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Labor Dept deploys ‘strike team’ to California over $21B unemployment debt, fraud concerns

Labor
New York Post Fews App News Provider
Fews App Post Time 5h ago

Originally Published by: Trump approves DC emergency declaration over Potomac sewage spill, FEMA mobilizes DOGE’s Medicaid data dump aims to expose fraud — but privacy and legal hurdles loom Judge forces CA hospital to keep trans treatments for minors despite Trump funding threat The Labor Department deployed a “strike team” to California to address federal findings of improper payments and alleged fraud within the state’s unemployment insurance (UI) program. California has been found to have a depleted UI trust fund, along with $21 billion in borrowed federal funds to keep the system running — which federal officials say has led state employers to pay higher UI taxes to repay the debt. In a statement, the department cited an 83-page California State Auditor report that determined the state’s UI system is high-risk, in part due to “inadequate fraud prevention and claimant service [in its employment development department (EDD)], as well as a high rate of overturned eligibility decisions in its Unemployment Insurance Program.

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