Costly Errors

The Department of Government Efficiency (DOGE), a federal oversight agency launched to root out wasteful spending, has identified approximately $382 million in fraudulent unemployment claims since 2020. Most of the overpayments were concentrated in three highly populated states: California, New York, and Massachusetts, which collectively accounted for around $305 million in improper distributions.

According to DOGE officials, one significant discovery was that California alone accounted for 68% of the unemployment benefits issued to parolees with criminal backgrounds or individuals flagged by federal authorities for additional scrutiny.

“This is another incredible discovery by the DOGE team,” said Labor Secretary Lori Chavez-DeRemer in a statement. “The Labor Department is committed to recovering Americans’ stolen tax dollars. We will catch these thieves and continue working to root out egregious fraud.”

Elon Musk Shares Findings Ahead of Oversight Role Wrap-Up

As DOGE’s special government adviser Elon Musk prepares to step down from his temporary post, he appeared in a televised interview to share some of the most alarming cases of wasteful spending his team uncovered during his tenure.

Among them:

• Payments to a former Taliban official: The U.S. Institute of Peace was found to have paid $132,000 to Mohammad Qasem Halimi, a former Afghan official who was once detained by U.S. forces. The contract has since been canceled.
• Misuse of school relief funds: DOGE audits revealed school districts across the country spent COVID-19 relief funds on items unrelated to student learning—ranging from hotel stays in Las Vegas to renting sports stadiums. One school district used the funds to purchase an ice cream truck, while others spent tens of thousands on pool passes and travel expenses.
• International programming costs: A separate investigation found that $20 million was allocated by the U.S. Agency for International Development (USAID) to fund a children’s television show in Iraq modeled after Sesame Street, intended to foster cultural understanding.

Broader Waste Identified Across Federal Agencies

DOGE’s work has been supported by a March report from the Government Accountability Office (GAO), which showed that $162 billion in improper payments were made across 16 federal agencies. The vast majority of that waste came from five major programs, including Medicare, Medicaid, and agricultural subsidies.

The Department of Government Efficiency also reported significant cuts in low-impact or poorly monitored contracts, including hundreds of millions allocated to programs without clearly measured outcomes.

DOGE was created with a goal of identifying ways to reduce federal waste by up to $2 trillion. As Musk’s role concludes on May 30—due to limits on days served by special government employees—agency leaders say their work will continue with a renewed focus on transparency, accountability, and fiscal discipline.