{"id":2615069,"date":"2026-06-17T09:16:01","date_gmt":"2026-06-17T13:16:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/labor-department-threatens-to-withhold-state-funds-over-ui-fraud\/"},"modified":"2026-06-17T09:17:37","modified_gmt":"2026-06-17T13:17:37","slug":"labor-department-threatens-to-withhold-state-funds-over-ui-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/labor-department-threatens-to-withhold-state-funds-over-ui-fraud\/","title":{"rendered":"Labor Department threatens to withhold state funds over UI fraud"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Flabor-department-threatens-to-withhold-state-funds-over-ui-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2615069&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Department of Labor threatened to withhold funds from states if they did not take further steps to address unemployment fraud and misuse. Under the Trump administration&#8217;s efforts to combat waste and abuse, Vice President JD Vance\u2019s Task Force is now focusing on unemployment program fraud. Acting Secretary Keith Sonderling sent letters to 53 states and territories, warning them to take action or face consequences, emphasizing that taxpayers will no longer tolerate fraud and abuse. the department highlighted cases of important fraud,including California\u2019s $20 billion debt,New York\u2019s $2 million daily loss,and Illinois\u2019s <a href=\"https:\/\/amzn.to\/3YuVZYV\" >high improper payment rates<\/a>.During the pandemic, unemployment insurance fraud surged, estimated at between $100 billion and $135 billion nationally, with both blue and red states affected.Notable examples include individuals receiving millions in fraudulently obtained benefits, including a man from the Bronx who got $1.5 million over 10 months and a Nigerian official with $350,000 in six weeks. The overall <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inspector-general-46-billion-in-covid-unemployment-subsidies-probably-went-to-fraudsters\/\" title=\"Inspector General:  Billion In \u2018Covid\u2019 Unemployment Subsidies Probably Went To ...sters\">pandemic-related unemployment fraud<\/a> may represent the largest wave in U.S. history. Authorities are now committed to using enforcement tools to recover stolen funds and ensure benefits go only to eligible Americans.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/department-of-labor\/\" type=\"post_tag\" id=\"1465\">Department of Labor<\/a> threatened to withhold funds from states if their governors didn\u2019t take further action to combat unemployment <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/fraud\/\" type=\"post_tag\" id=\"3188\">fraud<\/a> and waste.<\/p>\n<p class=\"wp-block-paragraph\">As part of the Trump administration\u2019s wider efforts to combat waste, fraud, and abuse, Vice President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/jd-vance\/\" type=\"post_tag\" id=\"7658\">JD Vance\u2019s<\/a> Task Force to Eliminate Fraud is now focusing on state <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/unemployment\/\" type=\"post_tag\" id=\"897\">unemployment<\/a> 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.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4608693\/trump-iran-deal-very-strong-g7\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Trump says Iran deal is \u2018very strong\u2019 but \u2018nobody knows what it is\u2019<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4611633\/trump-obama-lock-horns-new-iran-deal\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Trump and Obama lock horns as White House tries to sell new Iran deal<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4610684\/vance-hitches-political-wagon-iran-deal-fate\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Vance hitches his political wagon to Iran deal\u2019s fate<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">\u201cWe are officially putting governors on notice,\u201d<strong> <\/strong>Sonderling said in a statement. \u201cThe American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars \u2014 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.\u201d <\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">\u201cThe 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,\u201d Inspector General Anthony D\u2019Esposito said.<\/p>\n<p class=\"wp-block-paragraph\">The press release highlighted three of the most egregious recent examples, including California\u2019s $20 billion debt to the federal government over the mismanagement of its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-choice-to-oversee-covid-unemployment-benefits-lost-600-million-in-coronavirus-relief-to-nigerian-scammers\/\" title=\"Joe Biden\u2019s Choice To Oversee COVID ... Lost 0 Million In Coronavirus Relief To Nigerian Scammers\">unemployment insurance program<\/a>, New York\u2019s estimated loss of $2 million per day over fraud and improper payments, and Illinois having one of the highest improper payment rates in the country.<\/p>\n<p class=\"wp-block-paragraph\">Unemployment insurance fraud reached new heights during the COVID-19 pandemic. The Government Accountability Office estimated that unemployment insurance fraud totaled $100-$135 billion, or 11% to 15% of all unemployment insurance benefits paid during the pandemic period.<\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Blue states such as California and New York stand out due to the scale of their fraud, but red and purple states have also experienced significant fraud. The Department of Justice <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.justice.gov\/opa\/pr\/two-men-sentenced-17m-covid-19-unemployment-fraud\" type=\"link\" id=\"https:\/\/www.justice.gov\/opa\/pr\/two-men-sentenced-17m-covid-19-unemployment-fraud\">charged<\/a> two Georgia men with defrauding the Georgia Department of Labor in December after they received over $17 million in unemployment insurance payments.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/opinion\/editorials\/4606514\/ending-la-homeless-industrial-complex\/\" type=\"link\" id=\"https:\/\/www.washingtonexaminer.com\/opinion\/editorials\/4606514\/ending-la-homeless-industrial-complex\/\">ENDING LA\u2019S HOMELESS INDUSTRIAL COMPLEX<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">A July 2021 <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.propublica.org\/article\/how-unemployment-insurance-fraud-exploded-during-the-pandemic\" type=\"link\" id=\"https:\/\/www.propublica.org\/article\/how-unemployment-insurance-fraud-exploded-during-the-pandemic\"><em>ProPublica<\/em> report<\/a> highlighted some of the most absurd individual cases of fraud, including a man from the Bronx receiving $1.5 million in unemployment insurance over 10 months and a Nigerian government official receiving $350,000 in under six weeks. The Labor Department <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.oig.dol.gov\/public\/reports\/oa\/2021\/19-21-002-03-315.pdf\" type=\"link\" id=\"https:\/\/www.oig.dol.gov\/public\/reports\/oa\/2021\/19-21-002-03-315.pdf\">found<\/a> that one man applied for unemployment benefits in 40 states, receiving payouts from 29 states totaling over $200,000.<\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The scale of the unemployment insurance fraud during the pandemic makes it possibly the largest wave of fraud in U.S. history.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Labor Dept. warns states to fight unemployment fraud or lose funds<\/p>\n","protected":false},"author":2653,"featured_media":2615070,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/AP20129833566661.webp?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[43425,51601,42046,42351,81304],"class_list":["post-2615069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-fraud-prevention","tag-government-funding-2","tag-labor-department","tag-state-funds","tag-unemployment-insurance"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/AP20129833566661.webp?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2615069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2653"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2615069"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2615069\/revisions"}],"predecessor-version":[{"id":2615073,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2615069\/revisions\/2615073"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2615070"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2615069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2615069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2615069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}