One-Third of California Community College Applications Were Scams, Audit Finds [WATCH]

A Newsmax segment featuring California Assemblyman Kevin Kiley and Newsmax’s Joe Moeller focused on new findings of fraud and mismanagement across multiple California state programs, including community colleges, unemployment insurance, and social services, as outlined in the California State Auditor’s 2025 high-risk report.

During the segment, Kiley highlighted what he described as a major discovery involving fraudulent applications submitted to California’s community college system.

“Now the latest example that we’ve learned is that over a third of community college applications in the state were fraudulent. These were not real people, not real students, actually seeking a spot at one of our community colleges. What they were instead, were scams,” Kiley said.

Moeller said the issue has been developing for months and has already resulted in significant financial losses.

“Has been reported on over the past several months. Kylie noted that people were found to be individuals committing financial aid fraud, costing more millions of dollars of taxpayer money, according to the California Community chancellor’s office,” he said.

The reporter also discussed the broader findings of the California State Auditor’s 2025 high-risk report, which was released earlier this year.

“I talked to Kylie just yesterday about the recent California State Auditor’s 2025 high risk report. It warns multiple state agencies still face serious problems with waste, fraud and mismanagement, including the Employment Development Department and medical,” Moeller said.

“The report also adds social services to the High Risk List, warning Cal Fresh errors could cost California billions of dollars. The auditor says hundreds of millions and potentially billions of taxpayer dollars are at risk.”

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Kiley said the number of agencies flagged by the state auditor has doubled since Governor Gavin Newsom took office, despite significant increases in state spending.

“It is now eight different agencies. It was four when Newsom became governor. We have a budget that has increased by $124 billion but everything’s gotten worse,” Kiley said.

He pointed to statewide outcomes that he said reflect mismanagement alongside specific examples of large-scale fraud.

“In California, we’re number one in homelessness, number one in unemployment, number one in poverty. And then you have these specific examples of fraud on an unimaginable, staggering scale, with high speed rail, with $32 billion in unemployment insurance,” Kiley said.

Moeller said he contacted the governor’s office following the release of the auditor’s report to seek comment on the findings and Kiley’s criticism. “Now, this report just came out weeks ago, I reached out to the governor’s office regarding the auditor’s High Risk List,” the reporter said.

According to the reporter, the governor’s office disputed claims of fraud tied directly to the report. “A rep tells me it does not allege fraud or lost billions of dollars, calling it a tool for oversight, and accuses Kylie of misrepresenting the report,” he said.

The reporter added that state officials defended their handling of past and current programs.

“Officials say covid era unemployment fraud has been addressed with billions of dollars recovered. That rep also added that there is no fraud going on when it comes to high speed rail, despite no line being laid and the homeless money as that is being accounted for,” he said.

The segment concluded with the reporter summarizing Kiley’s broader concern about oversight beyond California.

“Kylie says what’s going on Minnesota just highlights the need for more oversight in other states besides Minnesota, send it back to you. Joe Mueller, reporting, live there from California,” said Moeller.

WATCH:

A third of community college applicants were fake. $17 billion was spent on High-Speed Rail with no track. $24 billion in homelessness funds disappeared. $32 billion was lost to unemployment fraud. Medi-Cal and SNAP are rife with improper payments.

This is Newsom’s California. pic.twitter.com/Camy6pHbJz

— Kevin Kiley (@KevinKileyCA) December 30, 2025