The Federal prosecutor accuses Newsom of fraud amid Trump crackdown
The Trump administration is cracking down on California fraud in homelessness and welfare programs. Federal prosecutors say millions in taxpayer money may have been misused. Governor Newsom’s office denies wrongdoing and says they blocked $125 bil...

Newsom, a Democrat who may run for president in 2028, used the speech to reflect on his legacy after eight years leading the nation’s most populous state. He highlighted California’s work on homelessness and high healthcare costs and noted the state has sued the Trump administration more than 50 times.
Criticism of Federal Government
Newsom criticized the federal government, saying, “The federal government, respectfully, it’s unrecognizable, protecting the powerful at the expense of the vulnerable”, as stated by AP. “Their credo seems to be about fear — fear of the future, fear of the stranger, fear of change.” He slammed the Trump administration for creating a “carnival of chaos on the national stage”, including attempts to withhold food aid from states, send the National Guard into Democratic cities, and cut medical research funding.Newsom said California should be an example for the whole country because it supports fair and modern policies even when the federal government disagrees. He often uses this speech to talk about California’s strong economy and new technology, and to defend the state from people who complain about high living costs and homelessness. He also joked that critics have “California Derangement Syndrome,” a play on Trump’s “Trump Derangement Syndrome.”
Support for fire survivors
The speech came a day after the first anniversary of deadly L.A.-area fires that killed 31 people and destroyed neighborhoods. Newsom has repeatedly asked Trump and Congress for billions in disaster aid, including nearly $34 billion to recover from the fires, but Trump has not responded, as cited by AP.The governor has clashed with Trump over National Guard deployment in L.A. and blocking California’s ban on gas-powered cars by 2035. Newsom’s speech preceded the release of his proposed state budget for the next fiscal year, after years of budget shortfalls. He highlighted California’s efforts to combat homelessness, noting a 9% drop in unsheltered homelessness last year.
Crime and housing focus
Newsom praised California for helping clean up and giving mortgage help to people affected by L.A.-area fires, but said more work is needed to rebuild towns. He criticized big investors who buy cheap homes because it makes rent higher and stops people from owning homes. He also celebrated low murder rates in Oakland and San Francisco and said the state gave $267 million to police in 2023 to fight theft and property crimes, as stated by AP.Newsom highlighted California Highway Patrol efforts to curb crime in cities like Bakersfield, San Bernardino, and Stockton. This was Newsom’s first in-person State of the State speech since 2022; he usually submits written addresses due to dyslexia making teleprompter reading hard. In past years, he has also posted prerecorded speeches and toured California to announce policies on homelessness and mental health crises. Under the California constitution, Newsom cannot run for a third term as governor.
FAQs
Q1: Why is the Trump administration investigating California?They are checking for fraud and misuse of taxpayer money, especially in homelessness and welfare programs.
Q2: What did California officials say about the fraud claims?
Governor Newsom’s office said they blocked $125 billion in fraud and protected taxpayers from scams.
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