WASHINGTON — The Trump administration signaled to states this month that it was eyeing changes to the unemployment insurance system, which pays weekly benefits to out-of-work Americans. The move has left some local leaders and labor experts cautious about the future of the program.
While the White House has said little publicly about the full scope of its ambitions, it has suggested its primary focus is on fighting fraud. That coincides with President Donald Trump’s broad, new crackdown against the theft of taxpayer dollars across government, though his actions so far have predominately punished states led by Democrats.
Earlier this month, the Trump administration invited state labor leaders to Washington for a two-day meeting in March “aimed at building momentum for modernizing how we address unemployment,” according to a copy of the letter viewed by The New York Times. The invitation sought states’ help to “implement a new vision” and “reimagine” the program but offered few other details.
The Labor Department has simultaneously ramped up its oversight of unemployment assistance, a federal system that is administered by the states. Last week, the agency singled out California for heightened scrutiny, saying it would dispatch a “strike team” to help uncover any fraud there.
A White House official, who spoke on the condition of anonymity to discuss plans that have not been made public, said the focus of the meeting in March was primarily on improving the collection of economic data but did not further specify the government’s goals. The official said the administration was also considering new ways to verify the identities of people who apply for weekly aid, which would help the Labor Department spot and prevent benefit theft.