The Department of Labor threatened to withhold funds from states if their governors didn’t take further action to combat unemployment fraud and waste.As part of the Trump administration’s wider efforts to combat waste, fraud, and abuse, Vice President JD Vance’s Task Force to Eliminate Fraud is now focusing on state unemployment programs. Acting U.S. Secretary of Labor Keith Sonderling issued letters demanding action from the governors of 53 U.S. states and territories on Wednesday.“We are officially putting governors on notice,” Sonderling said in a statement. “The American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars — no state should allow it either. If states allow it, they will suffer the consequences. This department is no longer afraid to use every lever available to ensure taxpayer money is protected.”
“The days of excuses are over. States that fail to protect taxpayer dollars should expect consequences. Acting Secretary of Labor Keith Sonderling and I will use every available enforcement tool to demand accountability, recover stolen money, and ensure unemployment benefits only go to eligible Americans,” Inspector General Anthony D’Esposito said.
