RIGHT SPEAK: Biden’s Labor Secretary Could Be Forcing Taxpayers to Foot $32B in Unemployment Fraud She Caused in California; GOP Senators Accuse Biden’s Labor Secretary of Potentially Forcing Taxpayers to Cover $32B in California Unemployment Fraud, and other C-Virus related stories

Biden’s labor secretary could be forcing taxpayers to foot $32B in unemployment fraud she caused in California: GOP senators

President Biden’s labor head could be forcing US taxpayers to foot the bill for roughly $32 billion in unemployment fraud she caused when serving during the COVID-19 pandemic as California’s top labor official, Republican senators wrote in a Wednesday letter.

Sens. Bill Cassidy and Mike Crapo expressed concerns in a letter to Labor Secretary Julie Su about December Labor Department guidelines that may “allow California to shift the consequences of a still unknown amount of federal funds that was lost” by its Employment Development Department (EDD) during her tenure.

The $32.6 billion in COVID relief to fraudsters amounts to as much as one third of the total erroneous unemployment insurance payments, according to a Government Accountability Office report last September.

That’s more than double the annual budget of the US Department of Labor, the senators noted.

A California State Controller report also found that the state “had inadequate control over its financial reporting for federally funded unemployment insurance benefits,” making it difficult to determine the extent of the fraud.

Cassidy (R-La.) and Crapo (R-Idaho) said in May 1 testimony before the House Education and Workforce Committee that Su claimed states could only “waive non-fraudulent overpayments.”

“While serving as Secretary for the California Labor & Workforce Development Agency (LWDA), you waived basic fact-checking and fraud prevention requirements for federal pandemic-related unemployment insurance (UI) payments,” the senators wrote. --->READ MORE HERE

Kimberly P. Mitchell / USA TODAY NETWORK

GOP Senators Accuse Biden’s Labor Secretary of Potentially Forcing Taxpayers to Cover $32B in California Unemployment Fraud:

Republican Senators Bill Cassidy and Mike Crapo have raised significant concerns regarding the potential impact on U.S. taxpayers stemming from alleged unemployment fraud during the COVID-19 pandemic, particularly under the leadership of Labor Secretary Julie Su. In a letter addressed directly to Secretary Su, these senators highlighted their apprehensions regarding the December guidelines issued by the Department of Labor. They argue that these guidelines could potentially allow the state of California to shift financial repercussions for significant unemployment fraud onto federal funds, potentially leaving taxpayers to foot a substantial bill.

The senators drew attention to a report from the Government Accountability Office released in September, which estimated that fraudulent COVID-19 relief payments amounted to an astounding $32.6 billion. This figure represents a considerable portion of the total erroneous unemployment insurance payments disbursed during the pandemic. To put this into perspective, the sum exceeds the annual budget of the U.S. Department of Labor, indicating the magnitude of the alleged fraud and its potential implications.

Furthermore, the senators referenced a report from the California State Controller, which indicated that the state had inadequate control over financial reporting for federally funded unemployment insurance benefits. This lack of oversight has made it challenging to accurately quantify the extent of the fraud, further complicating efforts to address the issue comprehensively.

Of particular concern to the senators are the guidelines that enable states to determine how to address funds lost to fraud, potentially allowing for the partial or complete forgiveness of these losses. They argue that such leniency could encourage lax oversight and accountability, ultimately placing an undue burden on taxpayers. --->READ MORE HERE