The Department of Labor (DOL), in collaboration with the White House Task Force to Eliminate Fraud, has deployed a strike force to New York to recover hundreds of millions in unemployment fraud payments."New York has exhibited fraud and improper payment rates on a scale we’ve never seen before—draining nearly $2 million a day from hardworking American taxpayers," DOL Inspector General Anthony D’Esposito told Fox News Digital."While the state is cooperating with our review, these numbers are simply unacceptable.
Our strike team will ensure the system is operating exactly as intended with no underlying issues."New York contributed to $750 million in improper unemployment insurance claims, and has accounted for $507 million of those claims paid out in 2025, according to numbers reported to the federal government by the state.Now, the Trump administration wants to claw back those funds it says were obtained through fraudulent means in the Democrat-led state.Rep.Anthony D'Esposito, R-N.Y., speaks during a news conference outside the U.S.
Capitol in Washington, D.C., to announce the bipartisan Aviation Safety Caucus and the Safer Skies Act.(Bonnie Cash/Getty Images)STOLEN IDS SOLD FOR ‘HAPPY MEAL’ PRICES FUEL BILLIONS IN US BENEFIT FRAUDNew York has the highest unemployment insurance fraud rate in the country at 15%, according to the DOL.
The federal government says the state also has the highest improper payment rate at 23%.Of the $507 million in overpayments, New York has only managed to recover 25% of the total, which is well below the national actual loss prevention average of 69%.A spokesperson for New York Gov.Kathy Hochul's office told Fox News Digital that she is implementing policies to prevent fraud, which has been a longstanding priority of President Donald Trump's second term."Governor Hochul and the State Department of Labor take fraud and abuse very seriously.
That’s why the Governor has led the way in implementing several changes since the p...