A federal watchdog has uncovered nearly $400 million in fraudulent unemployment benefit payments since 2020, with the vast majority traced back to three Democrat-led states: California, New York, and Massachusetts.
According to a Thursday report by the Department of Government Efficiency (DOGE), the three states accounted for $305 million of the total improper disbursements.
DOGE also revealed that California alone was responsible for 68% of the unemployment benefits given to parolees who were either listed on the federal government’s terrorist watchlist or had criminal records during the Biden administration.
Ned Ryun calls out blue states about unemployment benefit fraud motives.
“305 million of that 400 million in the improper unemployment benefits were from three states. Three blue states. California, New York, and Massachusetts. And it turns out that California, of the people… pic.twitter.com/5vYm5K9zs4
— DeVory Darkins (@devorydarkins) April 11, 2025
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All three states named in the report — California, New York, and Massachusetts — are governed by Democratic trifectas and triplexes, meaning Democrats control the state House, Senate, governorship, and statewide executive offices such as the Attorney General and Secretary of State.
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“There’s a reason for the mass exodus from Democrat-run states that have mismanaged their economies and driven residents to the nearest Republican-led state,” said White House spokesperson Harrison Fields in a statement to Fox News Digital.
“High taxes, poor stewardship of taxpayer dollars and progressive policies continue to yield negative results, which is why Americans overwhelmingly support the work of DOGE.”
Earlier this week, DOGE released findings showing that tens of thousands of unemployment benefits had been fraudulently claimed by recipients listed as being over 115 years old, between the ages of 1 and 5, or with birthdates that had not yet occurred.
These claims were part of a broader investigation into abuse and mismanagement of federal unemployment insurance.
“This is another incredible discovery by the DOGE team, finding nearly $400 million in fraudulent unemployment payments,” said Labor Department Secretary Lori Chavez-DeRemer.
“The Labor Department is committed to recovering Americans’ stolen tax dollars. We will catch these thieves and keep working to root out egregious fraud.”
BREAKING: Secretary of Labor and @DOGE uncover over $400 million in unemployment insurance fraud.
“We have almost 25,000 people over 115 years old who are collecting $59 million… 28,000 people between 1 and 5 years old have collected fraudulent payments of $254 million.… pic.twitter.com/9OZOzcZ28f
— KanekoaTheGreat (@KanekoaTheGreat) April 10, 2025
In addition to its findings on unemployment payments, DOGE reported this week that it had identified significant lapses in immigration screening protocols under the Biden-Harris administration.
The group stated that since 2020, more than 6,000 individuals — flagged by federal agencies as having criminal records or being on the FBI’s terror watchlist — were admitted into the United States with limited or no vetting.
DOGE noted that hundreds of those individuals later accessed public benefits, including approximately $42,000 through the federal unemployment insurance system.
Other benefits collected by flagged individuals included student loans, food stamps, and IRS tax refunds.
Under President Donald Trump, the federal government had halted parole for any individual with a criminal record or ties to terrorism flagged by federal databases.
DOGE’s findings raise new questions about fraud prevention and the effectiveness of state-level systems managing public benefit programs, particularly in states with longstanding Democratic leadership.
The agency has said it will continue to investigate improper payments and refer cases to the appropriate law enforcement channels for recovery and prosecution.
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