Biden’s labor chief nominee Julie Su haunted by $30 billion COVID-era fraud payments
because of her tenure overseeing a California unemployment agency that paid out billions in fraudulent benefits at the height of the coronavirus pandemic., despite having voted to confirm her as undersecretary of labor in 2021. The uncertainty comes as business groups and Republicans have mobilized in opposition to the nominee.
According to a nonpartisan report by the California Legislature, more than 5 million Californians had their unemployment benefits delayed during the pandemic. An additional 1 million had their unemployment benefits wrongfully denied. “The vast majority, over 95%, of the fraud in the unemployment system, not just in California but across the nation, was in the pandemic unemployment assistance program, a program passed by Congress,” Ms.said. “The unemployment pandemic assistance program did not have the safeguards that regular unemployment insurance does.”
“As soon as we knew there was fraud happening, I shut the door to that fraud. I made changes to the program,” Ms.said. “To be very clear, the [California] state auditor never found that my eliminating eligibility requirements resulted in any of the pandemic unemployment system fraud.” “If finalized, the new regulation would strip 21 million individuals of their ability to be independent contractors and to enjoy the flexibility this provides,” said Sen. Bill Cassidy, Louisiana Republican. “A law rejected in California is not a policy that we should spread across the nation.”
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