White House terminates state unemployment system grants

Wednesday, May 28, 2025, 11:22 am

The White House is axing approximately $400 million in federal grants aimed at modernizing state unemployment systems. Critics warn that this move leaves states scrambling with outdated systems, while supporters call it a necessary correction in spending priorities.

axios.com / White House cuts $400 million in aid for state unemployment systems

The White House is terminating $400 million in funds for states meant to modernize their unemployment insurance systems.Why it matters: These systems fell apart when unemployment soared in the pandemic, leading to rampant fraud and delays for beneficiaries.Without updates, similar problems could be…

alternet.org / States left 'holding the bag' as White House terminates grants

Axios reports the White House is terminating federal grants intended to update states’ aging unemployment systems, claiming the money was being spent on equity projects.The Trump Labor Department told Axios the grants were "squandered" on "bureaucratic and wasteful projects that focused on…

permalink / 2 stories from sources in 3 days ago #democrats #biden #fiscal-policy #legal

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White House terminates state unemployment system grants

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