Senator Rich Draheim (R–Madison Lake), ranking minority member of the Minnesota Senate’s Jobs and Economic Development Committee, today responded to the U.S. Department of Labor’s announcement that it will conduct a targeted review of Minnesota’s Unemployment Insurance program.

“I welcome the review of Minnesota’s Unemployment Insurance program and in fact, I encourage a review of every one of Minnesota’s benefits programs,” said Sen. Draheim. “Governor Walz and the Democrats have mismanaged countless programs. As a state, we need to strive to do better. The governor may not think millions in improper payments is a big deal, but every Minnesotan working hard to afford daily life and pay taxes certainly does.”

The Department of Labor said it will deploy a specialized onsite UI strike team following recent discoveries of widespread fraud in the state’s benefits programs. In a letter to the Minnesota Department of Employment and Economic Development, the agency cited concerns over reports of fraud, waste, and abuse that could threaten the integrity of Minnesota’s UI system. The letter noted issues spanning multiple benefits programs, including the Federal Child Nutrition Program, Early Intensive Developmental and Behavioral Intervention Autism Program, and Housing Stability Services Program.

From July 1, 2021, through June 30, 2024, the Department of Labor estimates Minnesota’s UI program had an improper payment rate of 8.25%, totaling more than $262 million over three years. DEED defines improper payments as overpayments caused by applicant, employer, or program error, underpayments, or fraud.