BILLIONS VANISHED: Pritzker’s Sanctuary State Experiment Linked to $5.2 Billion Unemployment Heist and $1.6 Billion Migrant Healthcare Disaster
Audits expose “ghost claims,” ineligible enrollees, and almost zero prosecutions — while the governor prepares to sign an even stronger sanctuary bill that critics say will make the problem worse
Illinois taxpayers have been hit with two of the largest public-funds scandals in state history — and both unfolded under Governor JB Pritzker’s watch.
$5.2 billion in unemployment benefits looted during the pandemic, much of it through fake and deceased (“ghost”) claimants.
$1.6 billion blown on a migrant healthcare program that auditors say was riddled with ineligible enrollees and outright fraud.
Critics — including state auditors, Republican lawmakers, and a growing chorus of fed-up residents — now point to a common thread: Pritzker’s aggressive sanctuary policies that deliberately limit identity and immigration-status verification across state agencies. Those same critics warn the governor is about to double down by signing Senate Bill 516, a new law that would further prohibit state workers from asking about immigration status when handing out benefits.
The $5.2 Billion Unemployment Theft That Was Never Seriously Pursued
A 2023 performance audit by the non-partisan Illinois Auditor General found that IDES paid out $5.2 billion in improper or fraudulent unemployment claims from 2020–2022. Of that total, $2.7 billion was outright fraud — including millions paid to dead people, prisoners, and organized identity-theft rings operating from Nigeria, Russia, and China.The audit explicitly criticized the Pritzker administration for delaying basic anti-fraud tools (such as ID.me identity verification) for more than a year while rushing checks out the door. By the time safeguards were finally added, the money was long gone.As of December 2025, only about $1 billion has been clawed back — mostly through automatic tax-refund intercepts — and fewer than 200 cases have been referred for prosecution. Large-scale fraud rings have faced virtually no consequences.
The $1.6 Billion Migrant Healthcare Program That “Exploded” Out of Control
In 2020, Governor Pritzker launched state-funded healthcare for undocumented immigrants. What started as a modest pilot ballooned into a $1.6 billion liability.A scathing February 2025 compliance audit revealed:
The adult program cost $485 million in a single year — 282% above projections.
More than 6,000 “undocumented” enrollees somehow possessed Social Security numbers, meaning they should never have been billed to the state program.
Hundreds of people under 65 were enrolled in the seniors-only plan.
Long-term residents eligible for federal Medicaid were allowed to double-dip at Illinois taxpayer expense.
Rather than launch fraud investigations, the Pritzker administration simply canceled the adult program in July 2025 and kept the seniors’ coverage running at $110 million a year.
Sanctuary Policies: The Missing Verification Link
Critics argue the common denominator in both scandals is Illinois’ sanctuary framework, which since 2021 has barred state agencies from sharing immigration data with federal authorities and discourages status inquiries for most public benefits. Auditors and GOP lawmakers say that when you combine “don’t ask about immigration status” with pandemic-era “pay first, verify never” rules, you create a perfect environment for ghost claims and organized theft. Now, with Senate Bill 516 awaiting the governor’s signature, Illinois is poised to go further — explicitly prohibiting state employees from asking about immigration status when administering benefits and expanding free interpreter services in court. Opponents call it a green light for the next multibillion-dollar scandal.
A Governor Facing Few Consequences
Despite presiding over two of the costliest fraud episodes in Illinois history, Governor Pritzker has faced no criminal referrals, no special prosecutor, and no legislative impeachment push. Attorney General Kwame Raoul — a major recipient of Pritzker-family political donations — has prosecuted almost none of the unemployment fraud cases referred to his office.
With the 2026 election cycle already underway, critics say the sanctuary expansion is less about compassion and more about cementing a political base while the bill for the last round of unchecked spending lands on Illinois families and businesses.
Sources
Illinois Auditor General – Performance Audit of IDES Unemployment Insurance Overpayments (July 2023)
https://www.auditor.illinois.gov/Audit-Reports/Performance-Special-Multi/Performance-Audits/2023_Releases/23-IDES-UI-Overpayments-Perf-Full.pdfIllinois Auditor General – Health Benefits for Immigrant Adults and Seniors Programs (February 2025)
https://www.auditor.illinois.gov/Audit-Reports/Compliance-Audits/2025_Releases/25-HFS-Immigrant-Health-Care-Comp-Full.pdfCapitol News Illinois – Audit finds Illinois immigrant health care program cost nearly $1B more than estimated (Feb 20, 2025)
https://capitolnewsillinois.com/news/audit-finds-illinois-immigrant-health-care-program-cost-nearly-1b-more-than-estimated/Illinois General Assembly – Senate Bill 516 (passed Nov 2025, awaiting signature)
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=516&GAID=17&DocTypeID=SB&SessionID=112Wirepoints – Pritzker ends healthcare for noncitizen adults after program explodes to $1.1 billion (July 2025)
https://wirepoints.org/pritzker-ends-healthcare-for-noncitizen-adults-after-program-explodes-to-1-1-billion-wirepoints/Chicago Tribune – Illinois paid $5.2 billion in fraudulent or improper unemployment benefits during pandemic (July 26, 2023)
https://www.chicagotribune.com/politics/ct-illinois-unemployment-fraud-audit-20230726-story.html