The Trump Labor Department secured eye-opening payments to return to taxpayers.
The U.S. Department of Labor, Lori Chavez-Deremer, announced Monday that her department will return more than $1 billion in unused Covid-Era funds to taxpayers amid the Trump administration’s push to cut waste, fraud and abuse in the federal government.
The Labor Department said in a press release that it would “return taxpayers through the U.S. Treasury’s General Foundation” to $1.4 billion in unresolved co-funds”, adding that the “action” is to “take action to recover the remaining $2.9 billion.”
“About the pandemic, about $4.3 billion was spent on temporary unemployment insurance,” the press release said. “In contrast, while the necessary requirements are no longer met, several states are still spending millions of dollars, which is Discovered in 2023 The department inspector general is presided over. ”
The department explained in a press release that the funding stems from the Coronavirus Aid, Relief and Economic Security Act of March 2020, a program designed to provide expanded unemployment insurance for Americans who cannot work during the pandemic.
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The Labor Department is returning more than $1 billion to taxpayers. (Gate image)
The department said the program was closed in 2021, but the 2023 audit “found that four states were allowed to obtain funds, even though they did not meet the program requirements, and that total spending exceeded $100 million.”
“There is no reason the remaining Covid unemployment funds should collect dust,” Dillermer told Fox News Digital in a statement. “I promise to pay attention to Americans’ hard-earned taxes that we are delivering in the Labor Department.”
“Any unemployment fund that is still in the bloody era revolves around unemployment funds is an abuse of Americans' hard-earned taxes,” Chavez-Deremer said in a press release.
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President Donald Trump's draft pick Lori Chavez-Deremer testified at the Senate Health, Education, Labor and Pension Committee confirmation hearing at the Dixon Senate Office Building on Capitol Hill on February 19, 2025. (Photo by Chip Somodevilla/Getty Images)
“In the plan that ended a few years ago, billions of dollars were unrestricted to be selected,” Deputy Labor Secretary Keith Sonderling said in a statement.
“In a huge victory for U.S. taxpayers, we withdraw these unused funds and will continue to work to eliminate waste, fraud and abuse.”
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The news comes after Demer said in the first memorandum to take over the department last month that she plans to comply with Trump’s execution orders and work with Doge to eliminate waste, fraud and abuse.
“Under President Trump’s leadership, our focus remains on promoting job creation, enhancing workforce development, and ensuring safe working conditions, wages and pensions so that every American has the opportunity to succeed,” Delemer told employees in the memo. “I challenge each of you to actively engage with your team to identify innovative solutions that can help us achieve our goals.”
Chavez-Deremer said the Labor Department must align with the Trump administration’s priorities and “must focus on practicing fiscal responsibility, reducing unnecessary spending, and optimizing our resources to ensure effective use of taxpayer money.”
Brooke Singman of Fox News Digital contributes to this report
