Rep. Kiley Calls for Congressional Investigation into Massive Waste, Fraud, and Abuse in California


WASHINGTON, D.C. - Congressman Kevin Kiley (R-CA) has formally requested the U.S. Government Accountability Office (GAO) to conduct a comprehensive investigation into waste, fraud, and abuse involving public funds in the State of California.

“Congress has a fundamental responsibility to ensure taxpayer dollars are spent lawfully and protected from criminal misuse,” Congressman Kiley said. “Unfortunately, California has repeatedly failed to safeguard public funds, with devastating consequences for taxpayers and for the most vulnerable people these programs are meant to help.”

In the letter sent to Comptroller General Orice Williams Brown, Rep. Kiley highlighted a series of high-profile fraud cases demonstrating systemic failures in California’s oversight of public money.

During the COVID-19 pandemic, unemployment insurance fraud in California was estimated at $32.6 billion, leaving jobless Californians without benefits while taxpayers funded criminal abuse.

The state’s homelessness programs have faced similar failures. Between 2019 and 2024, California spent $24 billion on homelessness initiatives, yet the homeless population grew by about 30,000, with state audits finding no meaningful metrics to show results.

Recent prosecutions – including nonprofit fraud in San Francisco, a $50 million homelessness funding scheme in Los Angeles, and the conviction of an Orange County judge for workers’ compensation fraud – underscore the scope of the problem.

Congressman Kiley’s request asks the GAO to examine:

- The total amount of publicly reported waste, fraud, and abuse in California since 2016


- A breakdown of fraud by economic sector, including housing, healthcare, transportation, and law enforcement


- The types of perpetrators involved, including grantees and subgrantees


- How stolen public funds are ultimately used


- Lessons from California that can inform federal efforts to prevent fraud nationwide

Rep. Kiley spoke about this on the House floor last night. You can download the video here.

 

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