Welfare Fraud in Newsom’s California is Exponentially Worse Than Walz’s Minnesota: DeMaio [WATCH]

Carl DeMaio accused California Governor Gavin Newsom of overseeing what he described as widespread and costly welfare fraud, arguing that the scale of the alleged misconduct far exceeds similar issues raised in other states and that national media outlets have largely failed to scrutinize the situation.

In a statement criticizing both state leadership and media coverage, DeMaio contrasted Newsom’s record with allegations previously directed at Minnesota Governor Tim Walz.

DeMaio said the attention given to Minnesota has not been matched by scrutiny of California, despite what he described as significantly larger financial losses tied to welfare and unemployment programs.

“If you thought that Minnesota Governor Tim Walz had a real bad problem with welfare fraud in his state, Gavin Newsom saying, Hold my beer buddy, Newsom’s welfare fraud is exponentially worse than Tim Walz,” DeMaio said.

DeMaio argued that national media outlets have failed to report adequately on what he characterized as a major scandal involving California’s unemployment system.

According to DeMaio, Newsom’s administration allowed tens of billions of dollars in fraudulent payments to be issued, with financial consequences now falling on employers across the state.

“But the liberal media nationally, they’re not paying attention. They’re not holding him accountable. There’s almost no discussion of it,” DeMaio said.

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DeMaio stated that California’s unemployment agency issued what he described as $30 billion in fraudulent welfare payments, adding that the financial burden has since been shifted to small businesses.

He said those businesses are now required to absorb the cost through higher payroll taxes.

“Newsome allowed $30 billion in fraudulent welfare payments to be issued by the unemployment agency, and now small businesses in California have to pay off all of that debt through higher payroll taxes,” DeMaio said.

He further claimed that the issue has received little to no sustained national coverage.

“No coverage of that scandal,” DeMaio said.

DeMaio compared the California situation to allegations involving Minnesota, referencing accusations that Walz allowed food stamp fraud connected to Somali organizations.

DeMaio said the figures attributed to Minnesota were far smaller than what he alleged occurred under Newsom’s administration.

“It is much worse than what happened with Tim Walz in Minnesota Waltz is accused of allowing two $50 million of food stamp fraud to occur to Somali organizations, and Newsom is sitting here with multi billion dollars worth of food stamp fraud,” DeMaio said.

He went on to cite what he described as a high rate of fraud within California’s food stamp program, attributing the issue directly to Newsom’s administration.

“His food stamp fraud rate is 13.4% that’s three out of every 20 benefits managed by Newsom’s administration for food stamps completely fraudulent,” DeMaio said.

In addition to allegations of fraud, DeMaio criticized California’s funding of nonprofit organizations, arguing that taxpayer dollars are being directed to groups engaged in political activity.

He contrasted this with the criticism directed at Minnesota, saying California’s approach involves a broader network of organizations receiving public funds.

“And when it comes to funding left wing organizations like the Somali community in Minnesota, California is funding all sorts of left wing NGOs, and a lot of those NGOs are using taxpayer money for politics,” DeMaio said.

DeMaio concluded by again faulting national media outlets for what he described as a lack of coverage and accountability related to the allegations against Newsom.

“Liberal media isn’t covering any of this, but now you know,” DeMaio said.

WATCH:

California Rep Carl DeMaio says California fraud under Gavin Newsom far exceeds Minnesota

– 3 out of every 20 benefits managed by Newson’s administration for food stamps completely fraudulent
– Newsom allowed $30 billion in fraudulent welfare payments to be issued by the… pic.twitter.com/a3UYQiBkkY

— Wall Street Apes (@WallStreetApes) December 22, 2025