Secretary Chavez-DeRemer fulfills promise to claw back billions more in unusable COVID funding

News Release

Secretary Chavez-DeRemer fulfills promise to claw back billions more in unusable COVID funding

WASHINGTON - U.S. Department of Labor Secretary Lori Chavez-DeRemer today announced that over $4.4 billion in unspent and unusable COVID-era funding has been returned to the U.S. Department of Treasury's General Fund, completing a reconciliation process that began in Marchwhen $1.4 billion was returned to taxpayers.

The funding was originally intended for states to use for temporary unemployment insurance during the pandemic. The Department's Office of Inspector Generalrecommended that its Employment and Training Administration develop a plan to reconcile and return these unused funds in a 2023 audit.

"The pandemic is long behind us - it's the federal government's responsibility to return unusable COVID-era funding to the American people and ensure these dollars are being utilized effectively," said Secretary Chavez-DeRemer. "Under President Trump's leadership, the Department of Labor is delivering on its commitment to root out waste, fraud, and abuse, and we will continue to be responsible stewards of taxpayers' hard-earned dollars."

This funding originated under the Coronavirus Aid, Relief, and Economic Security Act in March 2020, which established the Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week program. The program was intended to provide expanded unemployment insurance to Americans unable to work due to the pandemic.

Read the full audit here.