Officials from the Trump administration have vowed to recover tax funds misappropriated by blue states after the Department of Government Efficiency (DOGE) uncovered that these states had received nearly $400 million in fraudulent unemployment benefits. Representatives from the Department of Labor (DOL) and the White House issued strong statements, placing the three Democratic-controlled states on alert.

For context, DOGE was created under one of Trump’s initial executive orders and is tasked with combating fraud, waste, and corruption within the federal government. Within a few months, the agency, led by tech innovator Elon Musk, has revealed extensive fraud networks and saved taxpayers hundreds of billions of dollars.

In any event, Labor Department Secretary Lori Chavez-DeRemer highlighted the extent of the corruption during a cabinet meeting on April 14, 2025. She stated, “This is yet another remarkable finding by the DOGE team, uncovering nearly $400 million in fraudulent unemployment payments. The Labor Department is dedicated to reclaiming Americans’ misappropriated tax dollars. We will apprehend these criminals and continue our efforts to eliminate severe fraud.”