The US Department of Labor has halted federal funds intended to enhance state unemployment insurance systems and intercept potential fraud, Bloomberg Law has discovered. The decision, detailed in a letter dated May 22, communicates that such grants no longer serve the US Department of Labor’s priorities. This discontinuation comes as part of a wider evaluation of funds brought forth by the American Rescue Plan Act, a $1.9 trillion stimulus implemented by Democrats in 2021 to prop up an economy besieged by the pandemic. The need for improvements of the unemployment insurance system became a national concern during the nascent stages of the pandemic.

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