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Netter News: California Corruption Edition
This week, we’re covering all the stories on California corruption!
On Tuesday, January 6, 2026, President Donald Trump announced on Truth Social that a "Fraud Investigation of California has begun," though he did not provide specific details regarding the nature of the probe.
The announcement coincides with a major federal funding freeze affecting California and four other Democratic-led states:
Funding Freeze: The Department of Health and Human Services (HHS) is withholding approximately $10 billion in federal funds across California, Colorado, Illinois, Minnesota, and New York.
Targeted Programs: The cuts impact critical social safety net programs, including:
$7 billion from Temporary Assistance for Needy Families (TANF).
$2.4 billion from the Child Care and Development Fund.
$870 million in social services block grants.
Stated Rationale: Administration officials cited concerns over "massive amounts of fraud" and misuse of taxpayer dollars. The move follows a multibillion-dollar fraud scandal in Minnesota that recently led Governor Tim Walz to decline a bid for a third term.
Political Context: The investigation follows a formal request by Republican candidates for Governor and State Controller in California, Steve Hilton and Herb Morgan, who alleged they uncovered up to $250 billion in potential fraud and mismanagement.
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BREAKING NEWS
$250B in California Fraud
Hot Off The Presses…
California Republican Party Seeking Emergency Injuction
California DEI Education Continues Despite Presidential Executive Order to End It
California public schools and colleges are continuing to teach and require diversity, equity, and inclusion (DEI) coursework and programs even after President Trump signed an executive order aimed at ending DEI initiatives across federal agencies and federally funded institutions.
The January 2025 executive order directed the Department of Education to eliminate DEI mandates, language, and related workforce policies as part of a broader effort to end what the administration calls discriminatory or wasteful programming.
In response to the directive, the Department of Education set a deadline for schools to remove these programs or risk losing federal funding.
However, in California, Democratic leaders and local education systems have largely ignored the federal push and maintained DEI instruction as part of coursework and campus culture.
For example, students at community colleges are reportedly receiving mandatory assignments labeled under DEI or ethnic studies despite the national directive to end such programming.
This ongoing divergence highlights deep political and ideological differences between state education policies in California and the priorities set by the federal government.
Petition to Save Prop 13 Making Progress
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Refresher on Fool’s Gold
WHAT YOU NEED TO KNOW:
The book titled Fool’s Gold: The Radicals, Con Artists, and Traitors Who Killed the California Dream and Now Threaten Us All devotes a chapter to examining Governor Gavin Newsom’s historical connections to China and individuals with alleged ties to the Chinese Communist Party.
The book claims that while serving as San Francisco mayor, Newsom embraced support from the Chinese community and helped launch a nonprofit initiative — known as ChinaSF — that reportedly became a vehicle for CCP‑linked businesses to expand into California.
During a trip to China hosted by a businessman with deep CCP connections, Newsom later co‑founded ChinaSF with that same host to recruit businesses to the Bay Area, the book alleges.
According to the authors, the initiative brought in billions of dollars in promised economic activity, especially in sectors like solar and biotech, without sufficient vetting and amid possible national‑security concerns.
One example cited is praise for a solar company with links to the Chinese government, along with other enterprises that allegedly benefitted from tax incentives and access without clear accountability.
The book also highlights campaign contributions from a Chinese real estate firm whose owner was later convicted of bribery, framing Newsom’s China ties as part of a broader pattern of influence and alleged corruption in California political circles.
92-Page Report from California State Auditor… Billions in Taxpayer Funds Not Accounted For
Republicans Sound Alarm Over Alleged $250 Billion Fraud Crisis in California
WHAT YOU NEED TO KNOW:
Republican candidates and whistleblowers claim California is at risk of up to $250 billion in fraud, waste, and abuse across various government programs and taxpayer funds.
They argue that lax oversight, weak enforcement, and sprawling social services spending have created an environment where fraudulent schemes can thrive unchecked.
These GOP figures are basing their concerns on tips and examples from other states with well‑publicized fraud crises, suggesting similar vulnerabilities exist in California’s massive budget.
The claims come amid broader national controversy over fraud in public assistance programs, including high‑profile cases in Minnesota and other states that have drawn federal scrutiny.
Supporters of the view say that exposing and stopping fraud should be a top priority to protect taxpayers and public confidence.
Critics, including some state officials, push back against the alarmist framing but acknowledge that oversight and accountability challenges remain significant in the nation’s largest state.
MAGA Influencer Says He’s Received ‘Over 1,000’ California Fraud Tips
WHAT YOU NEED TO KNOW:
Conservative YouTuber and podcaster Benny Johnson announced that he plans to travel to California to investigate what he describes as “mind‑blowing” fraud linked to Democrats in the state, saying he has received over 1,000 tips alleging waste, fraud, and abuse.
He claimed that these tips came from ordinary citizens and local government sources, and that the alleged fraud could involve hundreds of billions of dollars tied to areas like transportation and housing.
Johnson’s assertions are part of a broader wave of right‑wing allegations about fraud in public assistance and government programs, which have gained attention amid high‑profile cases in other states.
