Episode
Labor Dept Targets Fraudulent Unemployment
- Published
- Jun 17, 2026
- Duration seconds
- 104
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Summary
The Department of Labor is sending a stern warning to states over rampant fraud in unemployment programs, threatening to withhold funds unless they clean up their act—blaming weak oversight, outdated tech, and poor identity checks. California, Illinois, and New York are singled out, despite Democratic leadership, as the acting Labor Secretary vows taxpayers won’t tolerate waste anymore. States like California push back, arguing they’re doing better than others and blaming the Trump administration’s pandemic-era speed in distributing benefits. GAO estimates 11-15% of pandemic unemployment payouts may have been fraudulent. More guidance is coming, and other agencies are joining the crackdown—with AI now helping track misuse of federal funds. Support the show: Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN: [email protected] This is an automated, high-level news summary based on public reporting. Report issues to [email protected]. View sources & latest updates: https://sources.thednn.ai/154889e163bca2de