Newsom responds after Trump says California is under investigation for fraud

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Wednesday, January 7, 2026
Trump says California is under fraud investigation, Newsom responds

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.

The Department of Health and Human Services is freezing $10 billion in federal funds in five Democrat-run states over allegations of 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.

Newsom's office issued the following statement to ABC News:

"Donald Trump is a deranged, habitual liar whose relationship with reality ended years ago.

This is not complicated. He spends his days posting whatever garbage his shriveled little brain can cough up -- and Fox News dutifully treats it like the Lord's scripture.

Meanwhile -- in the actual world where adults govern -- Gavin Newsom has been cleaning house. Since taking office, he's blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.

Gavin Newsom runs a state. Donald Trump runs his mouth and little fingers."

ABC News contributed to this report.

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