Policy Analysis — June 2026

Fraud, Waste & Abuse

$20B in EDD fraud. 280+ hospice licenses revoked. $146B in estimated Medi-Cal losses. The real numbers and the inflated ones.

EDD Fraud

$20B+

Admitted pandemic fraud

EDD Improper

$55B

Total improper payments

Medi-Cal Est.

$146B

Cumulative since 2019 @ 15%

Hospice Revoked

280+

Licenses in 2 years

Estimated Fraud by Program

Cumulative losses ($B) — various methodologies and sources

City Journal (April 2026) estimated $180B total fraud under Newsom. The $146B Medi-Cal figure uses a conservative 15% rate — anonymous HHS sources suggested 25%, but this is not an official audit. The EDD numbers are state-acknowledged. The Medi-Cal numbers are extrapolations. Source

Context

'Improper' ≠ Fraud

Includes paperwork errors, eligibility mistakes, and overpayments — not just criminal fraud. The 25% HHS figure is an initial anonymous estimate.

CA Ranks 4th in Recoveries

4th nationally in Medicaid fraud dollars recovered per enrollee (2024), leading all large states. Enforcement is more active than most.

Political Backdrop

Congressional probes signed by Republicans only. Newsom is a likely 2028 candidate. Trump admin paused its own hospice oversight program in early 2025.

Sources: EIA, CAISO, CA Energy Commission, CPUC, CA Legislative Analyst, NRC, AAA, GasBuddy, Tax Foundation, MIT/Stanford, Kpler, Bloomberg, Reuters, CalMatters, UC Davis. March 2026.