Three states led by Democrats—California, New York, and Massachusetts—have been at the center of a significant unemployment fraud issue since 2020. A recent survey by the Department of Government Efficiency (DOGE) revealed that these states accounted for nearly 80% of the improper unemployment benefits distributed during this period. The total amount of fraudulent payments identified so far stands at about $382 million.
The audit highlighted some shocking claims. For example, 24,500 individuals over the age of 115 received $59 million in benefits, while 28,000 children between the ages of 1 and 5 claimed a staggering $254 million. Even more bizarre, around 9,700 people with birth dates set in the future claimed $69 million. In one notable case, a person born in 2154 filed a claim for $41,000.
Most of the flagged claims came from California, New York, and Massachusetts, which together accounted for over $300 million in improper payments. Specifically, California was responsible for 68% of the unemployment benefits given to parolees identified by Customs and Border Protection (CBP) as being on a terrorist watchlist or having criminal records.
The findings have sparked criticism from the White House. Spokesman Harrison Fields pointed to this fraud as evidence of the poor governance in these Democratic-led states, suggesting it has contributed to a trend of people moving to Republican-led states like Texas and Florida. Fields argued that high taxes and mismanagement of taxpayer dollars have driven residents away from states with progressive policies.
California, New York, and Massachusetts are all firmly under Democratic control, with Democrats holding the governor’s office and majorities in the state legislatures. DOGE, which is part of the Trump administration’s initiative to reduce waste and fraud, has been working closely with various government departments to identify and eliminate unnecessary spending.
In a related announcement, Defense Secretary Pete Hegseth revealed $5.1 billion in cuts to Pentagon spending identified by DOGE. This significant reduction was described as a major step in addressing wasteful spending within the Department of Defense.
As investigations into unemployment fraud continue, the implications of these findings may influence public opinion and policy discussions in the coming months.