California Congressman Ro Khanna Accuses Governor Newsom of Widespread Budget Fraud

California Representative Ro Khanna (D-Calif.) has intensified his public criticism of California Governor Gavin Newsom over allegations of widespread fraud and mismanagement in state budget programs.

Khanna cited concerns from constituents who have reported “fraud, waste, and abuse” within Sacramento government operations this week. In a social media post, he stated: “One common concern I have heard from constituents all week who have flooded my inbox is about fraud, waste, and abuse in Sacramento.”

The Silicon Valley legislator announced plans to request hearings on state programs he claims involve illegal payments and eligibility errors. He also pledged to introduce legislation demanding a full independent audit of California’s budget.

“I believe we can and must ask those Americans who have done well to pay more so everyone has healthcare and education,” Khanna added. “In turn, we must provide an accountable and transparent government.”

Khanna previously accused the state of squandering $72 billion in taxpayer funds. Both California Democrats are considered potential contenders for the 2028 presidential race.

Governor Newsom has criticized Khanna for supporting a billionaire tax initiative he opposes. Known as the 2026 Billionaire Tax Act, this proposal would impose a one-time 5% tax on all “forms of personal property and wealth” owned by billionaires in California to fund state healthcare programs like Medi-Cal.

A Newsom spokesperson dismissed Khanna’s fraud claims, stating: “The Governor takes fraud seriously. He also takes accuracy seriously. We wish all elected leaders did, too.” The spokesperson added that they are looking forward to learning more about the proposed legislation via online platforms.