• 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:

  • JPMorgan CEO Jamie Dimon Signals Support for Kevin Warsh as Next Fed Chair
  • Strategy Retains Spot in Nasdaq 100 Amid Market Scrutiny
  • Meta Strikes Multiple AI Deals with Major News Publishers
  • President Trump Announces Reset of Corporate Average Fuel Economy Standards
  • Volkswagen to Invest $186 Billion Through 2030
  • MVD Rolls Out Next-Generation Driver Licenses and IDs

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • Montana State to host national mathematics competition for middle schoolers
  • Israel Killed Senior Hamas Commander in Gaza
  • Governor Gianforte Declares Flooding Disaster in Northwestern Montana
  • Federal Government Targets Immigrant Truck Licenses in Eight States After Deadly Crashes

Recent Politics Posts

  • State money will help establish Black Cultural District in L.A.
  • Daines-Led Bill Unlocking Eastern Montana Mining Signed Into Law
  • Armstrong Eyes Jan. 21 for Tentative Special Legislative Session on Rural Health Funding
  • President Trump Signs H.J. Res 133 and H.R. 1512 into Law

Recent Business Posts

  • President Trump Signs Executive Order on Politically-Motivated Proxy Advisors
  • Strategy Retains Spot in Nasdaq 100 Amid Market Scrutiny
  • JPMorgan CEO Jamie Dimon Signals Support for Kevin Warsh as Next Fed Chair
  • Meta Strikes Multiple AI Deals with Major News Publishers

Copyright © 2025 Digital News Updates, All Rights Reserved.