Acting Labor Secretary pressures 53 states and territories to tackle unemployment insurance program fraud

Acting Labor Secretary Keith Sonderling joins 'Mornings with Maria' to announce a sweeping crackdown on unemployment fraud. warn states they could lose federal funding if they fail to comply.

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. 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. safeguarding taxpayer dollars," the department said in a statement first obtained by FOX Business.

"We are officially puttinggovernorson notice," Sonderling said in a statement. "The American people will no longer tolerate the blatant waste, fraud,. 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."

LABOR SECRETARY LORI CHAVEZ-DEREMER EXITS TRUMP ADMIN; KEITH SONDERLING NAMED ACTING HEAD

Acting U.S. Labor Secretary Keith Sonderling testifies before the Senate Appropriations Committee Subcommittee on Departments of Labor, Health. Human Services, and Education, and Related Agencies at the Dirksen Senate Office Building on May 19, 20(Kevin Dietsch/Getty Images / Getty Images)

"The days of excuses are over. States that fail to protect taxpayer dollars should expect consequences. Acting Secretary of Labor Keith Sonderling. 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 Yorkis 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."

TRUMP CLAIMS VANCE'S ANTI-FRAUD TASK FORCE COULD ‘SAVE SOCIAL SECURITY’ AND BALANCE BUDGET

President Donald Trump. Vice President JD Vance salute during the National Memorial Day Observance at the Memorial Amphitheatre in Arlington National Cemetery in Arlington, Va., on May 25, 2026.(Kent NISHIMURA / AFP via Getty Images / Getty Images)

He said "between New York, New Jersey, Pennsylvania, Massachusetts. Illinois," those states last year paid more than $2.5 billion in "improper payments."

He declared. he would utilize "every available tool the Department of Labor has to hold these governors accountable to stop the theft of your taxpayer dollars."

VANCE TASK FORCE REVEALS BIDEN ADMIN ‘PROTECTED’ 562K PANDEMIC LOANS IN $22.2B SUSPECTED FRAUD SCHEME

Acting U.S. Attorney General Todd Blanche speaks as U.S. Vice President JD Vance and Acting U.S. Labor Secretary Keith Sonderling listen during a Cabinet meeting in the Cabinet Room of the White House on May 27. 2026, in Washington, D.C.(Win McNamee/Getty Images / Getty Images)

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Sonderling is serving on PresidentDonald Trump'sTask Force to Eliminate Fraud that is being spearheaded by Vice President JD Vance.

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