
California taxpayers lost nearly half a billion dollars to Governor Gavin Newsom’s mismanagement, fueling fraud for dead people and a scrapped 911 system while President Trump restores fiscal sanity nationwide.
Story Highlights
- FCC audit exposes $4 million Lifeline fraud in California, subsidizing phones for 95,000 dead enrollees amid Newsom’s lax verification policies.
- State squanders $450 million on failed regional NG911 system since 2019, now pivoting to statewide redesign with ongoing delays.
- FCC Chairman Brendan Carr blocks California’s opt-out, demanding federal checks to ensure benefits go to living, legal Americans only.
- Bipartisan outrage grows over waste, eroding trust as public safety risks mount ahead of major events like the Super Bowl and Olympics.
Lifeline Fraud Targets Dead Enrollees
FCC Chairman Brendan Carr released an audit in early February 2026 revealing $5 million in federal Lifeline subsidies paid over five years for 116,000 dead enrollees across three opt-out states. California accounted for 80 percent, or about $4 million for 95,000 cases. The program, created in the 1980s under Reagan to aid low-income households, funds phone and internet services through telecom fees passed to consumers. Opt-out states like California skipped federal verification, enabling rampant duplicates and fraud. Newsom signed a November 2025 bill eliminating Social Security number requirements, easing access for non-citizens including undocumented immigrants. This move blocked federal oversight, prompting Carr’s public clash and accusations of political targeting from Newsom’s team.
FCC Blocks California Verification
On a Sunday in late January or early February 2026, the FCC halted California’s Lifeline opt-out process, mandating federal verification and SSN use. Upcoming reforms on February 18, 2026, aim to ban opt-outs entirely and restrict benefits to citizens only. Carr insists subsidies serve “living, legal Americans,” criticizing California for aiding illegals. Newsom’s administration calls the audit misleading and nationwide in scope, not a California scandal. Short-term disruptions force compliance, potentially saving $100,000 monthly by curbing fraud. Long-term, tighter rules set precedents for federal authority over state welfare programs, aligning with President Trump’s push for accountability after years of Biden-era overspending.
NG911 System Collapse Wastes $450 Million
Since 2019, California spent $450 million on a regional Next Generation 911 system deemed unworkable by 2025. Vendors like Synergem received $59 million and NGA 911 $104 million for the failed effort. Newsom promised modernization of outdated analog systems but delivered delays and opacity through Cal OES. The state now scraps the regional model for a statewide transition, appointing deputy Steven Yarbrough to oversee. Fire chiefs, led by Jeff Meston, express no faith in the process, citing public safety risks before mega-events. Democratic Sen. Laura Richardson demands fiscal discipline and adherence to budgets. Vendors protest the waste of over $163 million in contracts.
This pattern of California tech failures underscores government overreach and poor stewardship of taxpayer dollars, contrasting sharply with Trump’s border security victories that deported over 605,000 illegals and achieved negative net migration in 2025. Bipartisan critics highlight eroded trust and strained budgets from $455 million total waste across Lifeline and NG911. First responders face vulnerabilities, while consumers bear higher telecom fees. Newsom’s mismanagement damages his 2028 ambitions, validating conservative calls for limited government and individual responsibility.
FCC to Newsom: Hey, Where'd the $450 Million Go? https://t.co/AS0lSyCsXe
— The Countess In Cowboy Boots (@LooneyOldLady) February 11, 2026
Sources:
Washington Times: FCC battles California Gov. Newsom over free phone fraud
AOL: California wastes $450 million on 911 system
Governing: California spent $450 million on a new 911 system, now plans to scrap it
CalMatters: California tech 911 system failed








