A California lawmaker wants to change how the state deals with low-level welfare fraud by removing criminal penalties for overpayments caused by administrative mistakes.

State Sen. Lola Smallwood-Cuevas has introduced Senate Bill 560, which would stop counties from pursuing criminal charges in certain welfare fraud cases under $25,000. The proposed law would also eliminate penalties for attempted welfare fraud under $950.

The bill, introduced in February, is scheduled for a hearing on May 5, reports Fox News.

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

“This bill is about keeping families out of the criminal justice system from making administrative errors on raising the threshold for welfare fraud prosecutions,” Smallwood-Cuevas said in an April 8 Instagram post.

Under the bill, a county agency would first have to determine whether the welfare benefits were incorrectly approved because of an error in the Statewide Automated Welfare System (CalSAWS). If so, the person receiving the benefits would not face criminal prosecution.

“California’s safety net should lift families up, not trap them in poverty,” Smallwood-Cuevas told Fox News. “Right now, a missed deadline or paperwork mistake can lead to felony charges that tear families apart — even when there’s no intent to deceive.”

She added that the proposal “offers a smarter, more humane approach by allowing counties to resolve most overpayment cases administratively, holding people accountable without criminalizing poverty.”

🇺🇸 CALIFORNIA’S NEW PLAN: MAKE WELFARE FRAUD “JUST A CLERICAL ERROR”

In the latest move to reward bad behavior, California Democrats want to decriminalize welfare fraud under $25,000.

State Sen. Lola Smallwood-Cuevas says felony charges over "missed paperwork" are unfair —… https://t.co/l64kJv31NT pic.twitter.com/uUt7W4ZxKq

— Mario Nawfal (@MarioNawfal) April 29, 2025

Data from the California Department of Social Services shows that most welfare fraud cases involve situations such as unreported income, people claiming benefits for children who don’t live with them, or a parent claiming to be absent when they actually live in the home.

In Los Angeles County, investigators review between 15,000 and 20,000 fraud referrals each year. They find fraud in about 5,000 to 8,000 of those cases. Out of those, only about 200 are referred to the Los Angeles County District Attorney’s Office, and 95% of those cases lead to a conviction.

The bill is part of a broader push by some California lawmakers to shift from criminal prosecution toward administrative solutions for issues involving low-income residents.