Sunday, April 5, 2026

Trump Admin Busts Open Gavin Newsom’s $146 BILLION Medi-cal FRAUD Machine

by Steve Watson
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Fox News just laid bare the staggering scale of waste, fraud, and abuse plaguing California’s Medi-Cal program under Governor Gavin Newsom.

In a hard-hitting segment, Kayleigh McEnany highlighted the eye-watering numbers: $146 billion per year lost to fraud in the state’s Medicaid expansion.

“That is slightly more than Warren Buffett’s estimated net worth. It is more than the GDP of several small countries,” McEnany stated.

FOX NEWS ALERT: The staggering scale of fraud in Governor Gavin Newsom’s California has been revealed: $146 billion per year lost to Medi-Cal.

Kayleigh McEnany: “That is slightly more than Warren Buffett’s estimated net worth. It is more than the GDP of several small… pic.twitter.com/sTMRBsUWSa

— RedWave Press (@RedWavePress) April 4, 2026

The revelation comes as the Trump administration ramps up its nationwide assault on entitlement fraud through the White House Anti-Fraud Task Force and aggressive oversight by Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz.

Oz didn’t hold back when asked about the bigger picture.

“How big do you think this fraud is nationwide?” McEnany pressed.

“We believe nationwide it’s $100 billion in Medicare and Medicaid,” Oz replied. “If you’re worried about Medicare being there for you… and you’re worried that it’s going to expire… This fraud, getting rid of it, will DOUBLE the life expectancy of the Medicare trust fund.”

He added, “That’s a massive increase in numbers of years of extra Americans can trust that the program will be there for them.”

Kayleigh McEnany: “How big do you think this fraud is nationwide?”

CMS Administrator Dr. Mehmet Oz: “We believe nationwide it’s $100 billion in Medicare and Medicaid… If you’re worried about Medicare being there for you… and you’re worried that it’s going to expire… This… pic.twitter.com/HqPPKba550

— RedWave Press (@RedWavePress) April 4, 2026

Oz painted a grim picture of how these programs have been gamed in Democrat-led states, using real-world examples of systemic abuse.

“I’ll give you Minnesota as an example. When every child in the neighborhood has autism because their mothers are being paid to say that, then NO child really is getting autism services,” he said.

“In New York state, the number one job in the state… it’s personal care services because we’re paying to have people get their kids to walk the groceries up the stairs for them.”

CMS Administrator Dr. Mehmet Oz: “I’ll give you Minnesota as an example. When every child in the neighborhood has autism because their mothers are being paid to say that, then NO child really is getting autism services.” ??“In New York state, the number one job in the state…… pic.twitter.com/JAXG1PrkMt

— RedWave Press (@RedWavePress) April 4, 2026

The comment come amid a broader federal push that has already triggered arrests, funding holds, and demands for accountability from blue-state governors. 

City Journal’s deep dive into the California scandal confirms the $146 billion figure stems from a conservative 15-25% fraud rate applied to Medi-Cal spending since Newsom’s expansions began in 2019.

Federal officials are now zeroing in on California’s hospice and home-care sectors, where Los Angeles County alone is suspected of $3.5 billion in bogus billing. 

ALERT: California Governor Gavin Newsom knew about rampant hospice fraud in his state but didn’t do anything, according to a new whistleblower.

Los Angeles hospice fraud:

– $3.5B in taxpayer losses

– 1,932 hospice providers

– 112 hospices with state licenses in one commercial… pic.twitter.com/97pccL3qXf

— E X X ?A L E R T S (@ExxAlerts) March 25, 2026

Recent DOJ actions have netted arrests in Southern California health-care schemes totaling tens of millions, part of a pattern the Trump team says Newsom’s administration ignored for years.

JUST IN: Vice President JD Vance CONFIRMS that his Anti-Fraud Task Force assisted law enforcement in cracking down on fraudsters who stole more than $50 million through hospice fraud in Los Angeles, California. Authorities arrested 11 people this morning.

JD Vance: “Our task… pic.twitter.com/8u1CHJAWqQ

— RedWave Press (@RedWavePress) April 2, 2026

Oz’s CMS has sent pointed letters to Newsom and other governors demanding detailed program-integrity plans, provider screening data, and eligibility verification reforms. 

WOW ? THIS SAYS IT ALL

Nick Shirley is investigating Hospice fraud in California when a young kid walks out of a hospice he owns

He’s driving a $120,000 new BMW M6, when asked about the hospice money he literally laughs (very guilty like he’s caught) and speeds off

Again, WOW pic.twitter.com/Hyqwo7RvYK

— Wall Street Apes (@WallStreetApes) March 17, 2026

The administration has already deferred Medicaid payments to states like Minnesota pending corrective action and is using data analytics to flag high-risk billing spikes in personal care, autism services, and adult day programs.

Critics on the left call it political targeting. Americans watching their tax dollars vanish see something else: long-overdue enforcement.

The Trump administration’s America First approach is delivering what previous ones never did—real scrutiny of programs meant for citizens, not grifters. 

By rooting out this $100 billion national drain, the White House is not just saving money. It is extending the life of Medicare for the seniors who paid into it and ensuring Medicaid actually serves those who need it most.

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