Gavin Newsom’s $30 Billion Fraud Magnet

Christopher F. Rufo, Kenneth Schrupp, City Journal

California Governor Gavin Newsom is embroiled in a national fraud scandal. Thus far, much of the coverage has focused on alleged schemes related to unemploymentinsurance, hospice care, and food stamps. In this exclusive investigation, we shine a light on one of California’s largest initiatives: the In-Home Supportive Services Program, or IHSS, which pays family members and other individuals to provide home-based care for the elderly and disabled—at a cost of nearly $30 billion per year.

On the surface, IHSS presents itself as an instrument of compassion, directing billions to caregivers who help with cooking, personal care, laundry, and other daily needs inside recipients’ homes. But a growing number of experts and critics argue that the program is rife with fraud, losing roughly an estimated $6 billion to $12 billion yearly to scammers. Meantime, the state’s powerful home-care unions collect more than $149 million in membership dues, funneling money into the political network supporting Newsom and California Democrats.