State Politicians · State Capacity & Accountability · Budgets & Fiscal Policy

Matt Mahan’s Radical Idea: Stop the Fraud First

$30 billion stolen in unemployment fraud alone. California’s gubernatorial candidate says fix it before raising taxes.

By Garry Tan · · 4 min read

San Jose Mayor Matt Mahan announces his run for California governor. A mailman's son who actually reduced homelessness by 23% - not by making speeches, but by building 1,000 shelter beds. Photo: @rajmathai/NBC Bay Area

Source: x.com

TL;DR

San Jose Mayor Matt Mahan is running for governor on a simple, radical promise: stop the billions in government fraud before asking taxpayers for more. He’s the only candidate with actual results to back it up.

If Matt Mahan wins governor of California, suddenly the boom loop begins statewide. That’s not optimism—it’s math. $20-30 billion stolen in fraudulent unemployment claims while politicians debate wealth taxes. The state auditor labeled California the “fraud capital” with up to $76.5 billion in potential taxpayer exposure. And Mahan is the only candidate who’s actually delivered results instead of speeches.

$30 Billion Stolen, Zero Accountability

“Ask government to do better before we ask taxpayers to pay more.” That’s Mahan’s position, and it’s not complicated—it’s just unheard of in Sacramento.

Mahan on CNBC laying out California's fraud crisis: $20-30 billion stolen in unemployment fraud alone, and the political class wants to raise taxes instead of fixing it.·Source: x.com

The fraud numbers are staggering. One-third of California community college applications are fraudulent—people gaming financial aid. $2 billion in homeless spending is unaccounted for in Los Angeles alone. Fifteen nonprofits are under investigation in San Francisco since 2022. The top 1% already pay 40% of California’s income tax revenue. The problem isn’t that we don’t have enough money. The problem is the money keeps disappearing.

The Anti-Politician: Mailman’s Son Who Delivers

Mahan grew up in Watsonville. His dad was a mailman, his mom a teacher. They couldn’t afford tuition at Bellarmine, so he worked the maintenance crew summers and drove four hours daily from Watsonville to San Jose just to attend. He went to Harvard—was dorm mates with Mark Zuckerberg—but he didn’t come from tech money.

s Helping Neighbors
Matt Mahan with his family. His wife told him "our state needs you"—and she's right.·Source: x.com

And here’s what separates Mahan from every other California politician: he actually fixed something. Under his leadership, San Jose reduced unsheltered homelessness by 23%—from 5,100 to under 4,000. He built 1,000 shelter beds. He got homeless people into treatment. Not a task force. Not a commission. Actual results.

Competence Over Clout-Chasing

Competence and service, not clout chasing culture war. It is what CA needs.

Politico reports that Mahan calls out the “exact line of thinking that leads to government that spends more and accomplishes less.” He uses technology to fill potholes faster and make communities safer. Basic competence as a revolutionary act—that’s where California is now.

The contrast with Newsom couldn’t be starker. One campaigns for president while California burns (literally). The other built shelter beds while critics said homelessness was unsolvable.

The Boom Loop Starts Here

The tech exodus threat is real. According to David Friedberg, private polling shows 80-90% of affected wealthy individuals have already left California in 2025 or will leave in 2026 if the wealth tax passes. That could represent $2-2.5 trillion in assets leaving and $20 billion in annual state revenue lost.

Mahan offers a different path: close loopholes AND cut waste. Protect the innovation economy instead of driving it out. Keep California as the innovation capital while actually serving residents.

Look at his record. Matt is very, very different.

California doesn’t need another politician who gives good speeches about equity while billions disappear into fraud. It needs a mailman’s son who actually fixed homelessness in his city. Matt Mahan is running for governor. This is California’s shot at competent leadership. Don’t miss it.

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Read our full breakdown on why Matt Mahan is California's last chance

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