Acting Labor Secretary pressures 53 states and territories to tackle unemployment insurance program fraud
FIRST ON FOX — Acting U.S. Labor Secretary Keith Sonderling sent letters to the governors of 53 U.S. states and territories on Wednesday "demanding immediate action to combat fraud, waste, and abuse within the unemployment insurance program."
"In the letters, the department announced its intent to crack down on rampant fraud and end mismanagement, improper payments, and corruption within the UI program. Acting Secretary Sonderling notified states that, in partnership with the Office of the Inspector General, the department will use every available enforcement tool — including withholding administrative funds from states for the first time in history — to ensure compliance in protecting UI system integrity and safeguarding taxpayer dollars," the department said in a statement first obtained by FOX Business.
"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."
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"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," Department of Labor Inspector General Anthony D’Esposito added.
Sonderling discussed his push to root out unemployment insurance fraud during a Wednesday morning appearance on Fox Business' "Mornings With Maria."
"New York is paying over $2 million dollars a day in improper payments" pertaining to "unemployment insurance," he asserted, adding that the state of California owes more than $20 billion to a "trust fund."
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He said "between New York, New Jersey, Pennsylvania, Massachusetts and Illinois," those states last year paid more than $2.5 billion in "improper payments."
He declared that he would utilize "every available tool the Department of Labor has to hold these governors accountable to stop the theft of your taxpayer dollars."
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Sonderling is serving on President Donald Trump's Task Force to Eliminate Fraud that is being spearheaded by Vice President JD Vance.
