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A sweeping investigation by the Department of Government Efficiency (DOGE) has brought to light a staggering $382 million in fraudulent unemployment claims since 2020, with the vast majority traced back to California, New York, and Massachusetts, states governed entirely by Democratic supermajorities.
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According to details reported by Fox News, these three Democrat-led states were responsible for roughly $305 million of the misallocated funds. California alone accounted for 68% of the benefits that had been distributed to parolees who were either flagged on federal watchlists or held criminal backgrounds during a period when President Joe Biden’s policies were in effect.
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Given that each of these states has a Democratic trifecta and triplex—that is, Democrats control all three houses of state government in addition to the positions of attorney general and secretary of state—the findings further called into question the governance of these jurisdictions.
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Commenting on the revelations, White House spokesperson Harrison Fields remarked that the exodus from Democrat-controlled states may not be coincidental. Fields noted that high taxes, poor management of public funds, and radical policies continue to drive families and businesses into more responsible, Republican-led states.
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Earlier this week, DOGE revealed that tens of thousands of fraudulent unemployment claims had been processed under the Biden administration. Beneficiaries included individuals listed with blatantly fictitious birth records — including claims submitted by those reportedly over 115 years old, infants under five, and even people whose birthdates had yet to occur.
Labor Secretary Lori Chavez-DeRemer applauded the uncovering of this fraud, noting that the department remains committed to retrieving misused taxpayer money. she said that the scale of deception is outrageous, but the work being done now is critical to accountability, In a related finding, DOGE also reported that, under the Biden-era immigration framework, screening procedures had become so relaxed that over 6,000 individuals flagged by the FBI or possessing criminal records were allowed to enter the country.
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Hundreds were later found to have accessed public resources, including unemployment benefits, food assistance, tax refunds, and federal student loans — costing taxpayers tens of millions. Notably, these policies stood in stark contrast to those previously enforced by the Trump administration, which had ended parole for individuals with criminal ties or known terrorist affiliations.
At a Cabinet meeting on Thursday, Elon Musk, the leader of President Trump’s DOGE, provided a favorable update. By fiscal year 2026, Musk estimates that his department’s efforts to cut government waste and fraud will save taxpayers $150 billion.
Musk shared, as quoted by DailyMail.com stating that thanks to President Trump’s leadership and the incredible team at DOGE, we’re on track to eliminate billions in government waste. He described some of the uncovered programs as crazy, citing examples like unemployment checks being issued to individuals not yet born.
While the projected savings fall below Musk’s original $2 trillion target — later adjusted to a more practical $1 trillion — the $150 billion estimate still marks a substantial milestone. According to the official DOGE website, the current reforms have already yielded $931 in savings per American taxpayer — a tangible result of conservative governance and renewed oversight.