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The Independent UK
The Independent UK
World
Geoff Mulvihill

US tells states to deal with unemployment fraud -- or face penalties

Unemployment Funds - (Copyright 2025 The Associated Press. All rights reserved.)

The U.S. Department of Labor told states Wednesday to take immediate action to combat fraud, waste and abuse in their unemployment insurance programs — 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 Donald Trump's administration 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.

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