If you thought Minneapolis was a hotbed of corruption, brace yourself for what's unfolding in California. The FBI's recent investigations have uncovered a staggering $24 billion in squandered funds, with Governor Gavin Newsom's fingerprints all over it. Federal investigators are demanding answers, especially from Newsom himself. Here's the shocking story of financial mismanagement and deceit in the Golden State.
- California's homeless crisis is spiraling out of control, with 30% of America's homeless population residing there, despite the state housing only 10% of the nation's population.
- A mind-boggling $24 billion was earmarked for homelessness programs, but California stopped tracking the funds in 2021, leading to a complete lack of accountability.
- Federal investigators are now probing the misuse of funds, with serious allegations of corruption and negligence aimed squarely at Governor Newsom.
California is home to 187,000 homeless individuals, making up a whopping 30% of the nation's homeless population, even though the state represents just 10% of the country California's homeless population. Shockingly, half of America's unsheltered homeless sleep on California’s streets. Since 2013, homelessness in the state has surged by an alarming 53%. Despite Governor Newsom's repeated pledges since 2008 to address this crisis, the situation has only worsened.
The California State Auditor's 2024 report revealed a bombshell: the state spent $24 billion on homelessness programs but halted tracking those funds in 2021. In essence, California has no idea where the money went, with no accountability or tracking systems in place. The agency responsible for these programs, the California Interagency Council on Homelessness, stopped collecting data on key initiatives. Simply put, $24 billion in taxpayer money vanished into thin air, and there's no evidence it helped a single homeless person. Evidence of the money's misuse is emerging, and it's not pretty. Los Angeles, for instance, spent over $800,000 per homeless housing unit. Imagine what $800,000 could buy in housing elsewhere! Yet in LA, that’s the cost to build a studio apartment for a single homeless person. Despite these exorbitant expenses, the homeless population continues to rise. Proposition HHH promised 10,000 homeless housing units but delivered fewer than 2,000 over five years. The average cost per unit ballooned from $375,000 to nearly $600,000, with some projects hitting $837,000 per unit. The real story lies in the rampant corruption. Former LA City Councilman José Huizar is serving 13 years in prison for a pay-to-play scheme involving $1.5 million in bribes. His assistant, George Esparza, delivered bribe money hidden in liquor boxes to Huizar's home. Another official, former Deputy Mayor Raymond Chan, received 12 years for his corrupt activities. This "homeless industrial complex" saw funds flow from state to counties, counties to cities, cities to nonprofits, and vanish along the way, leaving the intended beneficiaries out in the cold. Federal investigators are now on the case, focusing on the individual who started it all. In April, U.S. Attorney Bill Es-Say-lee announced the creation of the Homelessness Fraud and Corruption Task Force. The FBI, IRS, and HUD Inspector General are investigating the misappropriation of federal tax dollars meant to alleviate homelessness across seven Southern California counties. A court-ordered audit revealed a complete absence of financial controls in LA’s homeless services. Just weeks ago, the DOJ filed fraud charges against two LA real estate developers tied to homeless housing funding, and the investigation is just beginning. Governor Newsom should be very uneasy. Newsom faces serious allegations of criminal negligence. He is accused of appointing unqualified officials who failed to verify basic financial documents. For instance, he appointed Gustavo Velasquez as Director of the California Department of Housing and Community Development, overseeing the $4 billion HomeKey program. Under Velasquez's leadership, fraudsters stole millions from HomeKey grants, similar to Minneapolis's Feeding the Future fraud. Furthermore, Newsom is accused of obstructing oversight by vetoing bipartisan transparency legislation that could have exposed the fraud much earlier. He vetoed Assembly Bill 2903, which would have required systematic tracking of California's $24 billion in homelessness spending. By blocking this bill, Newsom ensured that fraudulent activities continued unchecked. Newsom's actions also hint at political cronyism, with the HomeKey program becoming a cash grab for politically connected developers. Multi-million dollar contracts went to firms favored by Democrat politicians, including LA Mayor Karen Bass. The FBI is on the case, and agents have made it clear that if federal laws were violated, arrests will follow. The lesson here is clear: left-wing socialism breeds corruption. Systems in blue states concentrate wealth in the hands of a few, often those tasked with oversight. This corruption intimidates those who might fix the system, allowing it to perpetuate unchecked. In major Democrat-run cities, billions are lost to waste, fraud, and abuse. But as voters awaken to these corrupt systems, politicians like Newsom may see their political prospects vanish, much like the $24 billion. As these shocking revelations unfold, staying informed has never been more critical. If you want to keep up with the latest updates and insights, don't miss out! Visit turley.pub/news and sign up for our newsletter. Big things are always coming! © 2025 TurleyTalks.com. All rights reserved.
