Trump’s Labor Secretary Delivers Major Win for Taxpayers, Returning $1 Billion in Unspent COVID Funds
In a move that marks a strong commitment to fiscal responsibility and efficiency, U.S. Secretary of Labor Lori Chavez-DeRemer revealed that the Department of Labor will be returning over $1 billion in unused COVID-era funding to the U.S. Treasury.
This announcement, made on Monday, comes amid a broader push to eliminate waste, fraud and abuse in government spending—an effort strongly supported by the Trump administration’s emphasis on government efficiency.
In a press release, the Labor Department said $1.4 billion of unspent COVID funding will be "returned to taxpayers through the U.S. Department of Treasury’s General Fund" and added that "action" is "being taken to recover the remaining $2.9 billion." https://t.co/hsYwtyl9WX
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The unspent COVID funds, initially allocated under the 2020 CARES Act to provide expanded unemployment insurance during the pandemic, have been a focal point of scrutiny, Fox News reports. According to the Department of Labor, approximately $1.4 billion in unspent funds will be refunded to taxpayers through the U.S. Treasury’s General Fund.
This decision comes after a 2023 audit by the department’s Office of Inspector General uncovered troubling findings. The audit revealed that several states continued accessing COVID unemployment funds despite no longer meeting the program’s eligibility requirements.
This improper spending totaled millions of dollars and one audit found over $100 million of such funds had been misspent by four states alone.
Chavez-DeRemer made it clear that this type of fiscal irresponsibility would not be tolerated under her leadership.
“There’s no reason leftover COVID unemployment funds should still be collecting dust,” she told Fox News in a statement, adding that the department was committed to rooting out waste and ensuring that taxpayer dollars are used effectively.
She went on to affirm her ongoing mission to protect Americans’ hard-earned tax dollars and restore accountability in government programs.
The $1.4 billion being returned represents just a portion of the total unspent funds. The Department of Labor is still working to recover an additional $2.9 billion, which was meant for the unemployment insurance program but had been used improperly by some states after the program had closed in 2021.
This effort is part of a broader initiative by Chavez-DeRemer to make government operations more efficient and to ensure that federal agencies adhere to fiscal responsibility.
Deputy Secretary of Labor Keith Sonderling also addressed the issue, calling it “unacceptable” that billions of taxpayer dollars went unchecked in a program that was intended for a specific time-sensitive purpose.
“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 said, highlighting the significance of these efforts.
This announcement follows Chavez-DeRemer’s first memo to department employees, where she expressed her commitment to aligning the Department of Labor’s priorities with the goals set forth by the Trump administration. These priorities include focusing on job creation, workforce development and ensuring safe working conditions, wages and pensions, per the outlet.
Chavez-DeRemer emphasized that fiscal responsibility was key and that the department’s resources should be utilized effectively to support Americans.
Chavez-DeRemer’s approach has been well-received by those looking for strong leadership and accountability in the federal government. Under her leadership, the Department of Labor is not only focusing on improving job outcomes but is also committed to ensuring that every dollar spent is necessary and justifiable.
She has challenged her team to seek innovative solutions for eliminating waste and improving the efficiency of government operations.
“We must focus on practicing fiscal responsibility, reducing unnecessary spending, and optimizing our resources to ensure that taxpayer dollars are utilized effectively,” she concluded.
The Labor Department’s swift action to return unused COVID funds is a clear indication that Chavez-DeRemer is determined to follow through on her promise to make government more efficient, transparent and accountable to the American people.
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