Gov. Gavin Newsom's administration is seeking an additional $1 million in taxpayer funds to bolster its legal defense against ongoing federal investigations into California's Medi-Cal program, including probes into hospice fraud and healthcare coverage for undocumented immigrants. This request, alerted to state legislators last week, brings the total allocated for such legal defenses to $2.25 million.
The new funding request is channeled through the Department of Finance and follows previous allocations of $500,000 in September 2025 and $750,000 in April. The state's move comes after the House Oversight Committee launched an investigation in March, demanding records from Newsom regarding the state's oversight of hospice providers. Lawmakers have expressed concern over the administration's internal controls to prevent and detect fraud within these programs.
Republican Assemblymember David Tangipa criticized the governor's request, stating, "Newsom might want to get Medi-Cal under control before he starts measuring the drapes anywhere else." He added, "California lost hundreds of millions to hospice fraud, and now taxpayers are being forced to pay a million-dollar legal bill to defend the mess."
Newsom's office has characterized the congressional probes as politically motivated, particularly targeting states that did not support former President Trump. A spokesperson for the governor stated, "Despite the transparent political motives of these investigations... California respects the gravity of congressional investigations and is working in good faith to be transparent and responsive to congressional requests."
The $1 million allocation is drawn from a $25 million state fund established for legal defense efforts related to the Trump administration. A spokesperson for the Department of Finance described the appropriations as a response to "legal fishing expeditions that Washington has waged against California."
Federal lawmakers have alleged that state officials failed to adequately monitor hospice operators who allegedly billed Medicare fraudulently for non-existent patients. The House Oversight Committee's chairman, Rep. James Comer, R-Ky., wrote to Newsom expressing concern that "your administration does not have sufficient internal controls to prevent and detect fraud and is not conducting proper oversight of these hospice programs."
In April, California Attorney General Rob Bonta announced charges against 21 individuals accused of submitting approximately $267 million in fraudulent claims for hospice services. Authorities stated that the defendants used stolen identities to enroll individuals, who were unaware of their enrollment, in Medi-Cal and billing the program for services never rendered. In response, California has implemented a moratorium on new hospice licenses and revoked hundreds of existing ones.
Despite these measures, critics and federal officials argue that California has a history of overlooking fraud during Newsom's tenure. The Department of Finance indicated that the governor's funding request would be considered for approval no sooner than ten days after its notification to lawmakers.