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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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FEDERAL PROSECUTOR CALLS NEWSOM ‘KING OF FRAUD’ AS TRUMP LAUNCHES CALIFORNIA CORRUPTION PROBE

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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WALZ’S MINNESOTA MESS COULD SPARK THE TOUGHEST FRAUD REFORMS IN DECADES

“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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EXCLUSIVE: Senate bill targets Minnesota-style ‘runaway fraud’ to force scammers to repay taxpayers

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Utah

Rock Canyon fire doubles in size overnight near Arizona-Utah border

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Rock Canyon fire doubles in size overnight near Arizona-Utah border


FLAGSTAFF, AZ (AZFamily) — The Rock Canyon Fire, burning in northern Arizona near the border with Utah, doubled in size overnight to 4,512 acres and was 5% contained.

The fire has caused firefighters to evacuate hikers and campers in the area, and some roads in the Kaibab National Forest are closed.

People in Jacob Lake — less than 20 miles from the Rock Canyon Fire — say the new fire is stirring up anxiety after last year’s devastating fire season. They say they’re confident in firefighters, but after the trauma, they’re still holding their breath.

Memories of last year’s fires

For over 100 years, Jacob Lake Inn has been serving cookies to guests who want to visit the North Rim of the Grand Canyon or explore the Kaibab National Forest. Melinda Rich Marshall’s family has owned the inn since 1923.

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Last year, they were evacuated during the White Sage Fire that burned close to 60,000 acres, and then the Dragon Bravo Fire, which destroyed nearly 150,000 acres, shut down the North Rim.

Now the Rock Canyon Fire has already burned thousands of acres north of the inn.

“I mean, honestly, our reaction was not again,” Rich Marshall said. “I mean, that’s really what it was.”

Rich Marshall said last year was hard enough, so once they heard about this new fire, it brought back bad memories.

“I’d say we have a little PTSD from it, seeing smoke and smelling smoke and all those things,” she said.

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Fire burning in old burn scar

The Rock Canyon Fire was sparked over the weekend by a lightning strike.

Parts of it are burning in the White Sage burn scar. Bureau of Land Management spokesperson Dolores Garcia said old burn scars will usually slow down a new fire, but this time it’s actually fueling the flames.

“In some of those areas, we’re seeing quite a bit of fuels,” Garcia said. “We’re not seeing that the burn scar is helping much, especially with the winds as strong as they’ve been in some days and as dry as it’s been, those fuels are just tender and cured and really flammable.”

She said firefighters are attacking it from the ground and the air, but the high winds are limiting their ability to make water drops.

Hikers and campers were evacuated from the area. Garcia said she knows how stressful this must be to the surrounding communities after last year’s fires.

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“We still understand that, it’s still a very fresh wound to many of the people who live up there, who’ve recreated up there for years,” she said. “That’s definitely at the forefront of our minds.”

Rich Marshall said while it’s scary, they have full trust in the firefighters.

“We’re really just grateful to see them and know the work that they are doing,” she said.

Rich Marshall said this is usually their peak season, but they’ve seen a bit of a slowdown even after the North rim reopened. She said people can support them by staying there or even just stopping in and getting some of their famous cookies.

See a spelling or grammatical error in our story? Please click here to report it.

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Copyright 2026 KTVK/KPHO. All rights reserved.



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Washington

Washington State University Vancouver faculty, staff anxiously await details of 15% budget cuts

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Washington State University Vancouver faculty, staff anxiously await details of 15% budget cuts


Washington State University Vancouver faculty, staff anxiously await details of 15% budget cuts – OPB

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Wyoming

250 Portraits self-portrait exhibition now on display throughout downtown Jackson

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250 Portraits self-portrait exhibition now on display throughout downtown Jackson


JACKSON, Wyo. – Jackson Hole Public Art (JHPA) is proud to announce the
public installation of 250 Portraits, a community art project featuring self-portraits created and submitted by Wyoming residents from across the state. Launched in honor of the nation’s 250th anniversary, the project invited Wyomingites of all ages and backgrounds to submit portraits of themselves or other Wyoming residents, resulting in a vibrant and deeply personal collection of artwork.

Portraits were submitted by artists ranging in age from 5 to over 80, representing residents from 16 of Wyoming’s 23 counties. Participants included individuals, families, school groups, and educators who worked with their students to take part. The result is a wide-ranging snapshot of the people who call Wyoming home, from young children just beginning to express themselves through art to lifelong residents reflecting on decades of experience and identity.

The portraits are now on display in five large-scale grid installations located throughout downtown Jackson. They can be found at the Center for the Arts, JH Book Trader, the Antler Inn, the alley at Pinky G’s, and the Jackson Hole Elks Lodge. The exhibition will remain on view throughout the summer, giving locals and visitors alike the opportunity to take in the full collection at their own pace.

The exhibit, 250 Portraits, was designed to highlight both individual identity and collective belonging, weaving together faces from communities large and small into a single, statewide visual portrait of Wyoming’s people. By placing the work in accessible, high-traffic locations in downtown Jackson, JHPA hopes to spark conversation among residents and visitors about what it means to be part of a community that spans such a wide and varied landscape.

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A self-guided walking map is available to help visitors navigate between the five sites and experience other public art projects throughout Jackson. For more information and to access the 2026 Public Art Map, visit https://www.jhpublicart.org/art/2026map.

Pair your portrait with an audio story! Please consider adding your voice to another state-wide project celebrating the stories of everyday Wyomingites: Re-Storying the West.



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