Newsweek notes that Johnson provided no specific evidence for his claims, and that the outlet has not independently verified the tips or allegations he referenced.
California Governor Gavin Newsom has repeatedly dismissed broader fraud claims as unfounded, arguing that such narratives are politically motivated.
The article situates Johnson’s comments within ongoing national debates about fraud and accountability in government spending, highlighting the polarized responses to such claims.
Update on Prop 50
As a Reminder: Newsom’s Prop 50: A Pay to Play Power Grab 👇
The Town Hall 50: Ranking the Worst Journalists of 2025, Part 1, 2, and 3
The piece lists journalists ranked 1 through 50 in Townhall’s annual “Worst Journalists of 2025” series, highlighting media figures the author criticizes for their reporting or public commentary.
Each listed journalist is accompanied by a brief explanation of why they were chosen, often focusing on perceived bias, misleading narratives, or controversial statements made during the year.
The rankings include journalists from a range of major outlets and platforms, with selections based on coverage the author believes was demonstrably flawed or harmful.
The article emphasizes examples where reporting is said to have mischaracterized facts, promoted partisan viewpoints, or failed to hold powerful figures accountable.
The list is part of a broader criticism of mainstream media practices and is intended to spotlight what the author views as journalistic failures.
House Judiciary Report: LA FireAid Funds Went to Political Advocacy, Podcasters, Illegal Aliens, Salaries, Bonuses
WHAT YOU NEED TO KNOW:
A House Judiciary Committee report found that a portion of federal disaster relief funds intended for Los Angeles fire aid were diverted to political advocacy groups, podcasters, and other non‑firefighter expenses.
The investigation identified spending on salaries, bonuses, and services that critics say fall outside the core mission of wildfire recovery.
Among the recipients were organizations and individuals with political ties, raising concerns about misuse of taxpayer money and lack of oversight.
The report also highlights payments made to individuals identified as illegal immigrants, which opponents argue contradicts the intent of federal aid and state spending priorities.
Lawmakers involved in the investigation argue these findings reflect broader systemic problems in how fire‑related funds are allocated and monitored.
The revelations have prompted calls for tighter accountability and transparency in future disaster relief distributions.
Gov. Gavin Newsom’s ‘Great Leap Forward’ – DEI and Reparations Agriculture Land Seizure Scheme
WHAT YOU NEED TO KNOW:
Governor Gavin Newsom created the California Agricultural Land Equity Task Force through the 2022 state budget to develop recommendations on addressing what it calls an agricultural land equity crisis, focusing on disparities in land ownership among different groups.
The draft report from the task force includes proposals to increase access to farmland for historically excluded producers and land stewards, including tribal communities and socially disadvantaged farmers, through measures such as funding land acquisition and supporting land stewardship programs.
U.S. Agriculture Secretary Brooke Rollins sent a letter urging the state to abandon portions of the proposal, warning that some recommendations could violate constitutional protections and state laws that prohibit race‑based preferences.
Among the ideas under review are local ordinances affecting land purchases, programs that would assist certain demographic groups in acquiring land, and incentives targeted at minority farmers and tribes.
Critics argue that prioritizing land access based on group identity raises legal and ethical concerns about equal treatment under the law, while supporters frame the effort as addressing historical inequities in land access and tenure.
The task force’s work reflects a broader debate over how best to balance equitable land access with constitutional and property‑rights protections.
Former ‘Acting’ Labor Secretary Julie Su’s California’s Pandemic Fraud Must be Addressed
WHAT YOU NEED TO KNOW:
Former acting U.S. Labor Secretary Julie Su is calling for federal investigations into what she describes as widespread pandemic‑related fraud in California, particularly involving misuse of state unemployment insurance funds.
She argues that California’s system was overwhelmed during the pandemic and that inadequate safeguards allowed billions of dollars in improper or fraudulent claims to be paid out.
Su notes that the scale of fraudulent payments strained the state’s unemployment trust fund and could have long‑term consequences for employers and taxpayers.
She emphasizes the need for accountability and stronger fraud‑prevention measures to protect both workers and businesses from future abuses.
Su’s remarks reflect broader concerns at the federal level about how pandemic relief programs were administered and monitored across different states.
Addressing these issues, she says, is essential to restoring trust in the unemployment insurance system and ensuring proper use of public funds.
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Guest Column
Trump Arrests Maduro, and the Axis of Evil is Crumbling
WHAT YOU NEED TO KNOW:
Nicolás Maduro, president of Venezuela, was arrested in an operation linked to the United States, marking a significant development in U.S.–Venezuela relations.
Maduro has led Venezuela through years of political and economic crisis and is allied with governments that have historically opposed U.S. policy in the region.
The operation is portrayed as part of a broader shift in geopolitical alignments, with longstanding alliances among several authoritarian‑leaning regimes facing pressure.
The report connects Maduro’s removal to wider patterns of change in countries with historically adversarial relationships with the United States.
It notes potential impacts on corruption and illicit activities associated with Maduro’s government, suggesting disruption of entrenched networks.
This development is framed as a noteworthy moment in foreign policy with implications for regional stability and international alliances.
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The underbelly of California politics turned inside out this week.
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