Trump Labor Department secures eye-popping sum to return to taxpayers amid DOGE push
U.S. Department of Labor Secretary Lori Chavez-DeRemer made a significant announcement on Monday regarding the return of over $1 billion in unused COVID-era funding back to the taxpayer. This move aligns with the Trump administration’s push for the Department of Government Efficiency (DOGE) to crack down on waste, fraud, and abuse in the federal government.
In a press release, the Labor Department revealed that $1.4 billion of unspent COVID funding will be returned to taxpayers through the U.S. Department of Treasury’s General Fund. Additionally, efforts are underway to recover the remaining $2.9 billion. The press release highlighted that the $4.3 billion was initially allocated to states for temporary unemployment insurance during the pandemic. However, a 2023 audit conducted by the department’s Office of Inspector General uncovered that several states continued spending millions of dollars despite no longer meeting the necessary requirements.
The funding stemmed from the Coronavirus Aid, Relief, and Economic Security Act passed in March 2020, with the intention of providing expanded unemployment insurance for Americans unable to work during the pandemic. Although the program was closed in 2021, the audit identified that four states accessed the funding despite not meeting the program requirements, resulting in over $100 million in spending.
Secretary Chavez-DeRemer emphasized the importance of not letting leftover COVID unemployment funds go to waste, stating that it is a misuse of hard-earned tax dollars. She reiterated her commitment to safeguarding American taxpayers’ money and rooting out waste to prioritize American workers.
Deputy Secretary of Labor Keith Sonderling echoed these sentiments, calling the unchecked billions of dollars in the defunct program unacceptable. He underscored the department’s dedication to clawing back unused funds and continuing efforts to eliminate waste, fraud, and abuse.
This announcement follows Secretary Chavez-DeRemer’s directive in her first memo to comply with Trump’s executive orders and collaborate with DOGE to tackle inefficiencies in government spending. She emphasized the importance of aligning with the administration’s priorities, practicing fiscal responsibility, reducing unnecessary spending, and optimizing resources to ensure taxpayer dollars are utilized effectively.
In conclusion, the return of over $1 billion in unused COVID-era funding marks a significant step towards fiscal responsibility and accountability in government spending. Secretary Chavez-DeRemer’s commitment to eliminating waste and prioritizing American workers sets a positive tone for the Department of Labor under the Trump administration’s leadership.
