SACRAMENTO, CA — Senator Melissa Hurtado (D-Bakersfield) has called on the California Department of General Services (DGS) to immediately review the state’s contract with the data broker hired by the Employment Development Department (EDD) to verify the identities of Californians applying for unemployment and disability benefits.

In a letter to DGS Procurement Division Deputy Director Angela Shell, Senator Hurtado raised serious concerns about the company’s performance.

“This is unacceptable in a state that has already lost billions to fraud,” said Senator Hurtado. “California taxpayers are still on the hook for more than $20 billion in federal loans taken out to cover pandemic unemployment benefits. We’re paying $1 billion a year in interest alone and the system is projected to lose another $2 billion annually. We cannot afford to keep paying for failure.”

Senator Hurtado also criticized opaque artificial intelligence systems that collect and analyze sensitive personal data—often without clear consent—and highlighted the lack of transparency and due process available to Californians who are misidentified or denied benefits.

Senator Hurtado’s letter urges DGS to review data broker contracts, performance metrics, data practices, and compliance with state requirements.

“These contracted companies are given powerful tools and access to private information, but little accountability. We need to stop blindly trusting black-box algorithms and start demanding real results. The stakes are too high—this is about people’s livelihoods, their privacy, and their trust in government,” Hurtado concluded.

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