A Democratic state senator in California is pushing to eliminate criminal charges for most welfare fraud, raising concerns among critics about enabling more abuse of public funds. SB 560 would remove felony penalties for fraud under $25,000, turning most violations into administrative issues instead of crimes.
Key Facts:
- California State Senator Lola Smallwood-Cuevas introduced SB 560 to decriminalize most welfare fraud under $25,000.
- She claims current laws unfairly punish families for clerical errors and paperwork delays.
- In Los Angeles County, over 5,000 cases of welfare fraud were found, but only 200 were referred for prosecution.
- The DOJ says $181 million in EBT fraud occurred in California between 2022 and 2024, often involving foreign nationals using fake cards.
- In 2023, California’s food stamp program saw $1.3 billion in improper overpayments—more than 11% of total funds.
The Rest of The Story:
SB 560, authored by Senator Smallwood-Cuevas, seeks to shift how California handles lower-level welfare fraud.
If passed, the law would strip criminal penalties from fraud cases involving less than $25,000 and leave most enforcement up to local county officials through administrative channels.
Smallwood-Cuevas argues that the goal is to prevent vulnerable families from being treated as criminals for honest mistakes.
She says California’s safety net system often punishes the poor unfairly and that her bill promotes a “smarter, more humane” model.
However, law enforcement and fraud investigators warn that California’s welfare system is already a major target for theft.
With billions paid out each year, oversight gaps have allowed for large-scale fraud—often going unpunished due to lack of prosecution at the county level.
Federal agencies have had to step in to pursue major theft rings involving counterfeit EBT cards and organized criminal activity.
NEW: California Democrat state senator Lola Smallwood-Cuevas has introduced SB560, a bill that would decriminalize welfare fraud below an amount of $25,000. It would also prohibit prosecutions for attempted welfare fraud and would prohibit someone from being charged w/ perjury if… pic.twitter.com/nYnyfQm0vV
— Bill Melugin (@BillMelugin_) April 28, 2025
Commentary:
Only in California could lawmakers think the solution to fraud is to make it no longer a crime.
This is the same state that can’t manage to stop smash-and-grab robberies, and now it’s opening the door for criminals to abuse the welfare system with barely a slap on the wrist.
Decriminalizing welfare fraud under $25,000 doesn’t send a message of compassion—it signals to scammers that California is open for business.
If someone robs the system for $24,999, they’d just face paperwork? That’s insane.
It won’t deter fraud; it will encourage it.
California voters need to take a hard look at who they’re putting in office.
Senator Smallwood-Cuevas’ bill doesn’t fix welfare. It weakens it.
And it punishes the honest taxpayers—especially working-class Americans in other states—who fund SNAP and EBT benefits through federal dollars.
There’s no serious plan here to tighten controls, improve oversight, or hold fraudsters accountable.
Just a promise to be “more humane.”
But letting criminals walk isn’t humane—it’s reckless and irresponsible.
This is more of the same from a state government that prioritizes the feelings of rule-breakers over the needs of law-abiding citizens.
The real tragedy is that this kind of legislation keeps coming because voters keep electing lawmakers who see every problem through the lens of “oppression” instead of common sense.
The Bottom Line:
California is moving toward decriminalizing most welfare fraud under $25,000 with SB 560, a bill that would shift enforcement to administrative penalties instead of felony charges.
While backers claim it’s about fairness, critics warn this will lead to more fraud and less accountability in a system already plagued with waste and abuse.
With billions at stake, the proposal raises serious questions about California’s priorities—and the voters who keep choosing leaders pushing policies like this.
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