Trump threatens to pull unemployment benefits from all states for the first time in history

Trump threatens to pull unemployment benefits from all states for the first time in history Labor chief is ‘putting governors on notice’ with administration’s crusade against alleged fraud - Bookmark - CommentsGo to comments Donald Trump’s administration is threatening to withdraw federal funding for unemployment assistance in all 50 states as part of the president’s nationwide campaign against “fraud” in government spending. In a letter to the governors of 53 states and territories, acting Labor Secretary Keith Sonderling warned that the federal government would use “every available tool” to combat “waste, fraud and abuse” within state-run unemployment insurance programs, including “withholding administrative funds from states” for the first time in history. There is no single national program for unemployment support, though the federal government partners with state agencies to support temporary financial assistance to out-of-work Americans. Nearly 2 million people are currently receiving those benefits, while roughly 229,000 people are filing initial jobless claims every week, according to the Labor Department. But most unemployed Americans face bureaucratic hurdles to receive those benefits. Most states provide roughly six months of payments to qualified Americans. Those programs are typically covered by individual states through state unemployment taxes paid by employers, but the federal government provides support for administrative costs. Without that support, the loss in funding could force state-run systems to shut down. “We are officially putting governors on notice,” Sonderling said in a statement Wednesday. “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,” he added. “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.” This is a developing story Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments