California Considers Decriminalizing Welfare Fraud Under $25K Due to Administrative Errors

California is considering a major shake-up in how it handles welfare fraud—at least when it comes to mistakes under $25,000. State Senator Lola Smallwood-Cuevas has rolled out Senate Bill 560, which would scrap criminal penalties for welfare fraud under $25,000 if the offense stems from an administrative error. The proposal, introduced back in February, also drops charges for attempted welfare fraud below $950. Honestly, that’s a pretty specific number—did someone run the stats on who’s been pocketing $949.99?

Smallwood-Cuevas argues the bill aims to keep families from being slammed with felony charges over paperwork mix-ups, not actual deception. "California’s safety net should lift families up, not trap them in poverty," she said. The bill’s goal is to let counties resolve most overpayment snafus administratively, holding people accountable without tossing them into the criminal justice system. In her words, it’s about finding a "smarter, more humane approach." Translation: less courtroom drama, more paperwork parties.

The bill is scheduled for its first hearing on May 5. If it passes, county agencies would first have to see if the issue was caused by a glitch in the Statewide Automated Welfare System (CalSAWS)—basically, making sure the error wasn’t a tech hiccup before going after anyone.

The legislation would protect folks from prosecution in specific cases involving overpayments or extra benefits issued by mistake. Smallwood-Cuevas summed it up on Instagram: it’s about raising the threshold for welfare fraud prosecutions and stopping families from being criminalized over admin errors.

For context, most welfare fraud in California happens when someone claims an absent parent is living elsewhere (when they’re actually at home), fails to report income, or includes ineligible children in their case. In Los Angeles County alone, investigators juggle up to 20,000 fraud cases or tips every year. Out of those, about 5,000 to 8,000 are confirmed as fraud, and 200 cases get sent to the District Attorney—95% of which end up as convictions. So, there’s no shortage of action in the welfare fraud department, but this bill could turn down the heat for folks who just missed a deadline or checked the wrong box.