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Labor Department deploys ‘strike team’ to California over $21B unemployment debt, fraud concerns

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Labor Department deploys ‘strike team’ to California over B unemployment debt, fraud concerns

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The Labor Department deployed a “strike team” to California to address federal findings of improper payments and alleged fraud within the state’s unemployment insurance (UI) program.

California has been found to have a depleted UI trust fund, along with $21 billion in borrowed federal funds to keep the system running, which federal officials say has led state employers to pay higher UI taxes to repay the debt.

In a statement, the department cited an 83-page California State Auditor report that determined the state’s UI system is high-risk in part due to “inadequate fraud prevention and claimant service [in its employment development department (EDD)], as well as a high rate of overturned eligibility decisions in its Unemployment Insurance Program.”

California Gov. Gavin Newsom  (Tayfun Coskun/Getty Images)

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“Financial issues and potential fraud in California’s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs. This ends now,” Labor Secretary Lori Chavez-DeRemer said.

“Immediately, we are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers. I look forward to restoring the California UI program’s integrity and financial health.”

Chavez-DeRemer added that the “strike team” will include Labor Department specialists from both its national and regional offices.

The secretary also wrote a letter to the EDD, citing increasing improper payment rates, insufficient timeliness, data accuracy and quality concerns and questions about participants’ eligibility and the use of taxpayer funds.

California received about $290 billion in COVID relief, part of which helped what the California Post described as “rapidly implementing expanded unemployment benefits.”

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Department of Labor Secretary Lori Chavez-DeRemer is cracking down on reported H-1B abuse. (Chip Somodevilla/Getty Images)

At least one California UI steward was convicted of using her position to file nearly $860,000 in fraudulent UI claims, while some civilians were convicted of creating nonexistent businesses to claim UI.

Before the strike team’s deployment, DOL Inspector General Anthony D’Esposito said he found nearly $1 billion in taxpayer funds “at risk” nationwide due to COVID-related UI fraud.

D’Esposito, a former NYPD officer and ex-congressman from Long Island, said in a statement that an analysis of 6.5 million prepaid debit cards used for COVID UI benefits still had $720 million loaded on them.

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“My office has warned that, absent swift action, U.S. taxpayers risk losing nearly a billion dollars in fraudulently obtained benefits,” D’Esposito said in a statement.

“This is taxpayer money, and it demands immediate attention.”

D’Esposito said fraud is not a victimless crime and that every misspent dollar is one that an actual needy family could use.

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Quality Learning Center in Minnesota was found to be at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste/Fox News)

“When we root out fraud, we protect taxpayers and lower the real cost of living,” he said.

Fox News Digital reached out to Newsom and the state Senate’s top Republican for comment.

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Newsom staffer who told California reporter to ‘f— off’ is raking in massive taxpayer-funded salary

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Newsom staffer who told California reporter to ‘f— off’ is raking in massive taxpayer-funded salary

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Isaac “Izzy” Gardon, the communications director for Gov. Gavin Newsom who made headlines earlier this week for telling a national reporter to “f— off” after she pressed him on the California governor’s reported dyslexia diagnosis, is raking in a hefty six-figure salary, a Fox News Digital review found.

While Newsom’s dyslexia diagnosis has been public for decades, interest in the matter was amplified amid the California governor’s book tour he launched this month. During one of his first stops on the tour, in Atlanta, Newsom was asked about his dyslexia in conversation with Democratic Mayor of Atlanta Andre Dickens, who asked what he hoped readers would take away from the discussion about his diagnosis in the governor’s new book. 

“I’m like you. I’m no better than you. You know, I’m a 960 SAT guy,” Newsom said in response, garnering criticism online that he was pandering to the Black community.   

Amid the rebukes from MAGA world and Republicans, Real Clear Politics (RCP) national correspondent Susan Crabtree reached out to Gardon for verification on his childhood disability diagnosis. In response, Gardon told her to “respectfully, f— off.” 

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Democratic Party Governor of California, Gavin Newsom, holds up his new memoir during a book tour event in South Carolina earlier this month. (Peter Zay/Anadolu via Getty Images)

The testy response led to further criticism targeting Newsom’s office and Gardon, including from RCP’s Carl Cannon, who questioned why people who are offended so deeply by Trump “consistently imitate his worst behavior.” Newsom’s press office has been known to meet the White House’s pointed and often hostile social media posts targeting Democrats, which frequently include AI generated images, with similarly hostile social media posts targeting Trump and Republicans. 

