California’s Government Fails Taxpayers with Fraud and Cost Overruns

Rep. Kevin Kiley, R-Calif., has sharply criticized widespread fraud and fiscal mismanagement in California during a recent interview, pointing to billions of dollars in taxpayer losses and stalled infrastructure projects.

Kiley cited a June report showing that more than one-third of community college applications in the state were fraudulent, a scheme he said siphoned over $10 million in federal financial aid and millions more in state funds.

He argued the losses extend beyond waste, instead fueling organized crime. “The taxpayers are losing, and the money doesn’t vanish—it ends up in the hands of fraudsters,” Kiley stated, referencing pandemic-era unemployment fraud he estimated cost at least $32 billion, much of it tied to criminal networks.

Kiley also criticized California’s high taxes, noting residents continue to pay more while receiving fewer public benefits.

He singled out the state’s long-delayed high-speed rail project as emblematic of government failure. Despite nearly two decades of planning and tens of billions in spending, no passenger rail line has been completed. Kiley said costs for the project have ballooned from initial estimates to over $100 billion, with reports questioning whether it will be finished this century.

Additionally, Kiley criticized San Francisco officials over discussions of a reparations program, arguing the city faces major budget deficits and cannot afford such initiatives.

Kiley stated that these issues reflect broader governance problems in California, with taxpayer frustration growing as fraud and cost overruns continue without accountability.