California Dem introduces bizarre new bill that would effectively legalize welfare fraud under $25,000

4 hours ago 2

By BETHAN SEXTON FOR DAILYMAIL.COM

Published: 13:47 EDT, 29 April 2025 | Updated: 13:59 EDT, 29 April 2025

A California Democrat has introduced a caller measure which would decriminalize definite payment fraud nether $25,000.

Los Angeles Senator Lola Smallwood-Cuevas projected caller authorities which would rise the threshold for prosecution of payment fraud enacted owed to administrative errors.

Senate Bill 560 besides seeks to axe prosecutions for attempted payment fraud amounting to little than $950.

'The measure would necessitate a region quality services bureau to find whether benefits were authorized arsenic a effect of an mistake successful the Statewide Automated Welfare System (CalSAWS) and prohibit the bureau from referring a lawsuit for transgression enactment if benefits were authorized successful error,' the connection reads.

'This measure is astir keeping families retired of the transgression justness strategy from making administrative errors connected raising the threshold for payment fraud prosecutions,' Smallwood-Cuevas said.

Currently, payment fraud is criminalized astatine immoderate amount, but beneath $950 is considered a misdemeanor portion immoderate magnitude supra is simply a felony. 

'California's information nett should assistance families up, not trap them successful poverty,' the lawmaker added successful a connection to Fox News Digital.

'Right now, a missed deadline oregon paperwork mistake tin pb to felony charges that teardrop families isolated — adjacent erstwhile there's nary intent to deceive.' 

California Democrat Lola Smallwood-Cuevas has introduced a caller measure which would decriminalize definite payment fraud nether $25,000

mallwood-Cuevas projected caller authorities which would rise the threshold for prosecution of payment fraud enacted owed to administrative errors

However, astir 8,000 payment fraud cases are identified successful Los Angeles County unsocial each year, according to the county's Department of Public Services.

Of these astir 200 are referred for prosecution, with a 95 percent condemnation rate.

Most of the convicted cases volition person a court-order to wage the region back. 

Smallwood-Cuevas' critics judge softening the laws connected prosecution could pb to accrued fraud.

The astir communal forms of payment fraud uncovered by LA DPS' investigations are, an absent genitor successful the home, unreported income, lying astir the fig of children successful the location and claims which originate from extracurricular the county, according to the agency.

SB560 passed the Senate Human Services Committee earlier this period and is scheduled for a proceeding connected May 5. 

DailyMail.com has contacted Smallwood-Cuevas for comment. 

Welfare fraud is among the areas being tackled by Elon Musk's Department of Government Efficiency.

Senate Bill 560 besides seeks to axe prosecutions for attempted payment fraud amounting to little than $950

The Tesla brag antecedently revealed staggering information showing determination are millions of dormant Americans inactive eligible for societal information payments.

Musk posted a illustration connected X showing that determination are much than 20 cardinal Americans listed implicit the property of 100, including 3.9 cardinal successful the 130-139 range, much than 3.5 cardinal aged 140-149 and much than 1.3 cardinal successful the scope 150-159. 

There was adjacent an 'alive' national aged implicit 360, according to the records. 

In 1 shocking case, DOGE said they recovered idiosyncratic with a day successful 2154 who claimed $41,000 successful benefits.

Musk shared the findings connected his X account, claiming helium was truthful stunned by the numbers it took him aggregate times to grasp the information.

'Your taxation dollars were going to wage fraudulent unemployment claims for fake radical calved successful the future,' Musk said. 'This is truthful brainsick that I had to work it respective times earlier it sank in.'

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