Trump Administration Targets States for Unemployment Fraud After $1.2 Billion Paid to Children Under 14

Wednesday, 17 June 2026 06:45 PM EDT
Acting Labor Secretary Keith Sonderling announced today that his department is intensifying efforts to address fraudulent unemployment insurance claims by states and territories.

Sonderling stated in a recent statement that the Department of Labor will no longer tolerate cases where children as young as three or five are receiving unemployment benefits. He emphasized that states must verify recipients’ eligibility before approving any unemployment payments.

The acting secretary cited statistics showing $135 billion in fraudulent unemployment insurance claims across the country since the pandemic began. “So just to show you how egregious it got,” Sonderling said, “$1.2 billion went to children under 14.”

He further noted that hundreds of millions of dollars were distributed to federal prisoners and that 25,000 individuals over the age of 115 received benefits — a figure he described as nearly impossible given the rarity of such longevity. “There’s only two or three people, maybe, 114 years old, if they’re lucky,” Sonderling remarked.

Sonderling condemned the widespread fraud, stating that states had been failing to implement verification systems. “It was just widespread fraud. The states weren’t checking. There was no verification system,” he said.

The administration’s notice sent to governors on Wednesday requires all states and territories to verify unemployment claimants’ eligibility before processing benefits.

In a department release, Sonderling wrote: “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. 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.”