NEW YORK, NY — An initial federal review has revealed widespread abuse of Unemployment Insurance programs across multiple states, with fraudulent claims totaling hundreds of millions of dollars, including payments to claimants too old, too young — or not yet born.
Key Points:
- $254 million in benefits were claimed by 1 to 5-year-olds since 2020
- $59 million went to people listed as over 115 years old
- California, New York, and Massachusetts were responsible for $305 million in improper claims
The Department of Government Efficiency (DOGE) disclosed that California, New York, and Massachusetts were responsible for a combined $305 million in improper unemployment claims. California alone accounted for 68% of the benefits paid to parolees who appeared on the terrorist watchlist or had criminal records, as identified by Customs and Border Protection.
The DOGE findings were based on a survey of unemployment insurance claims submitted since 2020. The review identified tens of thousands of highly improbable or impossible claimants, including more than 24,500 individuals over 115 years old, who collectively received $59 million in unemployment benefits.
Children and future-born individuals flagged
Even more startling, the report noted that more than 28,000 claims were filed under the names of children between the ages of 1 and 5, totaling $254 million in benefits paid out. In addition, 9,700 claims were associated with individuals whose listed birth dates were more than 15 years in the future.
“These figures represent clear vulnerabilities in the system,” DOGE wrote in a public post, citing its analysis of fraud patterns across several high-claim states.
DOGE did not specify how many of the claims are under active investigation or how many states have begun recoupment proceedings for the improperly distributed funds. However, the findings are expected to prompt reviews by state unemployment agencies and may trigger federal oversight actions.
High-risk claims linked to known offenders
The report also highlighted the distribution of unemployment payments to parolees identified on the federal terrorist watchlist. Of those payments, California was responsible for nearly 7 out of every 10 dollars, raising questions about identity verification processes within the state’s unemployment insurance program.
Federal and state authorities have not yet released timelines for potential prosecutions or recoveries stemming from the flagged claims. The DOGE’s findings are part of a broader effort to identify systemic inefficiencies in government benefit programs launched during the pandemic.