budget deficits raise taxes. Regulatory overreach and unreasonable climate policies are killing California one of the most expensive places to live in the country — is not ideal if you and your party are driven by promises of “affordability.”

All this happened pushing businesses And residents are fleeing the stateAs have millions of people online since Newsom took office.

Newsom’s clumsy efforts to appeal to a national audience also left him in a difficult position. A year ago, the governor tiptoed into the debate over transgender athletes competing in women’s sports as he sought to temper his left-wing liberalism. He told the late conservative activist Charlie Kirk that biological boys compete against girls. “Extremely unfair” A view shared by the vast majority of Americans, but one that stands in stark contrast to their woke brethren. Newsom, a long-time advocate for gay and transgender rights, has faced harsh rebukes from activists who see this mainstream view as a betrayal.

Newsom also faced criticism for claiming in his memoirs that: “Young Man in a Hurry” He said he grew up poor. He told a podcaster: “I was just kind of educating myself there. … I was sitting there with Wonder bread. [and] macaroni and cheese.” Critics slammed the governor’s story “poor origin story” The kind invented by privileged candidates to appear more relatable. In reality, his father worked as a judge and lawyer. “consigliere” for the wealthy Getty family, which sponsored the aspiring politician.

But nothing was more embarrassing than Newsom’s Latest attempt to improve standing with black voters At a recent event in Georgia. The governor told Atlanta Mayor Andre Dickens: “I’m not trying to impress you. I’m just trying to impress you, I’m just like you. I’m not better than you. I’m a guy with a 960 SAT.” He also revealed that he has dyslexia, which prevents him from reading conversations; This claim was met with considerable skepticism.

Rivals including Trump supporter Niki Minaj attacked. Published on X: “The way to connect with black people is to tell them how stupid he is and that he can’t read. That means my initial reading of him was correct. He was given a lot and put into high positions that he never deserved or deserved.” Ah.

These many missteps have not put Newsom out of contention. Betting sites put him ahead of the 2028 Democratic presidential candidate pack by a significant margin; Most voter polls show that in second placeShe trails only former Vice President Kamala Harris, whose name recognition is significantly better than her.

But Newsom’s chances may dwindle as accusations of corruption mount that undermine the Golden State. A new article in City Journal allegations HE The state has lost “at least $180 billion” to “massive, systematic, brazen fraud” since Newsom took office seven years ago.

Some of the scams are identical to scams in other states, such as California. He distributed enormous amounts of money in the wake of the pandemic. In Newsom’s state, officials made it easier to quickly disburse unemployment insurance funds. relaxation of long-standing surveillance measuresIt almost guarantees theft. The state may have paid $1 billion to Covid-era unemployment insurance funds Using the names of state prison inmates or scammers.

And the siphoning of funds wasn’t limited to Californians; foreigners also helped themselves Romanian-led fraud ring planning a $5 million scam.

Theft, especially in unemployment insurance, was so common that They created songs with verses like rappers “You should sell cocaine, I’ll just sue.” It’s hard to imagine that the authorities had no idea what was going on.

It wasn’t just unemployment insurance fraud, either. City Journal reports spending on Medi-Cal rose during Newsom’s term from $94 billion the year before he took office. $197 billionEven like in California population He refused. The same magazine also identified a possible reason for this: The program Transgender surgeries for homeless illegal immigrants.

A recent poll in California’s Orange County may indicate a shift in attitudes toward the once-popular governor. Purple indicates Newsom’s approval in a district only 38 percent55 percent disapprove – only 1 point better More than President Trump’s stance.

Newsom may be in a rush to become president, but his record as governor will be a massive boost to speed that will at least slow him down.

Liz Peek is a former partner at leading Wall Street firm Wertheim and Company.

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