$12 Billion a Year Vanishing into Fake Timesheets and Union Pockets [WATCH]

A California program designed to provide in-home care for vulnerable residents is drawing renewed scrutiny after policy expert Christopher F. Rufo detailed what he described as widespread fraud, while California Gov. Gavin Newsom defended his administration’s handling of the issue.

The discussion unfolded during an exchange with Dana Perino, who asked Rufo to explain how he first uncovered the alleged problems within the system.

“Chris joins me now. Chris, okay, wait, so how did you initially find out about this, and what was the scam?” Perino said.

Rufo responded by outlining the scope and structure of the program.

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“So the scam is California’s in home supported services or in home care program. It spends about $30 billion a year. It’s one of the state’s largest programs, and it pays 800,000 Californians to stay home, mostly with relatives, to take care of them, to cook, clean, watch television,” Rufo said.

He added that while the program is intended to support families, it has faced longstanding concerns over misuse.

“On the surface, it’s compassionate. You’re taking care of your grandfather or a child with disabilities,” he said. “But experts say and this is dating back to the Schwarzenegger administration, and getting worse and worse and worse, that between 20 and 40% of this program is just pure fraud, fraudulent timesheets, fraudulent billing.”

Rufo described the program as relying heavily on self-reporting.

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“It operates on the honor system,” he said, adding that “experts say it’s losing between six and $12 billion a year to people who are taking this compassionate program and ripping it off.”

Perino emphasized the scale of the alleged losses.

“All right, we’re going to put that up on the board for everyone to see,” she said. “The number is because it’s between six and 12 billion, billion with a B dollars a year.”

She then referenced previous remarks from Newsom addressing the issue.

“So he was asked about this back in January, January, 29 and this is what he said,” Perino said before playing the clip.

In the video, Newsom described efforts by his administration to address fraud concerns.

“2021, we did a moratorium on new hospice program,” Newsom said. “280, we shuttered. We’ve been after this for years and years and years.”

He added, “We want an open hand, not a closed fist. We absolutely are here to be a partner, to go after waste, fraud and abuse.”

Newsom also pushed back on the framing of the issue.

“No one is denying these issues,” he said, “but let’s also not deny this is purely political.”

Perino then asked Rufo to respond to the governor’s remarks.

“How would you respond to that?” she said.

Rufo disputed Newsom’s characterization and said the program has expanded under his administration.

“Well, of course, that’s not true,” Rufo said. “Gavin Newsom, despite all of these concerns from Democrats and some and Republicans, actually has expanded the program at every turn, and dismantled enforcement mechanisms.”

He pointed to economic and political incentives tied to the program.

“And the question is, why is he doing so?” Rufo said. “One reason is because this is now California’s largest single occupation. This in home care program subsidized by taxpayers, represents about half of all new jobs created under Newsom.”

Rufo also referenced financial contributions linked to the program.

“But also because these in home care providers give about $150 million a year to the labor unions,” he said, adding, “which are, of course, Gavin Newsom’s number one kind of political power base.”

He described what he viewed as a recurring cycle.

“And so it is a cycle of corruption,” Rufo said. “Newsom gives $30 billion in taxpayer money to these in home caregivers, including huge numbers of fraud.”

“These caregivers give money to the unions,” he continued. “The unions give the money back to Gavin Newsom, this is the dirty business of California, and we’ve blown it wide open.”

Perino then asked whether similar issues are appearing beyond California.

“Chris, do you think that this type of scam or fraud is being replicated in other states besides California?” she said.

Rufo said the concerns are not limited to one state.

“Yeah, we know that it is,” he said. “In fact, in New York State, Kathy Hochul by no means a conservative or a right winger. She’s, you know, the Democratic governor said that this was the most fraud ridden, scandalous program in the state.”

He noted that comparable programs exist nationwide.

“There are similar programs in all 50 states,” Rufo said.

Rufo also pointed to federal funding as a key factor.

“And here’s the thing for viewers to keep in mind,” he said. “This isn’t just California taxpayers. This is subsidized almost entirely by federal taxpayers.”

He concluded by emphasizing the broader financial impact.

“And so whatever state you live in, if you pay federal taxes, you are giving Gavin, Gavin Newsom your cash,” Rufo said. “You are giving New York and Illinois and all the other most fraud prone states your cash for these scams.”

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