The battle has begun over billions of dollars allegedly stolen during the pandemic, pitting state officials against a web of scammers and their own private contractors. With another stimulus bill poised to inject more cash into a leaky system, taxpayers could be left holding the bag.
After the Great Recession, California signed an exclusive contract with Bank of America to distribute unemployment benefits through prepaid debit cards. A CalMatters investigation reveals that to this day, no one knows how much the bank has made off the deal. Lawmakers are examining the bank’s role in mass account freezes and untold amounts of missing money for thousands of struggling jobless Californians — as well as where the bank may have failed to keep unemployment money safe from fraud.
A lopsided victory for the measure to keep Uber, Lyft, DoorDash and Instacart drivers classified as contractors with limited job benefits puts labor groups on defense.