623,000 Fake Home Care Workers Are Stealing Billions from U.S. Taxpayers
U.S. federal authorities have identified a massive welfare fraud scheme targeting taxpayer funds through fake home care services in New York state, with over 623,000 individuals falsely claiming to provide personal assistance under the Consumer Directed Personal Assistance Program (CDPAP) since its inception.
The scandal has drawn attention from the Trump administration after Minnesota’s widespread misuse of federal welfare programs prompted federal intervention. In December 2025, the administration announced a program requiring states to submit enrollment and attendance data before receiving federal funds for child care programs.
New York Governor Kathy Hochul, D-Calif., faced an abrupt freeze on child care and family cash assistance payments from the Trump administration in January 2026, citing concerns about widespread illegal use of taxpayer money. Hochul responded by insisting there was no evidence of fraud in New York and joining with four other states to sue the federal government.
The Consumer Directed Personal Assistance Program—a program allowing friends and relatives to receive payment for caregiving tasks—has grown over a decade into what Hochul herself admits is “one of the most abused programs in the history of New York.” Under inadequate oversight, participants have billed the state for caring for deceased individuals or multiple people with different addresses at the same time, generating as much as $200,000 annually per individual. By 2025, over 623,000 people claimed to be home health and personal assistants under CDPAP, far outstripping retail salespersons, nurses, and other occupations in the state.
The U.S. Treasury Department reported that a nauseating 10% of federal spending is allocated to fraud, with states like New York being particularly affected by schemes such as CDPAP. While some states have complied with new federal requirements, others have resisted, leading to the recent freeze on child care and family assistance payments. A federal judge temporarily blocked the Trump administration’s freeze for 14 days, but the legal battle continues.
The Government Accountability Office has documented numerous cases of fraudulent enrollment in health insurance programs, including instances where individuals used stolen Social Security numbers to secure multiple policies within a single year. This ongoing crisis highlights the growing need for stricter oversight of federal welfare programs and taxpayer funds as current systems fail to prevent significant financial losses.
By Betsy McCaughey
