"Gov. Gavin Newsom is responding after President Donald Trump said Tuesday that California is being investigated for fraud. The president said in a post on Truth Social that the "Fraud Investigation of California has begun," but he did not provide any specifics about the alleged fraud. In a statement to ABC News, Newsom's office said he's blocked more than $125 billion in fraud, arrested criminals and protected taxpayers from scam artists."
"Meanwhile, California is one of five Democrat-run states being targeted by the Trump administration. The Department of Health and Human Services said it's freezing $10 billion in federal funds over so-called fraudulent child care programming. That could force families to pay out-of-pocket. The other states impacted by the freeze are Colorado, Illinois, Minnesota and New York, an HHS official confirmed to ABC News. ABC News contributed to this report. Copyright © 2026 KABC Television, LLC. All rights reserved."
President Donald Trump posted that a "Fraud Investigation of California has begun" but provided no specifics about the alleged fraud. Governor Gavin Newsom's office said he has blocked more than $125 billion in fraud, arrested criminals and protected taxpayers from scam artists. The Department of Health and Human Services is freezing $10 billion in federal funds over alleged fraudulent child care programming. California is one of five Democratic-run states targeted by the freeze, which could force families to pay child care costs out-of-pocket. The other states affected are Colorado, Illinois, Minnesota and New York.
Read at ABC7 Los Angeles
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