After uncovering nearly $400 million in fraudulent unemployment payments, a government watchdog is pointing fingers at three Democrat-run states—California, New York, and Massachusetts—as primary contributors to the scandal. The findings raise serious questions about oversight, border security, and fiscal responsibility under the Biden administration.
Key Facts:
- DOGE uncovered $382 million in unemployment fraud since 2020.
- California, New York, and Massachusetts accounted for $305 million of that total.
- California alone issued 68% of fraudulent payments to parolees with criminal or terror ties.
- Fraudsters included individuals listed as over 115 years old, children, and even people with future birthdates.
- Some immigrants flagged on terror watchlists collected unemployment, student loans, food stamps, and tax refunds.
The Rest of the Story: How Unemployment Fraud Reached $382 Million
The Department of Government Efficiency (DOGE) recently released data showing that the bulk of fraudulent unemployment claims came from three Democrat-led states.
California, New York, and Massachusetts — all governed by Democratic trifectas and triplexes — were responsible for 80% of the identified fraud.
DOGE’s investigation found disturbing irregularities: payments went to thousands of recipients who were either over 115 years old, toddlers, or not yet born.
California was particularly egregious, also issuing unemployment payments to individuals flagged by federal authorities as national security threats or convicted criminals.
Federal officials revealed that since 2020, over 6,000 immigrants with criminal histories or terrorism-related alerts were allowed into the U.S. under minimal screening processes.
Some went on to collect various public benefits, with unemployment insurance alone totaling around $42,000.
There is vastly more than $400M in unemployment fraud, to be clear.
That’s just the amount calculated from payments to people who are impossibly young or definitely dead.
— Elon Musk (@elonmusk) April 12, 2025
Commentary: Why Blue States Are Failing on Unemployment Fraud
This scandal should surprise no one paying attention.
California, New York, and Massachusetts have long been symbols of bloated government, loose enforcement, and fiscal negligence.
For years, they’ve welcomed big government policies and weak border control—and now we see the consequences.
It’s no accident these states are consistently at the center of abuse when taxpayer money is involved.
From sky-high taxes to zero accountability, they’ve created environments ripe for fraud.
What’s worse is how the systems appear to have been designed—or at least maintained—in ways that made this fraud not just possible, but predictable.
We’re supposed to believe it’s a coincidence that fraudsters with terror ties or criminal records slipped through under lax screening policies, only to be handed thousands in public benefits?
Or that thousands of “recipients” older than 115 weren’t flagged immediately?
These are not honest mistakes.
These are systemic failures.
The people managing these systems must be investigated.
It’s time we looked into whether any public officials or agency workers profited from these fraudulent claims.
When hundreds of millions disappear under their watch, they should not be immune from scrutiny.
Let’s also remember: the Trump administration had stronger rules.
It ended parole for individuals on watchlists and tightened access to federal benefits.
Biden’s team reversed that—and here we are.
The Bottom Line: What This Unemployment Fraud Means for Taxpayers
Unemployment fraud has exploded under lax policies and poor oversight in California, New York, and Massachusetts.
With over $300 million lost and public trust eroded, it’s time for real accountability.
Taxpayers deserve answers—and action—to prevent future abuse of public funds.
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