Comer & McClain Continue Probe of Rampant Fraud in California’s Unemployment Insurance System
WASHINGTON —House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) and Subcommittee on Health Care and Financial Services Chairwoman Lisa McClain (R-Mich.) are continuing their investigation into the state of California’s Unemployment Insurance (UI) System which has been plagued by rampant waste, fraud, and abuse of U.S. taxpayer dollars. In the letter, which follows previous requests, the Republican lawmakers again press California Employment Development Department (EDD) Director Nancy Farias for documents and information which the Department has refused to produce.
“We write to follow up on your letters dated January 27, 2023 and February 17, 2023—responding to our January 13, 2023, letter—which neglected to provide the Committee with requested documents and communications. Absent the production of responsive documents and communications, the Committee does not consider the EDD’s response as complete,” wrote the lawmakers. “We are providing you with another opportunity to provide the Committee with responsive documents and communications to assist the Committee’s investigation.”
California’s UI system has been plagued by rampant waste, fraud and abuse. Estimates show as much as over $32 billion in fraudulent claims have been paid out by the state during the pandemic. This theft of taxpayer dollars happened while Julie Su oversaw the California unemployment insurance program. Su is currently going through the Senate confirmation process to become the Secretary of Labor. Chairman Comer has raised concern that Su’s appointment would lead to waste, fraud, and abuse at the federal level.
Read the letter to Director Farias here.
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