California Gov. Gavin Newsom used his final State of the State address Thursday to spotlight the state’s court fights with the federal government, saying the state has filed dozens of lawsuits against the Trump administration.

The Democrat framed the legal battles as a dispute over presidential authority, telling lawmakers and attendees that "no one, particularly the president of the United States, stands above the law."

"We’ve gone to court and, of course, protect our people, pushing back against this executive overreach," Newsom said.

The governor pointed to litigation filed during a special session and tied the legal efforts to what he described as federal actions that harmed Californians.

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"Fifty-two lawsuits have been filed, funded by you, by the way, in this special session that all of you led," Newsom said, adding that the cases involved "about $168 billion in illegally frozen federal resources that belong to our schools, that belong to our hospitals, that belong to our seniors."

Newsom said the court strategy has already produced results.

"We have won the request for emergency relief," he said, adding that California has "affirmed the Constitution of the United States as the supreme law of the land."

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Addressing President Donald Trump, Newsom said, "You can’t cut off critical food assistance for millions of people," adding, "You can’t send the military into American cities without justification, and you cannot cruelly and illegally cut off funding for medical research, homeland security, or disaster response."

Newsom's emphasis on legal challenges comes as the Trump administration has launched a federal probe into alleged fraud tied to California programs, including homelessness spending, with a top federal prosecutor publicly criticizing the state’s oversight. 

Newsom’s office has rejected those accusations, saying the governor has blocked fraud and protected taxpayers. Later in the address, Newsom turned to homelessness and urged counties to take a more aggressive approach.

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"So I say this with love and respect to the counties — no more excuses. It’s time to bring people off the streets and out of encampments," he said.

Newsom defended California’s high-speed rail project as well, calling it "the nation’s first high speed rail system."

"Full environmental clearance is done," Newsom said, while claiming "more than 60 miles of guideway have been completed ready for immediate track lane in the Central Valley."

On housing, Newsom criticized large investors, warning about "institutional investors that are snatching up homes by the hundreds and thousands at a time."

"These investors are crushing the dream of homeownership," he said, adding, "I think it’s shameful that we allow private equity firms… become some of the biggest landlords here in our cities."

Republican leaders responded critically to Newsom’s remarks.

California Senate Minority Leader Brian Jones called the address an "airbrushed spin job," accusing the governor of "working hard to pull the wool over the eyes of the nation."

Assemblyman James Gallagher likewise dismissed the speech as "more of the same," arguing it was time for what he described as a "third wave politics" of both parties working together to solve California’s problems.

The statewide election to replace term-limited Gov. Newsom is scheduled for November 2026.

Newsom’s office did not provide additional comment beyond clarifying the lawsuit figure to Fox News Digital regarding Thursday's State of the State address. 

Fox News Digital's Madison Colombo contributed to this story.

Treasury Secretary Scott Bessent said Thursday that President Donald Trump’s proposed $1.5 trillion boost in defense spending would be achievable if the federal government can successfully claw back money lost to fraud, waste and abuse, pointing to welfare fraud investigations as a potential funding source.

Speaking at the Minnesota Economic Club, Bessent said the Treasury Department is intensifying efforts to recover taxpayer dollars lost to welfare fraud, describing Minnesota as a focal point of ongoing investigations tied to federally funded programs.

"Minnesota, unfortunately, is ground zero for what may be one of the most egregious welfare scams in our nation’s history to date," Bessent said.

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Bessent said recovering those funds could help finance Trump’s proposal to raise U.S. military spending to a cool $1.5 trillion.

"Yesterday, President Trump announced he was considering a $500 billion increase in defense spending," Bessent said. Asked whether the government could afford it, he replied: "Yes, if we can get the money back from fraud."

Pressed on whether the recovered funds would be substantial enough to meaningfully increase defense spending, Bessent said they would.

The revelation comes amid a sweeping fraud scandal in Minnesota that has drawn national attention and is estimated to involve at least $9 billion in misused funds. Minnesota Gov. Tim Walz, a Democrat, announced Monday that he will not seek re-election amid growing scrutiny over the state’s handling of the case.

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"Under Governor Tim Walz, billions of dollars intended for families in need, housing for disabled seniors and services for children were diverted to benefit fraudsters," Bessent said. "I am here this week to signal the U.S. Treasury's unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state," he added.

Bessent said the administration views aggressive fraud enforcement as a key component of its broader effort to rein in government waste while funding national security priorities without raising taxes.

Turning to Minnesota’s future, Bessent said the state had lost its way in recent years but could regain its standing under a different policy approach.

"For decades, Minnesota led the Midwest as a hub for culture, business and innovation," he said. "But it doesn’t have to be this way. President Trump’s hope, and ultimately his invitation, is that Minnesota becomes a North Star state again."