OAN Staff James Meyers
10:27 AM – Wednesday, April 30, 2025
A Democrat in California has introduced a bill that would decriminalize welfare fraud that falls under $25,000.
State Senator Lola Smallwood-Cuevas (D-Calif.) introduced Senate Bill 560, which would get rid of criminal penalties for welfare fraud that falls below $25,000. It will also delete a provision for criminal penalties for welfare fraud that is less than $950, according to the proposed bill that was introduced in February.
“California’s safety net should lift families up, not trap them in poverty,” Smallwood-Cuevas told Fox News Digital. “Right now, a missed deadline or paperwork mistake can lead to felony charges that tear families apart — even when there’s no intent to deceive.”
Smallwood-Cuevas said the bill “offers a smarter, more humane approach by allowing counties to resolve most overpayment cases administratively, holding people accountable without criminalizing poverty.”
Meanwhile, the legislation has a hearing set for May 5th.
The bill mandates that a county agency will determine whether the welfare benefits were authorized as a result of an error in the Statewide Automated Welfare System (CalSAWS).
If passed, the bill would prohibit a person from being subject to criminal prosecution in certain instances for an overpayment of benefits.
“This bill is about keeping families out of the criminal justice system from making administrative errors on raising the threshold for welfare fraud prosecutions,” Smallwood-Cuevas said in an April 8th Instagram post.
“Right now, a missed deadline or paperwork mistake can lead to felony charges that tear families apart — even when there’s no intent to deceive.”
According to the California Department of Social Services, most welfare fraud occurs when the reported absent parent is actually living in the home, or using an unreported child or children who are not living in the home who are part of the person’s case.
On average, Los Angeles investigators find fraud in about 5,000 to 8,000 cases. Of those, 200 cases are sent to the LA County District Attorney’s office and 95% result in a conviction.
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