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09/01/2025
US Department of Labor announces proposal to combat unemployment fraud
U.S. Department of Labor
WASHINGTON – The U.S. Department of Labor today announced a Notice of Proposed Rulemaking to crack down on rampant fraud that has riddled unemployment compensation programs across the nation.
Supporting President Trump’s Executive Order 14243, “Stopping Waste, Fraud, and Abuse by Eliminating Information Silos,” the proposed rule would require the disclosure of state-level UC information to federal officials, including the department’s Office of Inspector General.
“From recovering over $500 million in fraudulent unemployment insurance payments to clawing back billions in unspent and unusable COVID-era unemployment funds, the Labor Department is laser-focused on restoring integrity to our nation’s unemployment insurance programs and safeguarding Americans’ hard-earned tax dollars,” said Secretary of Labor Lori Chavez-DeRemer. “This commonsense proposal will further help us prevent criminals and fraudsters from ripping off taxpayers. Under the direction of President Trump, we’ll continue doubling down on our efforts to root out waste, fraud, and abuse to put the American Worker First.”
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