A Federal Strike Team Becomes the Latest Embarrassment
If there were an Olympic sport for losing track of public money, California might be standing on the podium right now, and Governor Gavin Newsom would be waving to the crowd. The latest example is so serious that the federal government is stepping in directly. The U.S. Department of Labor is sending a specialized strike team to California to investigate fraud, improper payments, and financial mismanagement in the state’s unemployment insurance program.
Labor Secretary Lori Chavez-DeRemer did not mince words.
“Financial issues and potential fraud in California’s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs. This ends now.”
At the center of the investigation is a staggering reality. California’s unemployment trust fund is empty. The state borrowed about $21 billion from the federal government just to keep benefits going, and employers are now paying higher taxes to repay the debt. Meanwhile, state auditors found that weak controls allowed more than $30 billion in potentially fraudulent claims to be paid during the pandemic years.
That is not a rounding error. That is a catastrophic collapse of oversight.
Even worse, auditors said the state cannot reliably quantify improper payments, meaning officials still do not fully know how much money disappeared or where it went. When a government cannot even measure its losses, it is not just incompetence. It is systemic failure.
And all of it happened under Newsom’s watch.
The Pattern: Spend Billions, Produce Confusion
Critics argue the unemployment disaster is not an isolated mistake. It fits a pattern that has defined Newsom’s tenure. Massive spending announcements followed by weak results, missing accountability, and explanations that sound more like press releases than solutions.
The most obvious example is homelessness. California has spent roughly $24 billion over five years attempting to address the crisis. Yet the state remains the epicenter of homelessness in the United States, with sprawling encampments visible across major cities. Investigators say the state cannot fully account for where large portions of that money went, and federal probes have already produced criminal charges against individuals accused of diverting housing grant funds for personal gain.
For taxpayers, the question is painfully simple. If tens of billions of dollars were spent, why are the tents still everywhere?
The unemployment scandal now raises the same question. If tens of billions were distributed, why did so much end up in the hands of fraudsters?
At some point, leadership matters.
Public Safety Policies That Defy Common Sense
Financial mismanagement is only one part of the criticism. Federal immigration authorities are now warning that California is preparing to release more than 33,000 criminal illegal immigrants from custody without notifying federal officials, despite active ICE detainers requesting transfers for deportation.
Acting ICE Director Todd Lyons described the situation bluntly.
“Governor Newsom and his fellow California sanctuary politicians are releasing murderers, pedophiles, and drug traffickers from their jails back into our neighborhoods and putting American lives at risk.”
The numbers attached to those releases are alarming. According to federal officials, the group includes hundreds of homicide cases, thousands of assaults and burglaries, drug offenses, weapons crimes, and sexual predatory offenses.
Federal officials say this is not confusion or bureaucracy. It is a deliberate policy choice.
Critics argue that releasing offenders instead of transferring them to federal custody reflects the same governing philosophy seen in fiscal issues. Ideology first, consequences later.
Wildfires and the Cost of Neglect
Then there is the wildfire crisis, which has become a recurring nightmare in California. The Palisades Fire in Los Angeles County burned more than 17,000 acres, destroyed thousands of structures, forced nearly 180,000 evacuations, and killed at least five people. It has been described as one of the most destructive disasters in the region’s history.
President Donald Trump blamed Newsom directly, calling the devastation the result of “gross incompetence and mismanagement.” Trump argued that water management decisions and environmental priorities left the state vulnerable.
Former Interior Secretary Ryan Zinke focused on forest management failures.
“Wildfires are indicative of not managing for years,” he said. “It doesn’t matter your stance on climate change… if you don’t manage the forests, you’ll face disasters like this.”
Critics say Newsom’s consistent focus on climate change has served as a convenient explanation while practical mitigation efforts such as clearing fuel loads, controlled burns, and infrastructure improvements lagged behind.
Meanwhile, communities burned.
A Leadership Brand Built on Image – Without Substance
Newsom’s critics often point out that he excels at announcements. Press conferences, sweeping promises, new initiatives, and carefully framed messaging are frequent. What appears less consistent is execution.
The unemployment scandal shows billions lost. Homeless spending shows billions spent with limited visible improvement. Immigration policies show controversial public safety risks. Wildfire management shows recurring disasters that critics say were worsened by years of neglect.
Each issue alone would be politically damaging. Together they create a narrative that opponents believe is devastating.
There is also a growing sense of disbelief that someone with this record could be considered a serious presidential contender. The argument is simple and blunt. If a governor cannot manage programs inside one state without massive losses or crises, why would voters trust him with the federal government?
The Political Reality
Newsom’s office has defended his administration, pointing to fraud prevention efforts and arrests of individuals abusing programs. Supporters argue that California faces unique challenges because of its size and complexity.
But critics counter that complexity does not excuse failure. In fact, it demands stronger leadership.
The federal strike team investigating the unemployment program sends a clear signal. Washington does not trust California to fix this on its own.
That is not a good look for a governor with national ambitions.
At this stage, Newsom’s political brand risks becoming unintentionally comedic. Another press conference. Another billion dollars. Another crisis. Another explanation.
If this were a corporate CEO, shareholders would have demanded a replacement long ago.
The tragedy is that the consequences are not theoretical. They are real. Higher taxes for employers. Fraud losses for taxpayers. Crime concerns for communities. Homes destroyed by fires. Homeless encampments growing despite massive spending.
Leadership is ultimately judged by results.
Right now, the results are brutal.
And the idea that this record could serve as a stepping stone to the presidency is not just questionable. For many observers, it is absurd.
