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U.S. Labor Department Returns Over $1 Billion to Taxpayers Amid DOGE Initiative

The U.S. Department of Labor announced the return of over $1 billion in unused COVID-era funding to taxpayers, aligning with the Trump administration’s Department of Government Efficiency (DOGE) initiative.

In a significant move towards fiscal responsibility, U.S. Department of Labor Secretary Lori Chavez-DeRemer announced that her department will return over $1 billion in unused funds from the Coronavirus Aid, Relief, and Economic Security Act back to the U.S. Treasury’s General Fund. This action is part of the broader push by the Trump administration’s Department of Government Efficiency (DOGE) to eliminate waste, fraud, and abuse within the federal government.

The funds, originally allocated for temporary unemployment insurance during the COVID-19 pandemic, were found to be unspent following a 2023 audit by the department’s Office of Inspector General. The audit revealed that several states had continued to access and spend millions of dollars despite no longer meeting the necessary program requirements. The total amount of unspent funds identified stands at approximately $4.3 billion, with efforts underway to recover the remaining $2.9 billion.

Secretary Chavez-DeRemer emphasized the importance of returning these funds to taxpayers, stating, “There’s no reason leftover COVID unemployment funds should still be collecting dust. I promised to look out for Americans’ hard-earned tax dollars, and we are delivering at the Department of Labor.” She further highlighted the department’s commitment to rooting out waste and ensuring that American workers are prioritized.

Deputy Secretary of Labor Keith Sonderling echoed these sentiments, describing the situation as “unacceptable” and applauding the efforts to reclaim these funds as a “huge win for the American taxpayer.” The department’s actions align with President Trump’s executive orders aimed at promoting job creation, enhancing workforce development, and ensuring fiscal responsibility.

This announcement follows Secretary Chavez-DeRemer’s first memo to the department, in which she outlined her plans to comply with Trump’s policies and work closely with DOGE to eliminate inefficiencies. She called on staff to identify innovative solutions to achieve these goals, emphasizing the need for the Labor Department to focus on practicing fiscal responsibility and optimizing resources.

Vance, VP
Rubio, SecState
Hegseth, SecDef
Bondi, AG
RFK Jr., SecHHS
Patel, FBI
Musk, DOGE