The Department of Government Efficiency (DOGE) has uncovered a staggering $382 million in fraudulent unemployment payouts since 2020 — and more than $305 million of that was traced back to just three Democrat-led states: California, New York, and Massachusetts.
In a bombshell report released Thursday, DOGE identified these states as the epicenters of improper claim payments, exposing systemic failures in benefits oversight during the Biden administration.
California alone was responsible for 68% of payments made to parolees flagged by federal authorities as either having criminal records or being on the FBI’s terror watchlist. DOGE’s findings suggest these states — all of which operate under full Democratic control of legislative and executive branches — failed to properly safeguard public funds.
“There’s a reason people are fleeing Democrat-run states,” said White House spokesperson Harrison Fields. “High taxes, reckless spending, and failed progressive policies are driving residents to Republican-led states that actually manage their economies.”
Earlier this week, DOGE also revealed that hundreds of millions in fraudulent benefits were paid out to tens of thousands of individuals listed as either over 115 years old, toddlers, or even with birthdates that haven’t occurred yet.
“This is another incredible discovery by the DOGE team,” said Labor Secretary Lori Chavez-DeRemer. “The Labor Department is committed to recovering every stolen dollar. We will catch these thieves.”
But the watchdog didn’t stop there. In a separate report, DOGE detailed that the Biden administration routinely allowed immigrants into the U.S. with minimal background checks, leading to over 6,000 individuals with criminal records or terror links entering the country — many of whom went on to collect taxpayer-funded benefits.
Among them, hundreds received unemployment payouts totaling $42,000, along with student aid, food stamps, and even tax refunds.
By contrast, the Trump administration had a strict no-parole policy for individuals with terror or criminal flags.