California State Senator Wants to Decriminalize Welfare Fraud Less Than $25,000

Democrats, soft on crime? You knew things were bad when California said it would prosecute theft of up to $950 in merchandise as shoplifting, a misdemeanor, rather than burglary, a felony. Now, a state senator is trying to decriminalize welfare fraud less than $25,000. Fox News' Bill Melugin has more:

NEW: California Democrat state senator Lola Smallwood-Cuevas has introduced SB560, a bill that would decriminalize welfare fraud below an amount of $25,000. It would also prohibit prosecutions for attempted welfare fraud and would prohibit someone from being charged w/ perjury if… pic.twitter.com/nYnyfQm0vV
— Bill Melugin (@BillMelugin_) April 28, 2025

… they are subject to prosecution for welfare fraud.
Smallwood-Cuevas represents a large chunk of Los Angeles County, including Mar Vista, West LA, Baldwin Hills, Ladera Heights, Century City, Playa Vista, and part of downtown LA.
SB560 is scheduled for a hearing next Monday on May 5th.

Newsweek reports:

The proposal to decriminalize small-scale welfare fraud in California highlights a broader debate about how the justice system should handle low-level financial offenses, particularly those involving vulnerable populations. Supporters argue that many alleged fraud cases stem from administrative mistakes rather than deliberate wrongdoing, and that criminalizing errors as minor as $25 disproportionately harms low-income individuals.
…Opponents, however, warn that loosening penalties could encourage broader abuse of public assistance programs and undermine public trust in government services. The legislation comes at a politically sensitive time, as Democrats nationally face criticism from Republicans and some centrist voters for being perceived as softer on crime. Critics argue that measures like this could reinforce those perceptions and become potent talking points in future elections. However, the proposal comes at a time where the Department of Government Efficiency (DOGE), established by President Donald Trump and led by Elon Musk, has been set up to investigate possible fraud taking place in government agencies and having welfare agencies take the administration into their own hands is in many ways what DOGE was set up to do.
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California lawmakers are considering a proposal that would decriminalize certain types of welfare fraud under $25,000, according to Fox News.
Under SB 560, individuals would not face criminal charges for overpayments under $25,000 if the errors were determined to result from administrative mistakes, such as issues in the Statewide Automated Welfare System (CalSAWS). The bill also proposes eliminating criminal penalties for attempted welfare fraud involving less than $950.
"This bill is about keeping families out of the criminal justice system for making administrative errors," the senator wrote in an April 8 Instagram post. "It offers a smarter, more humane approach by allowing counties to resolve most overpayment cases administratively, holding people accountable without criminalizing poverty."