Democrat Ro Khanna demands hearings on California's $72B fraud claims, urges independent audit

FREMONT, CALIFORNIA: Democratic Rep Ro Khanna of California has called for congressional hearings and an independent audit of California’s state spending following allegations of widespread fraud and waste.

The Silicon Valley lawmaker cited claims of up to $72 billion in mismanagement across state programs, prompting a sharp response from Governor Gavin Newsom’s office.

Khanna said that the effort would be bipartisan and focused on restoring public trust in government spending.

The dispute comes amid renewed scrutiny of California’s high-speed rail project and other state-administered programs flagged by auditors in recent years.

Ro Khanna urges hearings and independent audit of state programs 

Khanna announced his plans for oversight in a post on X, saying that he would pursue hearings through his role on the House Oversight and Government Reform Committee.

“Today, I am announcing that in 2026 I will be working on a bipartisan basis on Oversight to request hearings on state governments’ high risk programs, including California, that have led to illegal payments and eligibility errors,” Khanna wrote.

He added that he would also work on legislation “to call for a full independent audit of California’s budget.”

The congressman said his concerns stem from social media allegations of $72 billion in fraud, a figure that appears to draw from a combination of state auditor reports highlighting risks in programs such as California’s Employment Development Department and cost overruns tied to the state’s long-delayed high-speed rail project.

While acknowledging that the exact amount remains unclear, Khanna later clarified that the figure requires further assessment.

“The precise number needs to be assessed of mismanagement & waste during Covid, and other misspending on the high speed train and risks highlighted by auditor report,” he wrote, adding, “We should have GAO look at it,” referring to the Government Accountability Office.

Khanna framed the oversight push as essential to maintaining public confidence, particularly as debates continue over taxes and government spending.

“One fair critique is the lack of accountability and the corruption in Sacramento,” he wrote, calling the alleged fraud “outrageous and appalling.”

“There needs to be full accountability for the waste and new leadership in Sacramento. Taxpayers are owed an accounting of where every penny of their tax dollars are going, a detailed receipt,” he said.

Gavin Newsom's office defends high-speed rail amid scrutiny 

Khanna’s comments prompted a response from Newsom’s Spokesperson Izzy Gardon, who dismissed the $72 billion figure as exaggerated. 

Gardon described it as a “MAGA made-up number” and defended the state’s high-speed rail project, citing economic benefits including “16,000 union jobs.”

Approved by voters in 2008, California’s high-speed rail project was initially estimated to cost about $33 billion, with service expected to begin in 2020.

Costs have since risen to more than $128 billion, according to Reuters, and service is now projected to start in 2033.

While the state says dozens of structures have been completed and more than 170 miles are in the design and construction phase, no track has yet been laid.