Democrat Ro Khanna Takes Swipe At Newsom, Says He’s Flooded With Constituent Complaints About Fraud
California Democratic Rep. Ro Khanna is toughening his criticism of Gov. Gavin Newsom’s handling of taxpayer dollars, arguing that $72 billion in alleged fraud in the state budget is “outrageous and appalling.”
Khanna, a populist Democrat representing Silicon Valley, said he was inundated with voters concerned about “fraud, waste and abuse” in California state government. The California Democrat said he would launch a bipartisan effort from his seat on the House Oversight Committee to combat fraud at the state level and draft legislation that would independently audit the Golden State’s budget. (RELATED: Gavin Newsom’s Popularity Rises in California After Gerrymandering the State)
“There needs to be full accountability for the waste and new leadership in Sacramento,” Khanna wrote on X on Saturday. “Taxpayers must account for where every penny of their taxes goes – an itemized receipt. »
Newsom’s camp accused Khanna of parroting Republican talking points by calling attention to wasteful spending in California. The duo is considered a contender in the 2028 Democratic presidential primary, with Newsom quickly taking the lead in recent polls.
“Interesting to see a Dem repeating the $72 billion figure MAGA made up,” Izzy Gordon, Newsom’s communications director, wrote on X in response to Newsom’s initial tweet. “This ‘fraud’ would include the $17 billion spent on high-speed rail – which created 16,000 union jobs and built more than 50 COMPLETED projects. Calling union work ‘fraud’ is certainly a choice.”
California’s high-speed rail project has been plagued by serial delays and mounting costs. The Trump administration revoked $4 billion in federal funding for the project earlier this year, calling it a “waste.”
An aerial image shows construction workers building the Hanford Viaduct over Highway 198 and past agricultural fields as part of the California High Speed Rail (CAHSR) transit project in Hanford, California, February 12, 2025. (Photo by Patrick T. Fallon/AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
Khanna recently ignited a firestorm among tech elites who threatened to leave California after supporting a controversial wealth tax that could appear on the Golden State ballot in 2026. The proposal — spearheaded by a major health care union affiliated with the Democratic Party — would impose a one-time 5% tax on all assets of California residents worth more than $1 billion. Newsom voiced his opposition to the measure in December.
“While calling for higher taxes, FDR [former President Franklin D. Roosevelt] also denounced the “tax burden caused by inefficient and extravagant local government.” I have always been in favor of accountability and fighting corruption,” Khanna wrote on Tuesday. In return, we must provide accountable and transparent government.
Khanna’s decision to shine a light on the fraud comes after Republicans sharply criticized a massive welfare fraud scandal in Minnesota that could amount to more than $1 billion in stolen taxpayer money. More than 60 people, many of Somali origin, were convicted.
House Oversight Committee James Comer has invited Minnesota Democratic Gov. Tim Walz and Attorney General Keith Ellison to testify before his panel in February 2026.
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