Latest news with #AndrewStettner
Yahoo
3 days ago
- Business
- Yahoo
Trump Administration Axes $400 Million In State Unemployment System Upgrades, Calls It 'Wasteful': Report
The White House has reportedly chosen to withdraw $400 million in funding that was set aside for states to upgrade their unemployment insurance systems. What Happened: Congress originally designated these funds as part of the $1.9 trillion coronavirus relief package passed in 2021. The goal was to upgrade state unemployment systems, which had been overwhelmed during the pandemic, leading to significant fraud and delays in payments to beneficiaries, reported Axios. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Last week, the Labor Department informed Congress that the grants are being discontinued. The Department's report revealed that about 28% of the funds allocated to states—amounting to $219 million—were dedicated to promoting equity. Axios mentioned that 'equity' in this case refers to efforts aimed at making the unemployment insurance system more accessible and easier to navigate, rather than necessarily in the context of DEI. 'When I left in December, states had spent about $100 million of the $219 million specifically for equity but only $2 million of the $204 million for IT,' mentioned Andrew Stettner, who led the modernization efforts during the Biden administration. Stettner stated that 18 states are presently working on updates to their systems. He warned that pulling this aid now could be disastrous for states just starting these projects. The Labor Department defended the decision by telling Axios that the grants were 'squandered' on 'bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need.'Why It Matters: This decision by the Trump administration is a part of its goal to cut fraud and wasteful spending. Elon Musk, who stepped down on Wednesday, was spearheading these initiatives under the Department of Government Efficiency (DOGE). During his time, DOGE claimed to save $160 billion by eliminating wasteful government spending. However, a recent analysis by the nonpartisan nonprofit agency, Partnership for Public Service (PSP), revealed that DOGE's actions could cost taxpayers up to $135 billion this fiscal year. The analysis included costs related to paid leave for federal employees, rehiring of wrongly dismissed workers, and lost productivity. The figure does not account for the costs of defending multiple lawsuits against DOGE's actions or the estimated loss in tax collections resulting from IRS staff reductions. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Image via Shutterstock Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Trump Administration Axes $400 Million In State Unemployment System Upgrades, Calls It 'Wasteful': Report originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Axios
5 days ago
- Business
- Axios
White House cuts 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 on tap for the next recession. Zoom out: Congress authorized the money in the $1.9 trillion coronavirus relief bill passed in 2021. Congress allocated $2 billion for the efforts, later cutting that funding in half. Those funds were wasted on equity projects, but only a fraction of the money appears to have been devoted to such measures, according to the Labor Department, which sent a notification letter to Congress last week to let lawmakers know "these grants are being terminated." About 28% of the funds granted to states, $219 million, were used specifically for equity, as outlined in a Labor Department report. In this case, "equity" is a term meant to describe efforts to make the unemployment insurance system easier for people to use and access, perhaps not what is typically considered DEI. Efforts to promote equitable access to unemployment insurance "include eliminating administrative barriers to benefit applications, reducing state workload backlogs, improving the timeliness of UC payments to eligible individuals, and ensuring equity in fraud prevention, detection, and recovery activities," according to the report. Follow the money: $204 million was awarded for IT modernization, $134 million for fraud detection, and $93 million for system integrity, such as combating fraud and strengthening ID verification. The IT funds have been spent more slowly while states get projects underway, says Andrew Stettner, who led the modernization efforts during the Biden administration. "When I left in December, states had spent about $100 million of the $219 million specifically for equity but only $2 million of the $204 million for IT," says Stettner, who is now director of economy and jobs at the Century Foundation. 18 states are working on updates to their systems, he says. Pulling this aid will be devastating for the states just getting started on these projects. "States were in the middle of all the planning and procurement. Now they're really holding the bag for finishing," Stettner says. The other side: The grants were "squandered" on "bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need," the Labor Department says in an emailed statement to Axios. "We're committed to ensuring our unemployment system is free from fraud and abuse, and we look forward to partnering with state workforce agencies on real solutions that meet the needs of American workers."
CBS News
27-02-2025
- Business
- CBS News
Unemployment claims rise to 242,000, the highest in 3 months
Applications for U.S. jobless benefits rose to a three-month high last week but remained within the same healthy range of the past three years. The number of Americans filing for jobless benefits for the first time rose by 22,000 to 242,000 for the week ending Feb. 22, the Labor Department said Thursday. Analysts had projected that 220,000 new applications would be filed. Weekly applications for jobless benefits are considered a proxy for layoffs. The four-week average, which evens out some of the week-to-week volatility, climbed by 8,500 to 224,000. Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks or months. "While still far below recession level, this is the highest number of weekly claims yet this year, and that's a yellow caution light for the economy," Andrew Stettner, unemployment insurance (UI) expert at The Century Foundation and former Biden administration UI modernization director, said in a report. "What's more, these worrying indicators don't include hundreds of thousands of layoffs announced by the federal government." On Wednesday, senior U.S. officials set the government downsizing in motion via a memo dramatically expanding President Donald Trump's efforts to scale back a workforce. Thousands of probationary employees have already been fired, and now the Republican administration is turning its attention to career officials with civil service protection. Government agencies have been directed to submit by March 13 their plans for what is known as a reduction in force, which would not only lay off employees but eliminate positions altogether. Despite showing signs of weakening during the past year, the labor market remains healthy. Earlier this month, the Labor Department reported that U.S. employers added 143,000 jobs in January, significantly fewer than December's 256,000 job gains. However, the unemployment rate ticked down to an even 4%, signaling a still very healthy labor market. Even so, some economists in their review of the latest jobless data see signs of a potential downturn. "Today's figure is a big departure from the previous downtrend. It brings the level of claims back to where they were at the end of last summer, but going the other way this time," analysts with High Frequency Economics said in a report. "HFE is already forecasting a sharp slowdown in GDP in the first quarter from the fourth to under 1%. We will mark that down further if [President Trump] goes ahead with 25% tariff barriers on the Northern and Southern borders," they added. Continuing claims rise as well Continuing claims in the week ending Feb. 15 were also up, noted Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, in a note on the latest jobless claims data. "Our final chart shows that continuing claims are closely correlated with the number of people unemployed for less than 26 weeks, said Tombs, adding that "the number of people who are unemployed but who have exhausted their 26-week entitlement to jobless benefits likely has continued to rise." Late in January, the Federal Reserve left its benchmark lending rate alone after issuing three cuts late in 2024. Fed officials are closely monitoring inflation and the labor market for signs of a potentially weakening economy. They expect only two rate cuts this year, down from previous projections of four. The most recent government consumer prices report that showed that inflation accelerated last month, creating some doubt about whether the Fed will be moved to cut rates at all this year. The new jobless benefits claims data shows that inflation has remained stubbornly above the Fed's 2% target for roughly the past six months after it fell steadily for about a year and a half. The consumer price index increased 3% in January from a year ago, up from a 3 1/2 year low of 2.4% in September. According to the CPI report, egg prices, which continue to soar, jumped more than 15% in January from a year ago, to approximately $4.95 a dozen. In 2019, consumers could pick up a dozen eggs for around $1.54, but by last year the price had soared to $4.15 — a 170% increase, according to CBS News' price tracker of everyday goods. Overall, while layoffs remain low by historical standards, some high-profile companies have announced job cuts already this year. Workday, Dow, CNN, Starbucks, Southwest Airlines and Facebook parent company Meta have all trimmed their workforces already in 2025. Late in 2024, GM, Boeing, Cargill and Stellantis announced layoffs. The total number of Americans receiving unemployment benefits for the week of Feb. 15 fell by 5,000 to 1.86 million.
