Labor Department threatens to withhold state funds over UI fraud
The Department of Labor threatened to withhold funds from states if their governors didn’t take further action to combat unemployment fraud and waste.
TL;DR
- The Department of Labor is threatening to withhold funds from states over unemployment fraud and waste.
- Vice President JD Vance's Task Force to Eliminate Fraud is focusing on state unemployment programs.
- Acting U.S. Secretary of Labor Keith Sonderling sent letters to governors demanding action.
- Sonderling stated that states allowing waste, fraud, and abuse will face consequences.
- Inspector General Anthony D’Esposito pledged to use enforcement tools to recover stolen money and ensure benefits go to eligible Americans.
- Examples of mismanagement cited include California's $20 billion debt, New York's estimated $2 million daily loss, and Illinois' high improper payment rates.