WASHINGTON, D.C. — The United States Department of Labor and its Office of Inspector General are expanding coordination on unemployment insurance investigations as the Trump administration intensifies scrutiny of fraud and improper payments in state-administered benefit programs.
The initiative aligns with President Donald Trump’s executive order establishing a federal “Task Force to Eliminate Fraud,” led by Vice President JD Vance. Labor officials described the effort as a broader push to strengthen oversight of unemployment insurance systems and increase enforcement against fraudulent claims.
Acting Labor Secretary Keith Sonderling characterized unemployment insurance systems nationwide as facing “significant financial and performance failures,” while outlining a joint effort between federal investigators and agency officials to identify fraud and misuse of taxpayer funds.
Labor Inspector General Anthony P. D’Esposito detailed plans to place investigators alongside strike teams deployed through the department’s Employment and Training Administration, using data analysis and investigative support to identify fraudulent activity before payments are issued.
Federal officials stated the task force is focused on tightening eligibility enforcement, closing oversight gaps and coordinating investigations tied to benefit fraud.
The department identified California, Illinois, Massachusetts, New Jersey, New York and Pennsylvania among the states with the largest unemployment insurance performance and fraud concerns. According to Labor Department figures, those six states collectively distribute nearly $19 billion annually in unemployment insurance benefits.
Federal data cited by the department showed the six states issued more than $2.6 billion in improper unemployment insurance payments during fiscal year 2025, including more than $1.2 billion categorized as fraudulent. California, Massachusetts and New York recorded the highest levels of fraud exposure, according to the agency.
Task Force Executive Director Scott Brady described the expanded coordination effort as a step intended to accelerate investigations and enforcement actions tied to federal benefit fraud.
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