Labor Dept Warns States on Unemployment Fraud

The Department of Labor is issuing a stern warning to states, threatening to cut administrative funds unless they crack down on unemployment fraud, waste, and abuse — a move that singles out Democratic-led states like California, Illinois, and New York. With outdated tech, weak oversight, and insufficient identity checks enabling widespread fraud — estimated at 11-15% of pandemic-era payouts — the federal government is deploying AI and task forces to audit state systems. States like California are pushing back, claiming they’re already effective and blaming past administrations for loosening pandemic-era rules. The stakes are high: failure to comply could mean lost federal dollars — and political fallout. 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/8c87d8963d71fe06