U.S. Labor Secretary: Trump Admin Will Return $1.4B In Unused COVID-Era Funding To Taxpayers

(L) Lori Chavez-DeRemer testifies during her confirmation hearing. (Photo by Chip Somodevilla/Getty Images) / (R-Top) White House Senior Advisor to the President and Tesla and SpaceX CEO Elon Musk. (Photo by Andrew Harnik/Getty Images) / (R-Bottom) Dr. Anthony Fauci, the former head of the National Institute of Allergy and Infectious Diseases.

As the Trump administration pushes the Department of Government Efficiency (DOGE) to reduce waste, fraud, and abuse in the federal government, U.S. Labor Secretary Lori Chavez-DeRemer said this week that the agency will return more than $1 billion in unused COVID-era funds to U.S. taxpayers.

The Labor Department stated in a news release that it is currently taking “action” in order “to recover the remaining $2.9 billion,” but that $1.4 billion of unspent COVID funding will soon be “returned to taxpayers through the U.S. Department of Treasury’s General Fund.” However, it did not specify a date for either.

“The roughly $4.3 billion was intended for states to use for temporary unemployment insurance during the pandemic,” the press release states. “Instead, several states continued spending millions of dollars despite no longer meeting necessary requirements, which was uncovered in a 2023 audit conducted by the department’s Office of Inspector General.”

In the press release, Chavez-DeRemer clarified that the program is especially designed to offer expanded unemployment insurance to Americans who were unable to work during the pandemic and that the financing came from the Coronavirus Aid, Relief, and Economic Security Act in March 2020.

The 2023 audit “found four states were allowed to access the funding ‘despite not meeting program requirements,’ totaling over $100 million in spending,” according to the department, which stated that the program was discontinued in 2021.

“There’s no reason leftover COVID unemployment funds should still be collecting dust,” DeRemer told Fox News. “I promised to look out for Americans’ hard-earned tax dollars, and we are delivering at the Department of Labor.”

“Any money still sitting around for pandemic-era unemployment funds is a clear misuse of Americans’ hard-earned tax dollars,” Chavez-DeRemer said in the press release, noting that they are “rooting out waste to ensure American Workers always come First.”

Deputy Labor Secretary Keith Sonderling made a statement as well.

“Billions of dollars went unchecked in a program that ended several years ago,” Sonderling stated. “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.”

The announcement follows DeRemer’s declaration in her first memo to the department upon her appointment last month, where she expressed that she intends to collaborate with DOGE to eradicate waste, fraud, and overspending — while adhering to President Trump’s executive orders.

“Under the leadership of President Trump, our focus remains on promoting job creation, enhancing workforce development, and ensuring safe working conditions, wages, and pensions so that every American has the opportunity to succeed,” DeRemer said to employees. “I challenge each of you to actively engage with your teams to identify innovative solutions that can help us achieve our goals.” 

According to Chavez-DeRemer, the Labor Department “must focus on practicing fiscal responsibility, reducing unnecessary spending, and optimizing our resources to ensure that taxpayer dollars are utilized effectively” and must be in line with the Trump administration’s policies.

Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts