After drawing national attention to the scale of welfare fraud in Minnesota, Nick Shirley said California may be even worse.
“California may have the largest amount of fraud in the country,” Shirley said in a video posted on X. “California is the state with the highest taxes and collects more money than any other state in America.”
He said he found more than $170 million in alleged fraud, including daycare fraud, “as these fraudsters live in luxury with no consequences.”
A report by the Pacific Research Institute explains how loopholes may make California’s daycare system vulnerable to abuse.
According to the institute, daycare subsidies in California do not go directly to families. Instead, families enroll in an approved program, and the state sends money directly to the daycare provider.
The problem is that California daycares receive funding based on enrollment, not verified attendance.
“That reasoning makes sense on paper, but when public money flows based on names on a roster rather than children in a room, the system depends almost entirely on honest self-reporting and occasional inspections to catch abuse,” PRI said.
To make matters worse, the Biden administration required states to follow an enrollment-based system in 2024.
The result is what critics describe as widespread fraud, as documented by Shirley and state agencies.
“The California Department of Social Services publishes inspection reports for every licensed childcare facility in the state. Those reports...
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