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Labor Department missed chance to recover $760 million in overpaid unemployment, audit says

LydiaJoy

Well-known
Maryland overpaid $807.4 million in unemployment benefits since the COVID-19 pandemic and missed the opportunity to recover $760 million of that amount because it took too long do to so, state auditors said.

The report published Friday by the Office of Legislative Audits covered unemployment benefit paid out between Nov. 16, 2020, and Jan. 15, 2025, when states were flush with federal cash to help them through the pandemic and the sudden and historic loss of jobs that came with it. The chance to collect many of those overpayments passed in May 2025, the auditors said.

https://marylandmatters.org/2026/01...-million-in-overpaid-unemployment-audit-says/


Thousands of Maryland residents have received letters from the Maryland Department of Labor demanding repayment of unemployment insurance overpayments.

Gina Cross received a letter demanding $250; however, Cross insists she's never applied for unemployment benefits.

"I've been working the same place since 2018," Cross, who believes she's a victim of identity theft, said


https://komonews.com/news/nation-wo...le-overpayments-state-officials-point-fingers
 

California Lost $37 Billion of Your Tax Dollars — And Nobody Can Tell You Where It Went​


https://medium.com/@CourageAndCaffe...obody-can-tell-you-where-it-went-ebf6b0d6e8be

California’s State Auditor just exposed $37 billion in missing taxpayer funds, $20 billion in unemployment fraud, and a homelessness crisis that got worse despite record spending.

  • $37 billion spent on homelessness since 2019 — with zero accountability and worse outcomes
  • $20+ billion in unemployment benefits paid to fraudsters during COVID
  • $2.5 billion California taxpayers could owe annually by 2028 due to food stamp errors
  • $1.9 billion in questionable Medi-Cal payments to people who may not qualify
  • $820 million in COVID relief funds that expired unused and went back to Washington
  • $171,000 paid to one employee for 15 months of not working because nobody tracked his leave
 
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