The White House is terminating federal grants intended to update states’ unemployment systems, claiming they have been “squandered” on “bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need,” reports Axios.

“We’re committed to ensuring our unemployment system is free from fraud and abuse, and we look forward to partnering with state workforce agencies on real solutions that meet the needs of American workers,” the Labor Department told Axios in an email.

Under the Biden administration in 2023, the Labor Department awarded $400 million to help states make their unemployment systems more accessible and reliable, including using “cloud technology to make UI systems more flexible and more user friendly.”

Read more at Newsmax© 2025 Newsmax. All rights reserved.