After uncovering $382 million in fraudulent unemployment payments since 2020, the Department of Government Efficiency (DOGE) identified California, New York, and Massachusetts — all of them run by Democrat supermajorities — as the main sources of improper disbursements.
DOGE officials said that the three deep blue states were responsible for $305 million of the misdirected funds, Fox News reported.
Additionally, DOGE noted that California alone accounted for 68% of the benefits distributed under former President Joe Biden to parolees flagged by federal authorities as being on the government’s terrorist watchlist or as having criminal records.
California, New York, and Massachusetts all feature a Democratic trifecta—Democrats control the state House, Senate, and governorship. Additionally, these states enjoy a Democratic triplex, with party control of the Attorney General, Secretary of State, and governorship, Fox added.
“There’s a reason for the mass exodus from Democrat-run states that have mismanaged their economies and driven residents to the nearest Republican-led state,” White House spokesperson Harrison Fields told Fox News Digital. “High taxes, poor stewardship of taxpayer dollars and progressive policies continue to yield negative results, which is why Americans overwhelmingly support the work of DOGE.”
Earlier this week, DOGE revealed that since 2020, hundreds of millions of dollars in fraudulent unemployment benefits were issued to tens of thousands of individuals with clearly invalid birth records—some listed as over 115 years old, others between the ages of 1 and 5, and even some with birthdates set in the future.
“This is another incredible discovery by the DOGE team, finding nearly $400 million in fraudulent unemployment payments. The Labor Department is committed to recovering Americans’ stolen tax dollars. We will catch these thieves and keep working to root out egregious fraud,” Labor Department Secretary Lori Chavez-DeRemer said, per Fox.
Additionally, DOGE reported this week that under the Biden administration, it became “routine” to admit immigrants with minimal screening. As a result, more than 6,000 individuals with either criminal records or flags on the FBI’s terror watchlist were allowed to enter the country.
Furthermore, DOGE found that hundreds of these individuals were able to access public benefits, including roughly $42,000 through the federal unemployment insurance program. They also received funds from federal student loan programs, food assistance programs, and IRS tax refunds, the outlet’s report noted further.
The Trump administration ended parole for individuals with criminal records or those on the FBI’s terror watchlist.
Meanwhile, Musk announced during a Cabinet meeting on Thursday the projected savings that the DOGE team is expected to deliver next year for U.S. taxpayers by reducing government waste.
Speaking in the West Wing’s Cabinet Room before the president’s top officials, Musk stated that DOGE is on track to save $150 billion in fiscal year 2026.
“Thanks to your fantastic leadership, this amazing Cabinet and the very talented DOGE team, I’m excited to announce that we anticipate savings in FY 26 from reduction of waste and fraud by $150 billion,” Musk said, as DailyMail.com reported.
He went on to note that several government programs his DOGE team has discovered are “absurd” and “crazy.”
“Like people getting unemployment insurance who haven’t been born yet,” he said.
Despite the staggering amount projected to be saved next fiscal year, the estimate falls well short of the group’s original target for cutting federal payroll expenses.
Musk initially aimed to eliminate $2 trillion in waste, fraud, and abuse. He later revised that figure, describing it as a “best-case outcome” and said his realistic goal is closer to $1 trillion—still significantly higher than current projections.
Still, saving the U.S. $150 billion in just a few months is a remarkable achievement—one that every American stands to benefit from through the individual savings it generates.
According to the DOGE website, the initiative has already saved each taxpayer $931.