US Department of Labor, Office of the Inspector General collaboration marks new era in stopping unemployment insurance fraud

News Release

US Department of Labor, Office of the Inspector General collaboration marks new era in stopping unemployment insurance fraud

WASHINGTON - The U.S. Department of Labor and its Office of Inspector General has announced a partnership in furtherance of President Donald J. Trump's Executive Order, "Establishing the Task Force to Eliminate Fraud."

Under the leadership of Vice President JD Vance, the department and the OIG will work together to safeguard American taxpayers and address widespread fraud and performance concerns related to the unemployment insurance programs administered across the country.

"Unemployment-insurance systems nationwide face significant financial and performance failures. For too long, these problems have gone unchallenged. That ends now," said Acting Secretary of Labor Keith Sonderling. "The Department of Labor is working alongside OIG agents to investigate potential fraud and misuse. Our mission is clear: Restore accountability and safeguard workers and taxpayers."

This multi-agency partnership within the department demonstrates an unparalleled level of collaboration with the OIG with department program offices and its independent watchdog working shoulder-to-shoulder to stop fraud before taxpayer dollars are put at risk.

"We're taking a proactive approach by working directly with the strike teams deployed by the department's Employment and Training Administration - providing data and analytical capabilities and support, placing investigators at the front lines where the threat begins. Together with the acting secretary, we are committed to a zero-tolerance mission: ensuring not one fraudulent dollar leaves the building," said U.S. Department of Labor Inspector General Anthony P. D'Esposito.

"This partnership gives us a direct line to Vice President Vance's 'Task Force to Eliminate Fraud,' supercharging our investigations and prosecutions to deliver faster, stronger justice and put fraudsters behind bars," D'Esposito added.

Acting Secretary Sonderling and Inspector General D'Esposito both serve on the "Task Force to Eliminate Fraud," which is committed to fighting fraud, closing loopholes, enforcing eligibility rules, and protecting benefits for eligible Americans, while ensuring states administering unemployment insurance benefits do the same.

"Acting Secretary Sonderling and Inspector General D'Esposito are invaluable partners. Today's announcement is a critical step toward stopping the theft from American taxpayers," said Task Force Executive Director Scott Brady.

The resources and executive commitment dedicated by President Trump and Vice President Vance significantly enhance the resources provided to the DOL Office of Unemployment Insurance within ETA and the investigative capacity of OIG, ensuring those who exploit federal benefit programs are held accountable under the law.

Some of the most problematic state unemployment-insurance programs include California, Illinois, Massachusetts, New Jersey, New York, and Pennsylvania. These six states combined are responsible for paying out nearly $19 billion annually in unemployment-insurance benefits.

In fiscal year 2025 alone, these six states issued more than $2.6 billion in improper unemployment-insurance benefits, including over $1.2 billion in fraudulent payments. Additionally, in fiscal year 2025, California, Massachusetts, and New York topped the list of states with the most fraud exposure.