Su Creates Debt, Su Forgives Debt, Su Troubles Congress

Globe, The Point story sparks inquiry after making $32.6 billion in debt disappear

Thanks again to the California Globe for running this piece. Also, thanks much to the office of Rep. Michelle Steel for the early “exclusive” on the article. You can visit the Globe’s website at: https://californiaglobe.com/ and Congresswoman Steel’s at: https://steel.house.gov/

Michelle Steel, from her website

The entire California Republican delegation has signed a letter -  written by Congresswoman Michelle Steel - demanding Acting Labor Secretary Julie Su explain why she has – yet again – possibly lied to Congress.

At a hearing of the House Education and the Workforce Committee on May 1, Su testified specifically that it was “absolutely false” that she would forgive California of $32.6 billion pandemic  of improperly made – read fraudulent, though she claims were accidental - pandemic unemployment payments.   

But that is exactly what she did.  And that is what the California Globe and The Point found out.

During the pandemic response, California lost at least $40 billion dollars to local and international fraudsters due to its elimination (and/or never really having) any controls on its unemployment benefit system.

That’s what Su was in charge of.

She then became the federal Acting Secretary of Labor, the appendage of “acting” in large part because even the Democrat-controlled United States Senate would not approve  her permanent appointment because of her gross incompetence here in California.

While the date of the forgiveness of the debt is unclear,  California was allowed to declare what is called “finality” on its attempt to collect the potential debt/figure out where the money went. And that’s when $32.6 billion in debt disappeared.  

Here is Su denying she would ever forgive the debt:   

In other words, Su lied to Congress– again, as she did in her failed Senatorial confirmation hearing.  

Su – who was in charge of the California Employment Development Department (EDD) as it firehosed out at least $40 billion to local and international fraudsters – has consistently blamed her failure on the unemployment insurance laws put into place in the wake of the pandemic.  The problem with that explanation is that while the  money that was sent out may have come from two different places – the state and the feds – her EDD was in charge of distributing it. 

In other words, she was in charge of the faucet, not the pipe, and she failed to guard it from fraud despite being told personally by identity security firms of the massive problem within weeks of the start of the pandemic unemployment insurance benefit dispersals.

While it can be assumed Su will repeat her answer that she “would never forgive fraud” and therefore the question is invalid, the Department of Labor did not reply to a request for comment – if it eventually does, this story will be updated.

It should also be noted that Su has been accused of politically playing fast and loose with her current office before, from hosting Big Labor gatherings on the public dime   to her war on freelance and contract workers.  

Su may seem to be an obscure bureaucrat and a typical California progressive hot house  pol, but she is not.  Sadly, Su matters, even to Kamala.   

And now Steel now wants answers, not lies.

“In a May hearing, I warned that forgiving California’s debt would be an unacceptable conflict of interest on Julie Su’s part,” Steel said.  “She denied plans to do so and subsequently failed to be forthcoming to Congress. Now, Su has used her federal power to cover for her negligence in California and violate the testimony she gave Congress while under oath,” said Steel, who represents a large chunk of Orange County.

“Further, in that same hearing, Julie Su declined to take responsibility for the fraud incurred on her watch in California – even though the state auditor warned that her programs were uniquely vulnerable. Now, her Department of Labor has disgracefully cleared the books,” added Rep. Steel.

It is at this point that we come into play – the letter to Su references a Globe/Point story about Su’s ineptitude.   This piece revealed that Su had in fact wiped the debt clean, unbeknownst to many of her Congressional overseers.   

The story incensed a number of members of Congress, hence Steel’s demand:

Accordingly, we are requesting your complete response to the questions provided in the May 16, 2024 letter and a full explanation of your contradictory statement before the House Committee on Education and the Workforce on May 1, 2024. Please note that the pattern and practice of non-responsiveness is a grave impediment to effective oversight.

We will see if Su answers truthfully – this time.