DOL returns $1.4B in unused COVID-era funding — and seeks to recover more

On Monday, the Department of Labor announced that it had identified $1.4 billion in unused COVID-era funding.

A press release from the DOL noted that the agency is working to recover another $2.9 billion.

'Government waste hates to see us coming.'

"The roughly $4.3 billion was intended for states to use for temporary unemployment insurance during the pandemic. Instead, several states continued spending millions of dollars despite no longer meeting necessary requirements, which was uncovered in a 2023 audit conducted by the department's Office of Inspector General," it read.

The unused funding was turned over to the Department of Treasury's General Fund, the DOL reported.

DOL Secretary Lori Chavez-DeRemer stated, "Any money still sitting around for pandemic-era unemployment funds is a clear misuse of Americans' hard-earned tax dollars."

"I'm keeping my promise to be a good steward of your money by rooting out waste to ensure American Workers always come First," she added.

Chavez-DeRemer told Fox News Digital, "There's no reason leftover COVID unemployment funds should still be collecting dust."

DOL Deputy Secretary Keith Sonderling called it "unacceptable" that the taxpayer funds "went unchecked" for several years.

"In a huge win for the American taxpayer, we've clawed back these unused funds and will keep working to eliminate waste, fraud, and abuse," Sonderling vowed.

The funds were a part of the Coronavirus Aid, Relief, and Economic Security Act in 2020, which created a program to provide "expanded unemployment insurance."

The 45-page IG report found that, although the program ended in 2021, four states were allowed to access the reimbursement money "despite not meeting program requirements." According to the report, the four states collected $105.1 million in reimbursements they were not eligible to receive.

The report claimed the issues occurred because there were not "sufficient controls" to ensure states were eligible or that unused funds were returned to the federal government.

Last week, the Department of Government Efficiency applauded Chavez-DeRemer and Sonderling for canceling $577 million in "America Last" grants, saving taxpayers $237 million.

"Government waste hates to see us coming," the DOL wrote in a post on X.

On Monday evening, the White House announced that President Donald Trump has tapped former Rep. Anthony D'Esposito (R-N.Y.) to serve as the DOL's inspector general.

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