Senator Joni Ernst Addresses Unemployment Fraud Among Federal Employees
WASHINGTON – Senator Joni Ernst (R-Iowa) is taking action after identifying a group of individuals she’s labeled as “rip-off artists” who allegedly received “fraudulent unemployment benefits.” This revelation emerged from a federal government audit that has implications for nearly $500,000 in taxpayer money.
In a letter to the Labor Bureau from Associate Inspector Michael C. Mikulka, Ernst noted that just five federal employees were responsible for over $405,000 in misappropriated funds—essentially double-dipping from taxpayer resources.
One case involved a former Department of Veterans Affairs employee who collected over $130,000 in unemployment benefits during six years of employment, even as this individual received several promotions.
Another individual from the US Postal Service was caught siphoning off more than $109,000 in unemployment benefits through a scheme that spanned eight states starting in 2020.
Additionally, a USPS employee was convicted in November 2023 for embezzling over $90,000 after fraudulently claiming unemployment benefits.
This issue doesn’t stop there. The Labor and Workers’ Bureau also discovered another employee received $46,000 in unemployment benefits while still being on federal payroll for a year and a half.
Full-time workers at the Social Security Bureau similarly took over $30,000 in unemployment benefits between 2020 and 2021.
In a statement, Ernst expressed frustration, saying, “Thousands of bureaucrats seem to look out for taxpayers without even bothering to disguise their actions. If the children of the Doge had been more careful, maybe they would’ve avoided this.” It’s a bit of a quirky remark, but it underscores her serious point about accountability.
Ernst continued, emphasizing her commitment to tackling internal fraud: “I’m focused on ending the support for these scammers and ensuring that government employees can’t simultaneously collect wages and unemployment benefits.” It’s a bold stance, for sure.
She feels the fix should be straightforward since the relevant lists are maintained by the government. Historically, as far back as the Jimmy Carter era, government watchdogs have caught numerous federal employees cheating taxpayers while claiming to be unemployed.
A 2022 audit from the Department of Homeland Security showed that over $2.6 million in unemployment benefits were fraudulently obtained by their workforce, all while collecting overtime pay.
Reflecting on the situation, Ernst quipped, “Now it makes sense why bureaucrats have protested against allowing broader access to federal databases to detect fraud.” She linked this resistance to efforts led by Elon Musk to crack down on fraudulent practices at the Treasury.
In January 2023, Ernst requested an investigation from the Pandemic Response Accountability Committee regarding these issues but indicated in a letter to the DOL Inspector General that it seems no actions have been taken yet.
Meanwhile, the Department of Labor’s Employment and Training Department has allocated at least $562 million specifically to combat unemployment insurance fraud.
It’s worth noting that not all government officials are abusing unemployment checks. There have been cases where civil servants themselves have fallen victim to fraud. For example, in 2021, a con artist attempted to cash a welfare check using the name of Ohio Governor Mike DeWine.
