NEW YORK (AP) — The latest government waste touted by billionaire Elon Musk’s cost-cutting Department of Government Efficiency is hundreds of millions of dollars in fraudulent unemployment claims it purportedly uncovered.
One problem: Federal investigators already found what appears to be the same fraud, years earlier and on a far greater scale.
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This is an attack on the image of a critically important program and perhaps an attempt to undermine public support on unemployment insurance when it couldn’t be more important.
“They’re trying to spin this narrative of, ‘Oh, government is inefficient and government is stupid and they’re catching these things that the government didn’t catch,’” says Michele Evermore, who worked on unemployment issues at the U.S. Department of Labor during the administration of former President Joe Biden. “They’re finding fraud that was marked as fraud and saying they found out it was fraud.”
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“I don’t think it’s news to anyone,” says Amy Traub, an expert on unemployment at the National Employment Law Project. “It’s been widely reported. There’ve been multiple congressional hearings.”
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Traub said the burst of pandemic-era unemployment fraud led states to implement new security measures. She questioned why Musk’s team was trumpeting old fraud as if it’s new.
“Business leaders and economists are warning about a national recession, so it’s natural to think about unemployment,” says Traub. “It’s an attack on the image of a critically important program and perhaps an attempt to undermine public support on unemployment insurance when it couldn’t be more important.”
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