$24 Billion Gone — Nobody Knows Where

A conservative social media influencer’s explosive testimony before Congress reveals California may be hemorrhaging billions more in taxpayer dollars than Minnesota’s daycare fraud scandal that shocked the nation.

Story Snapshot

Nick Shirley testified to House Judiciary Committee that California government fraud likely exceeds Minnesota’s $1.9 million daycare scandal
Shirley’s claims center on $24 billion in missing homelessness spending, $32.6 billion unemployment fraud, and a stalled $18 billion high-speed rail project
Republican Rep. Kevin Kiley amplified concerns while Gov. Gavin Newsom dismissed testimony as partisan attacks
No evidence supports claims of voter fraud—Shirley’s focus remains on welfare and government spending accountability

Congressional Testimony Exposes California Spending Crisis

Nick Shirley appeared before the U.S. House Judiciary Committee on January 21, 2026, presenting evidence that California’s government fraud problem dwarfs the Minnesota daycare scandal he previously exposed. The conservative influencer, known for undercover investigative videos, cited a 2023 state audit revealing $24 billion in unaccounted homelessness spending despite rising homeless populations. Representative Kevin Kiley questioned Shirley about systemic failures in California governance, highlighting the state’s inability to track massive expenditures. This testimony represents the latest effort by conservative voices to demand accountability from blue-state administrations long criticized for fiscal mismanagement and lack of transparency.

Minnesota Fraud Investigation Sets National Precedent

Shirley gained national attention in December 2025 after releasing undercover videos exposing Minnesota daycare facilities with over 90 violations receiving $1.9 million in Medicaid payments. These facilities appeared vacant or non-operational, raising questions about state oversight of taxpayer-funded programs. The Minnesota Department of Human Services faced scrutiny for delayed investigations and political roadblocks preventing fraud prosecution. This pattern of government agencies enabling waste through incompetence or deliberate inaction illustrates a broader problem plaguing states that prioritize ideology over fiscal responsibility. The Minnesota case demonstrated how influencer-driven investigations can force accountability where traditional media and government watchdogs fail.

California’s Record of Fiscal Failures

Beyond homelessness spending, Shirley highlighted California’s $32.6 billion confirmed unemployment insurance fraud during the COVID era and 1.22 million fraudulent community college applications. The state’s high-speed rail project, originally budgeted at billions, remains stalled after consuming over $18 billion with minimal progress. A $650 million 911 service upgrade was scrapped entirely, representing another example of taxpayer money vanishing without results. These failures reflect decades of one-party control prioritizing progressive pet projects over basic government functions. For California taxpayers watching their communities deteriorate while politicians claim budget constraints, this testimony validates long-held frustrations about where their money actually goes.

Political Battle Lines Drawn Over Fraud Claims

Governor Gavin Newsom responded to Shirley’s testimony by launching a political counterattack, creating a tracker focused on President Trump’s pardons rather than addressing the fraud allegations. Newsom’s deflection tactics, dismissing Shirley and collaborators Benny Johnson and influencer Ben Sortor, exemplify the progressive playbook of attacking messengers instead of confronting uncomfortable truths. Representative Kiley expressed anticipation for Shirley’s forthcoming California investigation results, noting that state audits confirmed accountability failures. The partisan divide illustrates how Democrats protect failed governance by weaponizing accusations of political motivation, while Republicans amplify citizen journalists exposing what establishment media ignores. This dynamic empowers ordinary Americans frustrated with government waste to demand answers through new media channels bypassing legacy gatekeepers.

Shirley’s work, while criticized by some former fraud investigators as lacking forensic rigor, effectively raises public awareness about systemic failures enabling massive taxpayer losses. His testimony catalyzed congressional scrutiny of Medicaid and welfare programs, with Benny Johnson soliciting public tips for ongoing California investigations. The long-term implications could include formal audits or district attorney probes similar to those that eventually addressed Minnesota unemployment fraud after state inaction. For conservatives, this represents a victory in forcing accountability through alternative media when government institutions fail their oversight responsibilities. Whether formal investigations materialize remains uncertain, but the spotlight on California’s fiscal recklessness serves taxpayers tired of watching billions disappear into bureaucratic black holes.