PRESS RELEASE: CAL DOGE Finds Up to $425B in Fraud and Waste Exposure, an Increase of $175B Since January 2026 Analysis

FOR IMMEDIATE RELEASE

March 30, 2026

Media Contact:

Nicolette Mangubat

Nico@SwingWireMedia.com

619-306-6956

FOR IMMEDIATE RELEASE

CAL DOGE Contact: media@caldoge.ai | CALDOGE.ai

IRVINE, Calif. — CAL DOGE Finds Up to $425B in Fraud and Waste Exposure, an Increase of $175B Since January 2026 Analysis under Governor Gavin Newsom

Today, CAL DOGE is highlighting a comprehensive analysis released by California State Controller candidate Herb W. Morgan, identifying up to $425 billion in potential fraud and waste exposure across major state programs. 

The analysis is based entirely on publicly available data, including state audits, federal reporting, and legislative analyses, covering the most recent 5 years of California spending. It evaluates exposure across categories such as fraud, waste, improper payments, administrative inefficiencies, and cost overruns. The analysis distinguishes between intentional fraud and broader systemic issues, including improper payments, administrative inefficiencies, and oversight gaps that contribute to financial exposure at scale. California’s overspending and losses have exceeded $80B a year – more than 20% of each year’s budget – and it’s likely a conservative estimate.

The detailed white paper examines major spending areas including Medi-Cal ($115B), K–12 Education ($35B), CalFresh ($25B), unemployment insurance, homelessness programs, infrastructure, and public pensions, among others. Notably, many of these programs involve significant federal funding, underscoring the importance of timely reporting and accurate financial oversight. 

The explosive analysis is particularly significant because today is the fiscal deadline to submit an audited state spending report to the federal government—a deadline Malia Cohen, the current California Controller, has missed in all three of her years in office, and which has been missed in nearly every year under Governor Gavin Newsom, raising serious concerns about fiscal oversight and accountability within his administration.

“This isn’t about politics—it’s about performance,” said Herb Morgan. “The Controller’s office is responsible for tracking, reporting, and safeguarding taxpayer dollars. This analysis highlights where improvements can be made and why experienced financial leadership matters.”

Each year, March 31 marks a critical federal reporting deadline for its annual audited financial statements, reinforcing the importance of timely compliance and strong financial governance. 

“Californians deserve clear visibility into where their money is going and whether it’s delivering results,” Morgan added. “Accountability starts with transparency.”

The report emphasizes that addressing these challenges requires structural reforms in how California tracks, verifies, and reports public spending. As part of a forward-looking solution, the analysis outlines a framework focused on:

• Public, near real-time financial transparency

• Enhanced data analytics and verification tools

• Outcome-based performance tracking

• Strengthened audit and reporting standards

“In the last eight weeks, we’ve discovered that California is the fraud capital of the world. Now, public reports we’ve aggregated show California’s power brokers have wasted more than 20% of taxpayer dollars. No wonder taxes are up and results are down. We need a complete overhaul – oversight of every dollar, tracked every day,” said Jenny Rae Le Roux, Director of CAL DOGE.

The $425B in fraud and waste—if distributed across California’s 18.75M taxpayers—represents over $22,000 in waste per taxpayer over the five year period—money that should never have been lost.

“This is worse than we even expected,” said Steve Hilton, candidate for Governor of California. “To have public reports tell us what we already knew – Newsom is the worst governor in America – reinforces how much we need change. And we’re hearing it in every city across the state – Californians are fed up with unaccountable one-party rule.”

CAL DOGE stated that these findings highlight the need for modernized oversight systems and improved accountability mechanisms to ensure taxpayer funds are properly tracked and managed.

For access to the full white paper, see Herb Morgan’s analysis here.

CAL DOGE was created to promote transparency and accountability in California government spending. To submit tips related to fraud, waste, or abuse, visit: CALDOGE.ai