The White House is terminating federal grants intended to update states' unemployment systems, claiming they have been "squandered" on "bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need," reports Axios.
"We're committed to ensuring our unemployment system is free from fraud and abuse, and we look forward to partnering with state workforce agencies on real solutions that meet the needs of American workers," the Labor Department told Axios in an email.
Under the Biden administration in 2023, the Labor Department awarded $400 million to help states make their unemployment systems more accessible and reliable, including using "cloud technology to make UI systems more flexible and more user friendly."
Andrew Stettner, who led the modernization efforts at the time, told Axios the IT funds have been spent slowly in some states.
"When I left in December, states had spent about $100 million of the $219 million specifically for equity but only $2 million of the $204 million for IT," he said.
"States were in the middle of all the planning and procurement. Now, they're really holding the bag for finishing."
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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