Bill Aims to Decriminalize Welfare Fraud Cases Under $25K Due to Administrative Errors – One America News Network
OAN Staff James Meyers
10:27 AM – Wednesday, April 30, 2025
A California Democrat has proposed a bill aimed at decriminalizing welfare fraud for amounts under $25,000.
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State Senator Lola Smallwood-Cuevas (D-Calif.) has put forward Senate Bill 560, which seeks to eliminate criminal penalties for welfare fraud below the $25,000 threshold. Additionally, it aims to remove penalties for cases involving amounts less than $950, as outlined in the bill introduced in February.
“California’s social safety net should empower families, not trap them in poverty,” Smallwood-Cuevas explained to Fox News Digital. “Currently, a missed deadline or minor paperwork error can result in felony charges that can fracture families — even without any intention to deceive.”
She further stated that the bill “provides a more sensible and compassionate solution by allowing counties to manage most overpayment situations through administrative means, thereby holding individuals accountable without criminalizing poverty.”
In the meantime, a hearing for the legislation is scheduled for May 5th.
The bill requires a county agency to assess whether welfare benefits were mistakenly authorized due to an error in the Statewide Automated Welfare System (CalSAWS).
If approved, this bill would prevent individuals from facing criminal charges in specific circumstances regarding overpayment of benefits.
“This legislation focuses on preventing families from entering the criminal justice system due to administrative mistakes by raising the threshold for welfare fraud charges,” Smallwood-Cuevas mentioned in an April 8th Instagram post.
“At present, a simple missed deadline or paperwork oversight can lead to felony charges that disrupt families — even in cases where there is no intent to commit fraud.”
Data from the California Department of Social Services indicates that most welfare fraud occurs when an absent parent is actually residing at home or when unreported children who do not live with the individual are being included in their case.
In Los Angeles, investigators typically uncover fraud in approximately 5,000 to 8,000 cases annually. From these, around 200 cases are forwarded to the LA County District Attorney’s office, with a conviction rate of 95%.
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