When reached for comment on this story, Gardon told Fox News Digital that “Susan is not a journalist.”  

“She’s a MAGA blogger who writes about conspiracy theories,” Gardon added. 

Transparent California, a statewide public pay and pension database, revealed that Gardon is being paid quite handsomely to be one of Newsom’s most ardent defenders online. Gardon has risen in stature from an administrative assistant making around $30,000 per year in 2019, to earning $212,154.02 in 2024 as a senior assistant and communications director in Newsom’s office.

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California Gov. Gavin Newsom (D) seen laughing at an event earlier this month hosted by the South Carolina Democratic Party.  (Sean Rayford/Getty Images)

Gardon’s “regular pay” in 2024 was $152,091.05. That was also supplemented by nearly $57,000 in benefits and another $3,141.16 in “other pay,” according to the database, leading to a combined annual payment of $212,154.02. However, his current pay, which does not appear to be publicly available online, is likely to be higher.

Following news of Gardon’s response to Crabtree’s follow-up, a senior reporter for the California Post also shared an email from Gardon in response to one of his media inquiries. 

In Gardon’s response, he referred to the New York Post as the “New York Comic Book.” Then, when Koehn followed up, indicating the San Francisco Chronicle was covering the same story, Gardon replied, “I’d put that outlet in the same bucket,” according to Koehn, who posted screenshots of the pair’s back-and-forth on X.

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A man is seen holding a copy of California Gov. Gavin Newsom’s new memoir titled “Young Man In A Hurry.” (Sean Rayford/Getty Images)

While some top Newsom staffers have praised Gardon’s style, including his boss and senior advisor of communications, Bob Salladay, who told Politico that “Izzy’s creativity and imagination is part of what the governor is doing.” Some Democratic operatives have vocally been critical about his communication style, including Garry Tan, a prolific Democratic donor and CEO of Y Combinator

“Most unprofessional person to ever work in politics,” Tan posted on X. “Izzy Gardon brings shame to the Newsom campaign.”

In addition to the email, Gardon came under fire earlier this month when he referred to rapper and MAGA activist Nicki Minaj as a “stupid hoe” on X. He defended his social media post by pointing to her 2012 song called, “Stupid Hoe.”

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San Francisco, CA

Giants scratch Rafael Devers from lineup with tight hamstring

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Giants scratch Rafael Devers from lineup with tight hamstring


Friday, February 27, 2026 9:48PM

SCOTTSDALE, Ariz. — The San Francisco Giants scratched slugger Rafael Devers from the starting lineup because of a tight hamstring, keeping him out of a spring training game against the Los Angeles Dodgers on Friday.

The three-time All-Star and 2018 World Series champion is starting his first full season with the Giants after they acquired him in a trade with the Boston Red Sox last year.

Devers hit 35 home runs and had 109 RBIs last season, playing 90 games with San Francisco and 73 in Boston. He signed a $313.5 million, 10-year contract in 2023 with the Red Sox.

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He was 20 when he made his major league debut in Boston nine years ago, and he helped them win the World Series the following year.

Devers, who has 235 career homers and 747 RBIs, led Boston in RBIs for five straight seasons and has finished in the top 20 in voting for AL MVP five times.

Copyright © 2026 ESPN Internet Ventures. All rights reserved.



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Denver, CO

University of Denver to close Ricks Center for Gifted Children next year

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University of Denver to close Ricks Center for Gifted Children next year


The University of Denver will close the Ricks Center for Gifted Children next year as enrollment has fallen in recent years, the college announced this week.

The Ricks Center, which serves gifted children as young as 3 years old, will operate for the 2026-27 academic year before closing, according to a letter DU sent parents on Wednesday.

“The University of Denver has made the difficult decision to close the Ricks Center for Gifted Children at the conclusion of the 2026–2027 academic year,” spokesman Jon Stone said in a statement. “This decision reflects long-term operational and financial considerations and is not a reflection of the school’s quality, leadership, or community.”

The center, which is located on DU’s campus, was started in 1984 as the University Center for Gifted Young Children. The program offers classes to students in preschool through eighth grade, according to the website.

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The program, along with other public K-12 schools in the state, has experienced declining enrollment in recent years. The center enrolled 142 students for the 2025-26 academic year, which is down from 200 pupils four years ago.



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