Governor Gavin Newsom Announces California Blocked More Than $6 Billion in Tax Fraud Over Eight Years

Kathakali Nandi
Kathakali Nandi is a news writer with more than 12 years of experience and a degree in Print Journalism. She has worked with several leading media...
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Governor Gavin Newsom. Image Source: Governor Gavin Newsom/Website

The California Franchise Tax Board (FTB) has stopped more than $6 billion in tax fraud over the past eight years, Governor Gavin Newsom announced on February 25, 2026.

The protected revenues help fund the state’s schools, public safety operations, and essential services, according to the governor’s office.

Of the total amount prevented, $579 million in state revenue was protected in fiscal year 2024–25 after officials identified and blocked improper refunds.

Newsom attributed part of the success to strengthening education on FTB’s website, which provides taxpayers with guidance on identifying scams, protecting personal information, filing securely, and other prevention and detection techniques.

“California is protecting the most progressive tax system in the nation, which helps support our most vulnerable and provides equity for all,” Newsom said. “When you expand refunds and relief, you increase risk, and must be more vigilant.”

FTB’s fraud prevention and detection team helps to identify and prevent fraud involving improper claims for refundable credits, incorrect refundable payments, and tax-related identity theft. 

“At a time when California is facing real budget pressures and difficult fiscal tradeoffs, identifying and stopping waste, fraud, and abuse is not optional, it is essential,” said State Controller Malia M. Cohen, California’s Chief Fiscal Officer and Chair of the Franchise Tax Board.

FTB’s fraud program is committed to detecting, preventing, and responding to fraudulent activity while upholding system integrity and customer protection.

The tax board has invested in educating its employees to identify new fraud patterns, respond immediately to suspicious activity, and apply data-driven review practices, according to the statement. 

In addition, FTB has partnered with several state agencies and participated in the Information Sharing and Analysis Center (ISAC), which has increased visibility into national fraud trends and helped to amplify their efforts. 

FTB and its partners shared intelligence, improved threat detection, unified the approach to protecting public funds, and prevented hundreds of millions in fraudulent tax activity, the statement said. 

Tips for Taxpayers

Taxpayers should review online scam-avoidance tips and be particularly cautious with their tax, bank account, credit card, and other personal information. 

Scammers typically pose as IRS or FTB employees to deceive taxpayers into sending money or sharing information. Common scams include text messages, calls, emails, fraudulent mail, and fake websites. 

FTB reminds taxpayers:

  • Not to reply to or click links in suspicious emails or messages. 
  • Not to download attachments.
  • If unsure, contact FTB directly to verify a request. 
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Kathakali Nandi is a news writer with more than 12 years of experience and a degree in Print Journalism. She has worked with several leading media organizations and reported on a range of beats, including national affairs, health, education, culture, business, and the hospitality sector. She specializes in writing engaging, detailed content and has written extensively about the U.S. hospitality industry. When she isn’t working, she’s usually buried in a book or happily obsessing over dogs.

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25 Comments

  1. After all the failures of this political conman…affair with his BFF’s wife, dining scandal during covid “epidemic”, Malibu fires, homelessness and rampant drugs in his home town, high speed rail that doesn’t exist, all the fraud being exposed and sanctuary cities, on and on and on…The lefty lib media machine has begun their reinventment of this guy to make a run for President. Never ceases to amaze me.

    • STEVE – now do Trump. I mean seriously….. oh no! An alleged consensual affair between adults! That must be awful for you to hear about. Hey….. you hear about Trump and Epstein yet? Or how he was found to have raped a woman? Or how he bragged about sexually assaulting women? Yikes… you’re gonna be bigly mad when you learn about this Trump guy.

      • The article is about Newsom? Why do you and your cohorts have to spin every topic into something about Trump or MAGA?
        Stay on topic, your constant ranting about president Trump is old and over used, we get it.
        All the democrats have is hating Trump. That worked out great in the last election, run with that again. Oh wait . ..

        • KAPOSER – you may support defending child ra****s and being a racist POS, but when someone calls out Newsom for an “affair” and these other “controversies” (most of which are absolutely false), it’s important to point out the hypocrisy.

          Go use AI to learn what that word means.

          • Again, this is not about your hatred from Trump.
            Funny “most of which are false”, do you pick and choose which are true and false based on MSM?
            If you think Newsom is beyond being fraudulent you are in for a few rough years.
            The irony is obvious, Newsom is a dirtbag and you know it. But will still vote for him, like you did for Kamala.

  2. The issue is Newsom’s claim he prevented $6B of taxpayer money being defrauded. Show me the books and I’ll believe him. Otherwise, no go. It’s simply a lame comment. I can’t see how Newsom can save money in any way for us taxpayers.

      • “As of late 2025, California Governor Gavin Newsom’s net worth is estimated around $30 million, largely driven by investments in his PlumpJack Group hospitality businesses. He reported over $100,000 in revenue from his stake in the PlumpJack Estate Winery alone in 2024, with other assets including a blind trust worth over $1 million” (Forbes)
        That is one very profitable winery, funny thing is, never heard of it, never seen the brand anywhere.
        Interesting how he moved his interests business interests, including a wine and hospitality empire, into a blind trust, but continues to earn income from these assets. Why?
        If he is foolish enough to run for POTUS, all of his so called business dealings will be exposed.
        He is a fraud, and a snake salesmen. But please dems, run him for POTUS, it will be fun to watch!

  3. Jan 27, 2026 | Press Releases

    Washington, DC — Last week, Congresswoman Young Kim (CA-40) sent a letter demanding answers from Gavin Newsom after the Centers for Medicare & Medicaid Services (CMS) found California spent more than $1.3 billion in federal Medicaid dollars on non-emergency care for illegal immigrants.

    According to CMS, California claimed federal Medicaid reimbursements for services that are explicitly prohibited under federal law. Medicaid funds may be used for emergency care regardless of immigration status; however, CMS auditors found California used federal dollars for non-emergency care for illegal aliens, in violation of longstanding eligibility rules.

    “California just spent 1.3 billion taxpayer dollars on healthcare for illegal immigrants while seniors, disabled Americans, and low-income families are pushed to the back of the line,” said Rep. Young Kim. “While hardworking Americans were footing the bill, Gavin Newsom was galivanting around Switzerland following President Trump like a lost puppy. I’m demanding accountability from Governor Newsom and making sure the American taxpayer gets paid back what they’re due.”

    Federal law, including the Personal Responsibility and Work Opportunity Reconciliation Act, bars illegal aliens from accessing most federal benefits, including Medicaid. Despite this, California spent more than $3 billion on healthcare for over 1.15 million illegal aliens in 2020 alone — a figure that has almost certainly grown as the state’s illegal alien population has ballooned to nearly 2.3 million.

    CMS has requested California repay the $1.3 billion in improperly claimed funds. In her letter, Rep. Kim pressed Governor Newsom for answers on when the state will halt these illegal expenditures, how it plans to reimburse taxpayers, and what safeguards will be put in place to prevent future abuse.

    • KAPO – that’s not evidence of fraud.

      Try to answer questions with your own words. Pasting the text of an entire article about an inquiry as “proof” of fraud is lazy and stupid.

      I’d say do better, but you’ve had ample opportunity and, every time, you fail. I know 6th graders that could debate circles around you.

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