California Governor Gavin Newsom didn’t hold back this weekend, slamming Vice President JD Vance after Vance accused him of ignoring fraud issues plaguing the Golden State. “I’d love it if Gavin Newsom had a come-to-Jesus moment,” Vance quipped during a Fox News interview, suggesting that if Newsom took fraud seriously, they could collaborate.
Vance’s comments came hot on the heels of his announcement about a staggering $1.3 billion Medicaid funding deferral aimed at California, part of his newly minted anti-fraud task force. This initiative, according to Vance, is all about reclaiming taxpayer dollars for struggling Americans.
Newsom, a frequent target of Republican ire, shot back on social media, accusing Vance of spreading lies about California’s robust anti-fraud measures. “JD keeps lying about California's aggressive fight against fraud. We’ve walked the walk with nation-leading fraud prevention and have protected billions,” he fired off on X. “Meanwhile, JD’s boss is pardoning convicted fraudsters and literally stuffing his pockets with YOUR tax dollars.”
In a twist, Dr. Mehmet Oz, the head of the Centers for Medicare and Medicaid Services, claimed that the administration was making the “largest deferral we’ve ever made” in Medicaid funds, citing questionable expenditures in California’s home care program. However, he failed to provide solid evidence of documented fraud.
“We’d like the state to at least come to the table and explain to us how these outlier payments have been generated,” Oz stated, but Newsom’s office quickly countered that the growth in their home care program is due to keeping more people out of costly nursing homes.
Newsom’s retort didn’t stop there. He pointed out that while he’s fighting fraud, Trump has been busy using his presidential pardon power to free numerous individuals convicted of fraud-related crimes. In May 2025 alone, Trump pardoned over two dozen people, including political allies and reality TV stars.
Among those pardoned was Charles Scott, who was convicted for his role in defrauding investors in Ohio. Also on the list was former Connecticut Governor John Rowland, who faced election fraud charges. The list goes on: Trump even pardoned Rep. Michael Grimm, who resigned after pleading guilty to felony tax fraud.
Newsom emphasized that while his state is tackling fraud head-on, Trump’s actions tell a different story. The former president himself was convicted in 2024 on multiple counts related to hush money payments to adult actress Stormy Daniels, yet his sentencing remains indefinitely postponed following his re-election.
As the battle rages on between Newsom and Vance, one thing is clear: the stakes are high in this political showdown over fraud allegations and accountability in government spending.
