Senators Launch Inquiry Into Unemployment Insurance Payments in New York, California, Massachusetts

Sens. ) and Tim Scott (R-SC) launched an inquiry into improper unemployment insurance payments by New York, California, and Massachusetts. The senators wrote letters to the governors of the three states and gave them until June 24 to answer questions about fraud measurement, mitigation strategies, and benefit distribution.

New York may have lost up to $666 million in taxpayer money due to improper unemployment insurance payments, the senators stated. The figure includes both overpayments and underpayments. New York had the highest unemployment insurance improper payment rate in the country.

New York’s comptroller reported that state leadership had been aware of issues with its unemployment insurance system since 2010, the senators wrote. This preceded a threefold increase in fraud claims. 38% as of March 31, 2023.

59% for the 12 months ending March 31, 2022, according to DiNapoli’s office. 51%. Former Long Island GOP Rep.

George Santos claimed $24,000 in unemployment insurance benefits while employed, the senators noted. California had roughly $482 million in improper unemployment insurance payments and Massachusetts had roughly $145 million, the senators said, citing data from the Department of Labor.

A spokesperson for Gov. Kathy Hochul stated that the Department of Labor takes fraud very seriously and has implemented several updates since the pandemic to fight fraud and abuse. Hochul’s team called the senators’ claims “patently false” and argued that the data they cite include improper payments that were believed to be accurate based on data at the time they were made.

Sens. Bill Cassidy is chairman of the Senate Committee on Health, Education, Labor and Pensions. Kathy Hochul, California Gov. Gavin Newsom, and Massachusetts Gov.