Labor Secretary Chavez-DeRemer recovers $1.4 billion in misused pandemic unemployment funds, with plans to claw back another $2.9 billion that sat unused while Americans struggled under inflation.
At a Glance
- The Department of Labor has successfully reclaimed $1.4 billion in unused pandemic unemployment funds from states deemed ineligible after a 2023 audit
- Secretary Lori Chavez-DeRemer is pursuing an additional $2.9 billion in unspent pandemic-era funds
- The funds, originating from the CARES Act of 2020, have been returned to the Treasury’s General Fund
- An audit revealed $105.1 million in questionable costs from Delaware, Oregon, Mississippi, and Louisiana
- The initiative aligns with President Trump’s focus on government efficiency and eliminating waste, fraud, and abuse
Billions Recovered from COVID-Era Spending
While Americans continue struggling with record-high inflation, the Department of Labor has discovered billions in taxpayer dollars sitting unused since the pandemic. Labor Secretary Lori Chavez-DeRemer announced the successful recovery of $1.4 billion in COVID-era unemployment funds that were distributed to states but never utilized for their intended purpose. These funds, meant to provide temporary relief during lockdowns, instead collected dust in state coffers long after pandemic programs ended – a perfect example of bureaucratic waste that continues plaguing hardworking Americans.
The reclaimed funds were originally allocated through the Coronavirus Aid, Relief, and Economic Security Act of March 2020, which provided emergency assistance to Americans during the early pandemic. Secretary Chavez-DeRemer’s office confirmed the money has been returned to the U.S. Treasury’s General Fund, marking a significant victory for taxpayers who have watched government spending spiral out of control in recent years. The action represents just the first phase of a broader initiative to recapture misused pandemic-era funds.
Billions More Targeted for Recovery
Secretary Chavez-DeRemer isn’t stopping with the initial $1.4 billion recovery. Her department is actively working to reclaim an additional $2.9 billion in unused funds, bringing the total recovery effort to approximately $4.3 billion. The aggressive clawback follows a 2023 audit by the department’s Office of Inspector General, which revealed several states continued spending millions despite no longer meeting necessary requirements after the pandemic programs ended – essentially treating taxpayer emergency funds as a slush fund.
“There’s no reason leftover COVID unemployment funds should still be collecting dust,” said Chavez-DeRemer. “Any money still sitting around for pandemic-era unemployment funds is a clear misuse of Americans’ hard-earned tax dollars.”
The audit identified alarming financial mismanagement across multiple states. A staggering $105.1 million in questionable costs were uncovered in Delaware, Oregon, Mississippi, and Louisiana alone. These findings highlight a pattern of fiscal irresponsibility that has persisted since the pandemic spending spree began, with minimal accountability from previous administration officials who authorized the expenditures.
Trump Administration Prioritizes Fiscal Responsibility
The recovery effort aligns perfectly with President Trump’s broader focus on government efficiency and financial accountability. Deputy Secretary of Labor Keith Sonderling emphasized the significance of returning these funds to taxpayers after years of neglect. “It’s unacceptable that billions of dollars went unchecked in a program that ended several years ago. 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 stated.
“I’m keeping my promise to be a good steward of your money by rooting out waste to ensure American Workers always come first,” Labor Secretary Lori Chavez-DeRemer declared.
Secretary Chavez-DeRemer has committed to partnering with the Department of Government Efficiency (DOGE) to optimize resource management and eliminate wasteful spending throughout the Labor Department. This initiative demonstrates a renewed commitment to fiscal conservatism after years of unchecked spending that has contributed to the crippling inflation Americans now face. The Labor Department is refocusing on its core mission of promoting job creation, workforce development, and ensuring safe working conditions under the Trump administration’s priorities.
