Welfare fraud returned to the spotlight Friday as New York City mayor-elect Zohran Mamdani announced that former U.S. acting labor secretary Julie Su will serve as the city’s first deputy mayor for economic justice. The welfare fraud concerns stem from Su’s record in California, where she oversaw massive unemployment losses during the pandemic.
“Welcome to a New Era, Julie Su!” Mamdani wrote on X. “As former U.S. secretary of labor, Julie played a central role in fighting for workers, ensuring a just day’s pay for a hard day’s work and saving the pensions of more than a million union workers and retirees.” Su previously served two years as acting labor secretary under former president Joe Biden.
Her tenure as California labor secretary remains controversial. During pandemic lockdowns, Su led the state’s Employment Development Department as it paid out an estimated $31 billion in fraudulent unemployment claims. The agency froze legitimate checks while failing to halt suspicious payments, leaving California’s unemployment insurance fund nearly $20 billion in debt.
Republicans raised alarms during Su’s federal confirmation process. Sen. Bill Cassidy (R- LA) said, “Julie Su has an extensive record of partisan activism and promoting policies that undermine workers to the benefit of politically connected labor unions.” He added, “A qualified Secretary of Labor needs to successfully handle negotiations, manage a department properly, and refrain from partisan activism. I haven’t seen evidence of Julie Su’s ability to do any of those three things.”
A Cassidy spokesman later said, “There’s a reason Julie Su’s nomination failed to earn support from Democrats or Republicans… Julie Su is a perfect fit for the Mamdani administration.”
Mamdani dismissed criticism, saying, “I’m aware of the deputy mayor’s record, and I’m very excited to have her.” He added, “It is a moment of incredible excitement for myself and the entire team to have her.”
The appointment follows other controversies in Mamdani’s transition, raising questions about oversight as New York City faces ongoing fiscal pressures.
