U.S. Department of Labor Secretary Lori Chavez-DeRemer has announced the return of over $4.4 billion in unspent and unusable COVID-era funding to the U.S. Department of Treasury’s General Fund. This action completes a reconciliation process initiated in March, which had already seen $1.4 billion returned to taxpayers.
The funds were initially allocated for states to use as temporary unemployment insurance during the pandemic. An audit conducted by the Department's Office of Inspector General in 2023 recommended that its Employment and Training Administration devise a plan to reconcile and return these unused funds.
"The pandemic is long behind us – it’s the federal government’s responsibility to return unusable COVID-era funding to the American people and ensure these dollars are being utilized effectively," said Secretary Chavez-DeRemer. "Under President Trump’s leadership, the Department of Labor is delivering on its commitment to root out waste, fraud, and abuse, and we will continue to be responsible stewards of taxpayers’ hard-earned dollars."
The funding was originally part of the Coronavirus Aid, Relief, and Economic Security Act passed in March 2020. This act established a program called Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week, aimed at providing expanded unemployment insurance during the pandemic.
