Tipsheet

New Report Alleges $180 Billion Stolen from California Public Programs

Scott McClallen
Scott McClallen  |  April 01, 2026 7:50 PM

A new report by City Journal says that at least $180 billion has been stolen from California taxpayers.

The report from Chris Rufo, Ryan Thorpe, Kenneth Schrupp, and Haley Strack said that unemployment insurance, Medicaid, homeless programs, and welfare programs in California have all been compromised by criminals. 

City Journal reported: 

In one case, a Romanian-led fraud ring orchestrated a $5 million unemployment-insurance scheme. Members allegedly “recruited potential [EDD-benefit] applicants through Facebook” and met them at “parks throughout Southern California to complete the application process,” according to the U.S. Attorney’s Office for the Southern District of California. “Applicants paid . . . a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments,” the office said. Many of the fraudsters wired the stolen funds to Romania.

In another case, a Memphis rapper allegedly bragged about stealing from California’s unemployment program in the song "EDD." 

“Go to the bank with a stack of these,” Baines rapped, holding up Employment Development Department envelopes. Another rapper can be heard saying: “You gotta sell cocaine, I just file a claim.”

The report said that California paid out $20 billion in fraudulent unemployment claims during the COVID-19 pandemic.