Acting Labor Secretary Keith Sonderling stated on Wednesday that his department is turning up the heat on states and territories handing out unemployment payments due to fraud.
In a statement released Wednesday, Sonderling said the Department of Labor will not stand for fraudulent cases involving children receiving unemployment insurance—specifically referencing claims by individuals as young as three years old.
The acting secretary informed governors of all states and territories that they must verify recipients’ eligibility before approving unemployment benefits.
He cited statistics indicating $135 billion in fraudulent unemployment insurance claims nationwide since the onset of the pandemic.
“So just to show you how egregious it got,” Sonderling said, “$1.2 billion went to children under 14—including three-year-olds and five-year-olds.”
He described the numbers as staggering, adding that hundreds of millions of dollars were paid to federal prisoners and that 25,000 individuals over the age of 115 received unemployment benefits. “Obviously, there’s only two or three people, maybe, 114 years old, if they’re lucky,” he said.
Sonderling also noted states had been lax in verifying claims: “It was just widespread fraud. The states weren’t checking. There was no verification system.”
The acting secretary emphasized the administration’s stance: “We see states consistently turning a blind eye to fraud. And we’re not putting up with that anymore.”
A notice sent to governors on Wednesday requires states to verify eligibility before approving jobless claims.
In a department release, Sonderling wrote: “The American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars—no state should allow it either. If states allow it, they will suffer the consequences. This department is no longer afraid to use every lever available to ensure taxpayer money is protected.”
