Performing Labor Secretary Keith Sonderling joins ‘Mornings with Maria’ to announce a sweeping crackdown on unemployment fraud and warn states they might lose federal funding in the event that they fail to conform.
FIRST ON FOX — Performing U.S. Labor Secretary Keith Sonderling despatched letters to the governors of 53 U.S. states and territories on Wednesday “demanding speedy motion to fight fraud, waste, and abuse inside the unemployment insurance coverage program.”
“Within the letters, the division introduced its intent to crack down on rampant fraud and finish mismanagement, improper funds, and corruption inside the UI program. Performing Secretary Sonderling notified states that, in partnership with the Workplace of the Inspector Normal, the division will use each accessible enforcement device — together with withholding administrative funds from states for the primary time in historical past — to make sure compliance in defending UI system integrity and safeguarding taxpayer {dollars},” the division mentioned in a press release first obtained by FOX Enterprise.
“We’re formally placing governors on discover,” Sonderling mentioned in a press release. “The American folks will now not tolerate the blatant waste, fraud, and abuse of their hard-earned tax {dollars} — no state ought to permit it both. If states permit it, they’ll endure the results. This division is now not afraid to make use of each lever accessible to make sure taxpayer cash is protected.”
LABOR SECRETARY LORI CHAVEZ-DEREMER EXITS TRUMP ADMIN; KEITH SONDERLING NAMED ACTING HEAD
Performing U.S. Labor Secretary Keith Sonderling testifies earlier than the Senate Appropriations Committee Subcommittee on Departments of Labor, Well being and Human Providers, and Schooling, and Associated Businesses on the Dirksen Senate Workplace Constructing on Might 19, 20 (Kevin Dietsch/Getty Photographs / Getty Photographs)
“The times of excuses are over. States that fail to guard taxpayer {dollars} ought to count on penalties. Performing Secretary of Labor Keith Sonderling and I’ll use each accessible enforcement device to demand accountability, recuperate stolen cash, and guarantee unemployment advantages solely go to eligible People,” Division of Labor Inspector Normal Anthony D’Esposito added.
Sonderling mentioned his push to root out unemployment insurance coverage fraud throughout a Wednesday morning look on Fox Enterprise’ “Mornings With Maria.”
“New York is paying over $2 million {dollars} a day in improper funds” pertaining to “unemployment insurance coverage,” he asserted, including that the state of California owes greater than $20 billion to a “belief fund.”
TRUMP CLAIMS VANCE’S ANTI-FRAUD TASK FORCE COULD ‘SAVE SOCIAL SECURITY’ AND BALANCE BUDGET

President Donald Trump and Vice President JD Vance salute through the Nationwide Memorial Day Observance on the Memorial Amphitheatre in Arlington Nationwide Cemetery in Arlington, Va., on Might 25, 2026. (Kent NISHIMURA / AFP by way of Getty Photographs / Getty Photographs)
He mentioned “between New York, New Jersey, Pennsylvania, Massachusetts and Illinois,” these states final yr paid greater than $2.5 billion in “improper funds.”
He declared that he would make the most of “each accessible device the Division of Labor has to carry these governors accountable to cease the theft of your taxpayer {dollars}.”
VANCE TASK FORCE REVEALS BIDEN ADMIN ‘PROTECTED’ 562K PANDEMIC LOANS IN $22.2B SUSPECTED FRAUD SCHEME

Performing U.S. Legal professional Normal Todd Blanche speaks as U.S. Vice President JD Vance and Performing U.S. Labor Secretary Keith Sonderling hear throughout a Cupboard assembly within the Cupboard Room of the White Home on Might 27, 2026, in Washington, D.C. (Win McNamee/Getty Photographs / Getty Photographs)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Sonderling is serving on President Donald Trump’s Job Power to Get rid of Fraud that’s being spearheaded by Vice President JD Vance.

