Labor Department cuts $400 million from unemployment benefits system ‘riddled with waste’

Published May 28, 2025 4:24pm ET



The Department of Labor is cutting roughly $400 million in grants meant to provide states with funding to modernize their unemployment insurance systems.

The department confirmed the cuts in a statement to the Washington Examiner on Wednesday. A spokesperson said hundreds of millions in federal funding sent to support the unemployment benefits system had been abused and spent on “bureaucratic and wasteful” equity projects. 

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