Musk’s Watchdog Uncovers $400M in Unemployment Fraud

Elon Musk’s watchdog agency DOGE reveals nearly $400M in Biden-era unemployment fraud tied to three Democrat-led states.

Elon Musk’s Watchdog Flags $400 Million in Pandemic-Era Unemployment Fraud

A government watchdog agency linked to Elon Musk has dropped a bombshell, uncovering what it calls nearly $400 million in fraudulent unemployment payments — much of it funneled through Democrat-led states during the Biden administration.

The revelations come from the Department of Government Efficiency (DOGE), a Musk-supported initiative aimed at exposing systemic inefficiencies in federal programs. According to a new report, three states — California, New York, and Massachusetts — account for more than 79% of the misappropriated funds, raising urgent questions about oversight, accountability, and the long-term costs of pandemic-era relief.

Democratic Strongholds at the Center of the Storm

The DOGE report, released Thursday, alleges that California alone was responsible for 68% of the erroneous payments, including benefits distributed to parolees flagged on the federal terror watchlist or with prior criminal convictions. New York and Massachusetts rounded out the top three, with improper payments totaling an additional $100 million combined.

All three states are governed under Democratic trifectas, meaning one party controls the governorship and both legislative chambers. They also maintain Democratic triplexes, which include the Attorney General and Secretary of State. Critics argue that such concentrated control has fostered a lack of fiscal discipline and insufficient oversight — especially during the high-stakes distribution of pandemic-era aid.

White House spokesperson Harrison Fields weighed in, telling Fox News Digital: “There’s a reason people are leaving states with progressive policies. High taxes and reckless spending are driving them away.”

Absurd Claims and System Failures Exposed

The DOGE investigation unearthed a host of shocking examples — claims filed under the names of toddlers, supercentenarians, and even individuals with future birthdates. Since 2020, hundreds of millions of dollars have reportedly gone to applicants that simply couldn’t exist, suggesting deep failures in federal and state-level verification systems.

According to watchdog findings, some recipients were under five years old or listed as being over 115 — including one case involving a person born in 2026.

“This level of dysfunction is appalling,” said Labor Secretary Lori Chavez-DeRemer, who emphasized the department’s intent to pursue restitution. “We are committed to recovering every stolen taxpayer dollar and holding bad actors accountable.”

Fraud Exploits Loopholes in Immigration Screening

Adding to the controversy, DOGE disclosed this week that more than 6,000 immigrants with criminal records or flagged by federal security agencies were allowed entry into the United States with minimal screening under the Biden administration. Of those, hundreds reportedly accessed public funds, including unemployment benefits, food assistance, and even federal tax refunds.

DOGE found at least $42,000 in unemployment benefits paid to individuals on the terror watchlist, with additional support coming via student loans and welfare aid. In stark contrast, the Trump administration had enforced a strict parole ban on individuals with criminal histories or flagged security profiles.

Political Fallout and Broader Implications

The latest DOGE findings have intensified political tensions heading into an election year, with Republicans seizing the moment to contrast their economic and immigration policies with those of the current administration. Supporters argue the watchdog’s work justifies more aggressive audits and greater privatization of government efficiency reviews.

But others warn of politicized oversight and question whether Musk’s influence skews the agency’s objectivity. Regardless, the numbers speak volumes: billions were distributed under emergency mandates, and a significant chunk may have never reached those who truly needed help.

Conclusion: A Call for Reform in the Wake of Scandal

The DOGE report offers a sobering look at the unintended consequences of rushed relief programs and underlines the need for greater transparency, better digital infrastructure, and bipartisan accountability. Whether or not one agrees with Musk’s politics, the findings expose systemic cracks that can no longer be ignored.

As the nation continues recovering from the economic and social shocks of the pandemic, these revelations serve as a powerful reminder: crisis management without oversight opens the door to crisis creation.

Disclaimer:
This article is for informational purposes only and does not provide legal, financial, or political advice. It is not affiliated with Elon Musk, DOGE, or any government agency. All views and quotes are attributed to official public sources. Always consult official reports for the most accurate and up-to-date information.

source : The Economic Times