Reports Highlight Welfare Fraud in Massachusetts and Other States

Investigations in Massachusetts have uncovered significant fraud in state-run welfare programs, according to a Washington Examiner report. The state auditor announced in January that her office documented at least $12 million in stolen food-stamp funding for fiscal 2025.

The auditor also identified $34 million in fraud over the past three years and $4.4 million in the first half of 2026. In March, the auditor's office reported an additional $9 million in stolen funds since December.

Federal Prosecutions and Specific Cases The U.S.

Attorney’s Office for the District of Massachusetts has prosecuted several cases. In February, two Venezuelan nationals and a U.S. citizen were charged with defrauding food stamps to purchase hundreds of thousands of dollars worth of meat for their Boston restaurant.

In March, six illegal immigrants, along with three others, were charged with stealing identities to perpetrate welfare fraud. One defendant, an illegal immigrant, allegedly used a dead person’s identity for more than two decades to steal food stamps.

An employee at the state agency managing food stamps flagged the issue to a supervisor, but the application was approved. A whistleblower from the agency described a “tone of normalcy” regarding fraud and said leaders pressured staff to overlook abuse.

problems exist in other states, the report stated.

In New York, a federal audit found more than $23 million in Medicaid spending on deceased people. Pennsylvania’s state inspector general reported a 165% increase in welfare fraud in 2025, making it the fourth-worst state per capita. Federal investigators found nearly half of sampled Medicaid enrollees participating in programs in multiple states, noting ended enforcement policies.

Last year, President Donald Trump and the Republican Congress passed a reform bill holding states accountable for excessive welfare spending losses to waste, fraud, and abuse. Republican-led states have increased efforts to address these issues, while some Democratic-led states hope for repeal of the reforms. The report noted that fraud issues persist despite shifting news attention.