Rep. Kiley Calls for Congressional Investigation into Massive Waste, Fraud, and Abuse in California

<p><strong>WASHINGTON, D.C.</strong> &#8211; Congressman Kevin Kiley (R-CA) has formally requested the U.S. Government Accountability Office (GAO) to conduct a comprehensive investigation into waste, fraud, and abuse involving public funds in the State of California.</p>

<p>“Congress has a fundamental responsibility to ensure taxpayer dollars are spent lawfully and protected from criminal misuse,” <strong>Congressman Kiley</strong> said. “Unfortunately, California has repeatedly failed to safeguard public funds, with devastating consequences for taxpayers and for the most vulnerable people these programs are meant to help.”</p>

<p>In the <a href="https://d12t4t5x3vyizu.cloudfront.net/kiley.house.gov/uploads/2026/02/Rep.-Kiley-GAO-CA-Fraud-Letter.pdf"><strong>letter</strong></a> sent to Comptroller General Orice Williams Brown, Rep. Kiley highlighted a series of high-profile fraud cases demonstrating systemic failures in California’s oversight of public money.</p>

<p>During the COVID-19 pandemic, unemployment insurance fraud in California was estimated at <strong>$32.6 billion</strong>, leaving jobless Californians without benefits while taxpayers funded criminal abuse.</p>

<p>The state’s homelessness programs have faced similar failures. Between 2019 and 2024, California spent <strong>$24 billion</strong> on homelessness initiatives, yet the homeless population grew by about <strong>30,000</strong>, with state audits finding no meaningful metrics to show results.</p>

<p>Recent prosecutions – including nonprofit fraud in San Francisco, a <strong>$50 million</strong> homelessness funding scheme in Los Angeles, and the conviction of an Orange County judge for workers’ compensation fraud – underscore the scope of the problem.</p>

<p>Congressman Kiley’s request asks the GAO to examine:</p>

<ul class="wp-block-list">
<li>The total amount of publicly reported waste, fraud, and abuse in California since 2016</li>

<li>A breakdown of fraud by economic sector, including housing, healthcare, transportation, and law enforcement</li>

<li>The types of perpetrators involved, including grantees and subgrantees</li>

<li>How stolen public funds are ultimately used</li>

<li>Lessons from California that can inform federal efforts to prevent fraud nationwide</li>
</ul>

<p><a href="https://www.youtube.com/watch?v=UPAiL3dUIBw"><strong>Click here</strong></a> to watch Rep. Kiley&#8217;s House floor remarks. </p>

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