Vice President JD Vance said Thursday that the scope of fraud uncovered in California has reached an estimated $7 billion, describing the problem as far worse than what has been found in Minnesota and pointing to deeper issues in Democratic-led states.
Speaking in an interview, Vance said he was briefed by the head of the U.S. Small Business Administration, who delivered what he described as shocking information about the scale of fraudulent activity in California. According to Vance, the numbers coming out of the Golden State dwarf similar cases elsewhere.
“I think we have a fraud problem that is much worse in California than it is in Minnesota,” Vance said. He added that while Minnesota has drawn attention in recent months, the situation in California represents a much larger and more troubling pattern.
Vance emphasized that the issue is not isolated. “This is unfortunately a problem that is much bigger than Minnesota,” he said, suggesting that California has become a focal point for widespread abuse involving large sums of money.
Beyond fraud, the vice president also addressed immigration enforcement, arguing that resistance to federal authority is largely concentrated in Democratic-controlled states. He said efforts to block or undermine immigration enforcement are not random, but instead reflect a broader ideological stance among blue-state governments.
Vance described the situation as escalating tension between some state governments and the federal government. He said certain Democratic-led states appear to be engaged in what he characterized as a “small-scale civil war” with federal authorities over immigration policy.
According to Vance, these states are not simply disagreeing with federal immigration enforcement but are actively working to obstruct it. He suggested that this resistance creates confusion, weakens the rule of law, and makes it harder for federal agencies to carry out their responsibilities.
The vice president’s remarks reflect growing frustration within the administration over what it sees as selective compliance with federal law. Vance argued that when states refuse to cooperate with enforcement efforts or allow fraud to go unchecked, the consequences are felt nationwide.
By highlighting California specifically, Vance underscored what he described as a pattern of mismanagement and ideological defiance in some of the country’s largest and most influential states. He indicated that the sheer scale of the fraud uncovered there raises serious questions about oversight and accountability.
Vance did not outline specific next steps during the interview, but his comments made clear that the administration views the issue as urgent. The discovery of billions of dollars in fraud, combined with ongoing clashes over immigration enforcement, has become a central concern for the White House.
The vice president’s comments also signal a broader political contrast, as the administration continues to frame blue-state governance as permissive toward fraud and hostile to federal law enforcement. Vance’s warning suggests that California’s problems are not merely local, but part of a national challenge that the administration believes must be confronted head-on.
