“We will catch these thieves”: DOGE to go after three Democrat-led states with most fraudulent unemployment claims
California – The Department of Government Efficiency (DOGE), under Elon Musk’s direction, revealed a significant amount of fraudulent unemployment claims totaling about $400 million, mostly concentrated in three Democrat-led states: California, New York, and Massachusetts. This statement raised concerns regarding the management of federal funds and the integrity of unemployment insurance programs in certain states.
Elon Musk, the head of DOGE and one of the most prominent figures in the Trump administration, said he was shocked by the results, which pointed to a severely ingrained mismanagement issue that appeared to have intensified under the Biden administration. The bulk of these fraudulent claims, totaling approximately $305 million, were traced back to California, New York, and Massachusetts, raising questions about oversight and enforcement in these states.
DOGE’s investigation started as part of a larger effort under President Trump’s administration to improve federal financial efficiency and cut wasteful spending. This work involved a thorough examination of unemployment insurance applications submitted since 2020. The findings revealed shocking discrepancies including payments to ineligible individuals including those on the terrorist watchlist or with documented criminal records and, in some cases, to nonexistent people born in the future or even a century ago.
The White House says these results highlight a more general problem of economic mismanagement in Democrat-run states, which they say pushes people to look for better government in Republican-led states. White House spokesperson Harrison Fields underlined the administration’s dedication to correcting these inefficiencies as a reason for the people’s backing of DOGE’s goal.
Read also: People laugh at Trump after Biden-like funny incident
DOGE’s investigation revealed cases when more than 6,000 people with criminal histories or those on the FBI’s terrorism watchlist entered the United States and then misused several federal programs, including unemployment benefits, further deepening the controversy. This misuse also applied to other federal aid programs such student loans and food stamps, consequently showing a widespread abuse of taxpayer money.
In her statements to the media, Secretary of Labor Lori Chavez-DeRemer underlined the department’s commitment to recover the stolen money and promised that work was still being done to catch and prosecute those involved in these frauds.
“This is another incredible discovery by the DOGE team, finding nearly $400 million in fraudulent unemployment payments,” Labor Department Secretary Lori Chavez-DeRemer told Fox News. “The Labor Department is committed to recovering Americans’ stolen tax dollars. We will catch these thieves and keep working to root out egregious fraud,” she added.
Read also: Business and conservation experts join South Florida Water Management District board
The most recent DOGE survey not only drew attention to the extent of the fraud but also to some of its absurd features, like claims made by people allegedly over 115 years old or those under five years old seeking millions in benefits.
Among the strangest outcomes, DOGE found claims from people with future birthdates, including one claimant reported as born in 2154. These ridiculous situations have highlighted not only the financial consequences but also the obvious lack of control and verification in processing unemployment insurance applications.
Elon Musk took to his X account to share his shock at the findings, emphasizing the ludicrous nature of the situation where tax dollars were being siphoned off by non-existent entities. His post highlighted his disbelief at the scale and audacity of the fraud uncovered.
Your tax dollars were going to pay fraudulent unemployment claims for fake people born in the future!
This is so crazy that I had to read it several times before it sank in. https://t.co/U5qqcyUgzo
— Elon Musk (@elonmusk) April 10, 2025
Amongst these discoveries, Musk said at a recent Cabinet meeting that DOGE is expected to save U.S. taxpayers up to $150 billion in the 2026 fiscal year through its thorough audits and efficiency initiatives. However, the savings fall short of the first goals established by the administration, implying that more effort is needed to strengthen controls and stop future system abuses in spite of these encouraging forecasts.
DOGE’s continuing investigation into fraud involving unemployment claims not only draws attention to major problems in the administration of federal assistance but also prepares the ground for potentially major changes in how states control and oversee their unemployment insurance programs. The focus stays directly on the affected states to react to these results and carry out actions to stop additional misuse of taxpayer money as these initiatives go on.
