The told states Wednesday to take immediate action to combat fraud, waste and abuse in their unemployment insurance programs 鈥� and that they could have administrative funds withheld if they don’t comply.
The letters, which went to the governors of every state, are the latest in a series of actions from President focused on fraud, waste and abuse in state-run programs that include federal funding. Like with most of the other similar announcements, the administration focused on issues in states where Democrats control the government.
鈥淲e are officially putting governors on notice,鈥� Acting Labor Secretary Keith Sonderling said in a statement Wednesday. 鈥淭he American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars 鈥� no state should allow it either. If states allow it, they will suffer the consequences.鈥�
Labor Department offers few details
The Labor Department said Wednesday that poor oversight, outdated technology, weak identity verification and lax controls have 鈥渁llowed unprecedented fraud to flourish.鈥�
In its announcement, it cited problems in California, Illinois and New York 鈥� three states where Democrats control the governments.
California Gov. Gavin 太子探花om鈥檚 office blasted the move and criticized 鈥渓ax regulations and rushed distribution鈥� of unemployment benefits by the first Trump administration during the COVID-19 pandemic.
鈥淢eanwhile California outperforms other states in addressing fraud,鈥� 太子探花om spokesperson Marissa Saldivar said in a statement.
The federal Labor Department did not immediately respond to questions from The Associated Press about the details of the alleged fraud.
The unemployment insurance program has come into question before
The nonpartisan Government Accountability Office estimated that fraud accounted for between 11% and 15% of the amount paid out through unemployment insurance programs from April 2020 through May 2023, when the nation was under a public health emergency for the pandemic.
During that time 鈥� which included the last months of Trump’s first term and over half of former President Joe Biden’s time in office 鈥� access to the funds was eased, and the as the money was going out.
In the new letter to the states, the department said that consequences from pandemic-era fraud 鈥渁re still playing out.鈥�
The Labor Department said states would receive further directives in coming weeks.
The administration has focused on fraud in state-federal programs
Vice President JD Vance is overseeing an focused on potential misuse of social programs.
The Department of Health and Human Services tried to withhold money for child care subsidies and other social service programs from five states 鈥� all governed by Democrats 鈥� but has been . The department has also announced it鈥檚 to police how states and other recipients of federal dollars are auditing their program.
The Department of Agriculture has threatened to withhold administrative funds from states that don鈥檛 provide data on participants in the Supplemental Nutrition Assistance Program, including their immigration status.
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Associated Press reporter Sophie Austin in Sacramento, California, contributed to this article.
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