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California Recovers $6 Billion from Unemployment Fraud

3/9/2026

40 2 Full Breakdown

Summary

Story summary

California has recovered $6 billion of an estimated $20 billion lost to COVID-era unemployment fraud, with the Employment Development Department (EDD) partnering with law enforcement and securing 670 convictions.
Recovery is hampered by the statute of limitations and by converting fraudulently obtained funds to cash.
Experts propose structural changes, including raising the taxable wage base, to address ongoing deficits.

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Story summary

California has recovered $6 billion of an estimated $20 billion lost to COVID-era unemployment fraud, with the Employment Development Department (EDD) partnering with law enforcement and securing 670 convictions.
Recovery is hampered by the statute of limitations and by converting fraudulently obtained funds to cash.
Experts propose structural changes, including raising the taxable wage base, to address ongoing deficits.