California lawmakers to hear bill that would decriminalize welfare fraud under $25K
A new bill introduced by State Sen. Lola Smallwood-Cuevas aims to decriminalize welfare fraud below $25,000 in California, specifically for simple administrative errors. Senate Bill 560, introduced in February, seeks to eliminate criminal penalties for welfare fraud under $25,000 and remove provisions for criminal penalties for any attempts at welfare fraud below $950. Smallwood-Cuevas believes that California’s safety net should support families rather than punish them for minor mistakes, such as missed deadlines or paperwork errors, that can result in felony charges and tear families apart.
The proposed legislation, set for a hearing on May 5, would require county agencies to determine if welfare benefits were mistakenly authorized due to errors in the Statewide Automated Welfare System (CalSAWS). It would also prevent individuals from facing criminal prosecution in certain instances of benefit overpayments or issuances. Smallwood-Cuevas emphasized on Instagram that the bill aims to prevent families from being ensnared in the criminal justice system for administrative errors by raising the threshold for welfare fraud prosecutions.
According to the California Department of Social Services, the most common forms of welfare fraud include unreported income, absent parents living in the home, using ineligible children, or including children who do not live in the recipient’s household. In Los Angeles County alone, field investigators handle thousands of fraud cases or referrals annually. Despite this, only a small percentage of cases result in criminal prosecution, with the majority ending in convictions.
Smallwood-Cuevas’s bill represents a shift towards a more compassionate and practical approach to addressing welfare fraud, focusing on accountability without criminalizing poverty. By allowing counties to resolve overpayment cases administratively, the proposed legislation aims to keep families out of the criminal justice system for minor errors. This bill aligns with efforts to streamline welfare processes and ensure that families receive the support they need without facing unnecessary legal consequences.
