Gov. Gavin Newsom (D-CA) is facing mounting scrutiny over alleged fraud and costly, delayed projects as he enters his final year of governorship.
Federal officials have raised concerns about widespread abuse in California’s hospice sector, with the Centers for Medicare & Medicaid Services informing Congress that investigators have revoked billing privileges for roughly three-fifths of newly enrolled state hospice agencies.
MOST NEWLY ENROLLED CALIFORNIA HOSPICE AGENCIES FLAGGED FOR FRAUD, CMS SAYS
During a Tuesday hearing before the House Energy and Commerce Subcommittee on Oversight and Investigations, CMS chief Kimberly Brandt said the agency is working to safeguard taxpayer money.
“If CMS was a country, it would have the 16th largest GDP in the world,” Brandt said. “With that responsibility comes a clear moral mandate to protect taxpayer dollars and protect the beneficiaries who rely on those programs.”
Brandt added that roughly 35% of hospice agencies in the state have been flagged for corrective action.
At the same time, state leaders are facing criticism over high-profile infrastructure projects plagued by delays and high costs.
One example is California’s wildlife crossing over the 101 Freeway in Southern California. The project, intended to help animals safely cross the busy freeway, broke ground in 2022 with an initial budget of $54 million and a slated completion date in 2025. Officials later estimated total costs at $92 million, which includes private funding.
Now behind schedule, the project is not expected to be complete until this fall and is approximately $21 million over budget.
Another incomplete project is the long-promised high-speed rail line connecting San Francisco and Los Angeles. The project was proposed in 2008 and slated to be completed by 2020. Yet, not a single track has been laid.
Fraud has also been at the top of the minds of many in the Trump administration.
GUY BENSON: CALIFORNIA’S TRAINS TO NOWHERE
On Monday, the president signed an executive order establishing a task force — led by Vice President JD Vance — to combat waste, fraud, and abuse in federal programs.
“President Trump is restoring the integrity of taxpayer-funded safety-net programs that have been exploited by illegal aliens, criminals, foreign gangs, bureaucrats, and non-governmental organizations,” the order states.
