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June 17, 2026
Labor Department Threatens Funding Cuts to States Over Unemployment Fraud
- The U.S. Department of Labor has warned all 50 states that failure to combat unemployment fraud could result in withholding federal funds for the first time.
- Acting Labor Secretary Keith Sonderling stated that the federal government will use all available tools to combat fraud in state-run unemployment programs.
- Nearly 2 million Americans are currently receiving unemployment benefits, which could be jeopardized by funding cuts to state programs.
3 Sources
- The Trump administration is warning all 50 states that they risk losing federal funding for unemployment insurance benefits if they don’t comply with antifraud effortsJun 17, 2026 at 10:00 AM · WSJ
- US tells states to deal with unemployment fraud -- or face penaltiesJun 17, 2026 at 5:26 PM · Independent
- Trump threatens to pull unemployment benefits from all states for the first time in historyJun 17, 2026 at 7:32 PM · Independent