Gov. Evers urges the Trump Administration to reconsider cutting funds to state’s unemployment insurance project

MADISON, Wis (CIVIC MEDIA) – Wisconsin Governor Tony Evers had sent a letter to the Trump Administration urging the federal government to reconsider cutting nearly $30 million in funding the state planned to use to modernize the unemployment insurance system.

According to a press release, the state had expected to receive approximately $29 million to help support and complete Wisconsin’s years-long efforts to modernize the unemployment insurance system – it would efficiently and effectively prevent benefit fraud and waste. In a letter to the U.S. Department of Labor (DOL) Secretary Lori Chavez-DeRemer, Gov. Evers noted that if the Trump Administration does not reverse course and provide the $29 million in approved funding, “the state will not be able to complete its UI system modernization project, which is designed to use innovative tools to help efficiently and effectively prevent benefit fraud and abuse.”

Wisconsin’s unemployment insurance system programming was developed in the early 1970s. The Evers Administration’s efforts to modernize Wisconsin’s UI system began during the COVID-19 pandemic, during the worst economic crisis in over a decade. The early stages of the pandemic saw state unemployment rates rise from 3.5 percent in February 2020 to 14.8 percent just two months later.

To help respond to these challenges and finally fix Wisconsin’s unemployment system after decades of inaction, Gov. Evers called a special session of the Wisconsin State Legislature and, in February 2021, signed 2021 Act 4, which began the process of modernizing these critical systems to prevent a future emergency from causing a similar crisis. Since then, DWD has advanced swiftly and successfully toward this goal, protecting the integrity of the claims processing system with cutting-edge technology designed to help crack down on fraud and abuse in benefit claims while increasing virtual customer service options.

Additional information on the unemployment insurance modernization project can be found here.