• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

CA fails audit of federal programs, 66% of COVID unemployment benefits in question

April 7, 2025

(The Center Square) – California did not materially comply with the requirements for seven of the 22 federal programs the state auditor examined, including “pervasive” noncompliance in its unemployment benefits program, which could put essential federal funding at risk.

“This report concludes that the State did not materially comply with certain requirements for seven of the 22 federal programs or clusters of programs (federal programs) MGO audited, including one program for which the noncompliance was pervasive,” wrote Deputy State Auditor Linus Li. “Additionally, although MGO concluded that the State materially complied with requirements for the remaining federal programs it audited, the State continues to experience certain deficiencies in its accounting and administrative practices that affect its internal controls over compliance with federal requirements.”

The audit found that even in 2023 — years after the state made $55 billion in fraudulent COVID lockdown-era benefits payments — the state likely made “potentially ineligible payments” of nearly $200 million. The audit also found that of 138 pandemic unemployment assistance claimants that were tested, 91, or 66%, had verification issues.

“While Gavin Newsom chases the national spotlight, Californians are left with an administration that can’t accomplish the basic functions of government,” said California State Assembly Minority Leader James Gallagher to The Center Square. “The federal government is right to take a look at this spending and decide if it’s appropriate to keep throwing resources at an administration that treats it like Monopoly money.”

Last year, the state’s Legislative Analyst’s Office said the state’s unemployment fund runs a structural deficit of $2 billion per year, beyond the $20 billion debt and $1 billion in annual interest payments to the federal government. Because the unemployment fund is paid for by payroll taxes on employers and their employees, the LAO said payroll taxes would need to rise from $42 per employee making $46,800 or more per year, to $889.20, or over 21 times higher than the existing base payroll tax.

 

By Kenneth Schrupp | The Center Square

Filed Under: Featured, Home Featured, News

Related Articles:

  • Watchdog says Biden Education Department defied court order on Title IX enforcement
  • North Dakota Schools Chief Kirsten Baesler Confirmed as U.S. Assistant Secretary of Education
  • Auditor’s Office Blocks $21.6 Million in Insurance Rate Hikes
  • Gianforte Signs Trade Agreement with Taiwan Flour Millers
  • Governor Gianforte Praises $1.5 Million Expansion of Western Montana State Veterans Cemetery
  • UM Accounting Students Win National Scholarships

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • North Dakota Schools Chief Kirsten Baesler Confirmed as U.S. Assistant Secretary of Education
  • Governor Gianforte Praises $1.5 Million Expansion of Western Montana State Veterans Cemetery
  • Montana Coal Board Awards $1.8 Million for Public Safety and Infrastructure Projects
  • Watchdog says Biden Education Department defied court order on Title IX enforcement

Recent Politics Posts

  • Daines Introduces Bill to Protect Religious Student Groups on College Campuses
  • USITC Advances Probe Into Russian Palladium Imports After Montana Delegation Push
  • Knudsen Leads 27-State Coalition Challenging California’s Magazine Ban
  • Zinke Votes for Short-Term Funding Bill to Avert Government Shutdown

Recent Business Posts

  • Wall Street Rallies to Fresh Highs After Fed Rate Cut
  • Governor Gianforte Welcomes Rivian as First Electric Vehicle Manufacturer in Montana
  • Montana State opens quantum computing facility
  • Warren Buffett Marks 95th Birthday With Reflection on Legacy, Berkshire’s Future

Copyright © 2025 Digital News Updates, All Rights Reserved.