Keith Sonderling, acting head of the agency, threatens to withhold administrative funds from states for first time in history

Keith Sonderling sent letters to 53 states and US territories demanding action to “combat waste, fraud, and abuse” within the unemployment insurance program, threatening to withhold administrative funds from states for the first time history.

“We are officially putting governors on notice,” said the acting US secretary of labor. “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.”