CA Rep Carl DeMaio says California fraud under Newsom is WAY WORSE than MINNESOTA

California Rep Carl DeMaio says California fraud under Gavin Newsom far exceeds Minnesota - 3 out of every 20 benefits managed by Newson's administration for food stamps completely fraudulent. Newsom allowed $30 billion in fraudulent welfare payments to be issued.

California continues to face a massive crisis involving food stamp fraud within the CalFresh program, driven largely by sophisticated electronic theft. The state remains a primary target for international organized crime rings that utilize skimming devices on point of sale terminals to clone EBT cards. Because these cards have historically lacked secure microchips, they are easily compromised, leading to monthly losses exceeding ten million dollars.

Since late 2021, the total amount of benefits stolen from California residents has surpassed four hundred million dollars, prompting the state to begin a massive rollout of new EBT cards equipped with security chips and tap to pay technology. Beyond technical theft, a significant political and legal conflict has emerged between California officials and the Trump administration over the management of these programs. The federal government has threatened to withhold over one billion dollars in administrative funding because the state has refused to provide specific recipient data.

While federal officials argue this data is necessary to remove unauthorized immigrants and deceased individuals from the rolls, California leaders contend the request is a overreach intended for immigration enforcement. This tension is further complicated by state legislative efforts, such as Senate Bill 560, which seeks to significantly raise the financial threshold for the criminal prosecution of welfare fraud. Victims of benefit theft in 2025 face a more difficult landscape for reimbursement due to a change in federal law.

The federal authority that previously allowed for the replacement of skimmed SNAP benefits expired in late December 2024, leaving states to decide whether to cover these losses themselves.

California has opted to continue providing replacements using its own state budget, but the process remains burdensome for families. Recipients are now required to file reports within strict ninety day windows and are increasingly encouraged to use mobile applications to lock their cards and block out of state transactions to prevent further financial loss.