California, home to some of the country's highest income, business, and fuel taxes, is experiencing a decline in public services and infrastructure, despite spending over $300 billion per year. The state's unemployment insurance program (UI) is administered by the Employment Development Department (EDD), which can process billions in payments monthly. However, experts had warned that the system was ripe for fraud, with criminals from around the world reportedly siphoning cash from the program. The EDD failed to cross-reference its unemployment payouts with a list of suspected fraud, leading to an estimated $20 billion in fraudulent claims. California's governor, Gavin Newsom, defended his government’s record as swift action as alleged fraud.