Benny Johnson accuses Gavin Newsom of $100M fraud in California's wasteful homelessness system

LOS ANGELES, CALIFORNIA: Conservative commentator Benny Johnson is squarely blaming Gavin Newsom for California’s homelessness issue.

The popular YouTuber has blamed the Governor for a wasteful homelessness system that burns through taxpayer money without addressing the crisis.

In a video report featuring footage from the streets of Los Angeles and interviews with residents, Johnson lays out allegations of large-scale financial mismanagement within homelessness programs across the Golden State.

Gavin Newsom spent billions on California's homelessness crisis

According to Johnson's investigation, California has spent $31 billion on homelessness initiatives in recent years, which he claims translates to roughly $170,000 per homeless person in a state with nearly 200,000 unhoused residents.

Yet, despite that spending, the homeless population has grown by 30,000 people.

"Gavin Newsom, the governor of this state, says that homelessness is down, that he's fixed homelessness, and he's setting records to make the state better. This is a lie,” Johnson alleged.

The report touched on California’s network of 683 homeless-focused nonprofits, which Johnson said collectively generate more than $1 billion in annual revenue.

One example he offered was PATH (People Assisting the Homeless), which reported $181 million in revenue, including $70 million spent on salaries and benefits.

Johnson noted that the organization’s CEO earns more than $300,000 annually.

That would be an income of pver $25,000 per month.

Judge bashes 'obvious fraud' 

He also conducted interviews with homeless residents in Venice Beach, an area he described as “absolutely disgusting. It smells like piss and weed everywhere that you go. And there's homeless people everywhere.” 

When Johnson asked several homeless individuals about the reported $170,000 per person in spending, their responses were concerning. 

“Nothing," one said, “I got nothing. I'm still right here.”

Another said, “Yeah. I didn't know there was that much money in it.” One individual suggested, “For $170,000, they could easily build long houses with 50 to 100 hammocks in each one.”

Johnson’s video also featured Urban Alchemy, which he said received $3 million to construct a “safe sleep village”.

However, the makeshift tents put up in a parking lot in the name of "safe sleeping" are costing the city $200 per night due to underutilization, Johnson claimed. 

He claimed only half the promised beds were completed, with a judge reportedly describing the arrangement as “obvious fraud” costing California $5,600 per month per resident.

Republican alleges Newsom mixed with corrupt shelter developers 

Johnson also toured an abandoned motel purchased six years ago for $20 million as a potential shelter, which remains undeveloped.

During the visit, he interviewed Republican gubernatorial candidate Steve Hilton.

“They claimed that people were here," Hilton said. "The whole world of crony developers that get the money, they give political donations to Newsom and all the politicians. It is totally corrupt. Welfare state and corruption. That is what this is all about.”

Hilton claimed there was fraud amounting to “$425 billion in potential exposure from whistleblower accounts.”

He added, “The scale of the money in California, it just dwarfs anything in Minnesota.”

Fraud allegations and whistleblower claims

Johnson’s report included several specific examples of alleged fraud.

One case involved a person accused of defrauding Los Angeles of $23 million, which authorities claimed was spent on a mansion, a luxury vehicle, a second home in Greece, designer clothing, luxury vacations, and private school tuition.

Another case involved the Weingart Center, which Johnson said is under federal investigation for fraud and alleged overpayments tied to so-called “homeless skyscrapers” costing $800,000 per unit.

Johnson also cited a developer who allegedly purchased a facility for $11 million and sold it for $27 million within the same week, earning a $16 million profit.

Johnson interviewed a longtime homelessness advocate with 32 years of experience.

“You just walk by and engage with more homeless people than I've ever seen Gavin Newsom engage with," they said anonymously.

"Our politicians only come down here for political shoots. There is no way Gavin Newsom would ever walk and talk up to some random homeless person.” 

The video also featured claims from an anonymous whistleblower who alleged that many shelter facilities were being used for purposes other than assisting homeless Americans.

“The homeless industrial complex isn't there to help out homeless people at all. We're missing the whole point," they said.

The whistleblower further claimed that as many as 60% of occupants in some facilities were undocumented immigrants. “They stay for like a year, year and a half... Sometimes it's like an entire family. One of the shelters, this Russian family, they're driving a brand new BMW," they said. “Everybody has new stuff. They're dressed well.”

The whistleblower added, “60% of California's homeless facilities are just free housing for illegals... who drive luxury cars and live lavish lifestyles.” They described these locations as “extrajudicial embassies for criminal aliens.”

Johnson also visited Path Villas, which he described as a converted hotel costing nearly $200 million annually and funded roughly 90% by federal money. “There's no checks on who's getting this assistance," he alleged.

Johnson concluded the report by declaring, “And so you got to ask the question, when are the people of California going to do that? When are they going to wake up? When is the fraud going to stop? Make California great again."