FILE - Keith Sonderling, President Donald Trump's nominee to be Deputy Secretary of Labor, appears before a Senate Committee on Health, Education, Labor, and Pensions hearing for his pending confirmation on Capitol Hill, Feb. 27, 2025, in Washington. (AP Photo/Rod Lamkey Jr., File)

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.


 We are officially putting governors on notice,  Acting Labor Secretary Keith Sonderling said in a statement Wednesday.  The American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars - no state should allow it either. If states allow it, they will suffer the consequences. 

Labor Department offers few details

The Labor Department said Wednesday that poor oversight, outdated technology, weak identity verification and lax controls have  allowed unprecedented fraud to flourish. 

In its announcement, it cited problems in California, Illinois and New York - three states where Democrats control the governments.

California Gov. Gavin Newsom's office blasted the move and criticized  lax regulations and rushed distribution  of unemployment benefits by the first Trump administration during the COVID-19 pandemic.

 Meanwhile California outperforms other states in addressing fraud,  Newsom spokesperson Marissa Saldivar said in a statement.

The federal Labor Department did not immediately respond to questions from The Associated Press about the details of the alleged fraud.

The unemployment insurance program has come into question before

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