Republicans accuse acting Labor Secretary Julie Su of ignoring fraud in California

The House Republican California delegation accused acting Labor Secretary Julie Su of “turning a blind eye” to fraud after the Labor Department forgave billions of dollars in pandemic-era unemployment insurance debt in the Golden State.

Rep. Michelle Steel led a letter signed by all 12 California Republicans that demanded Ms. Su explain her decision to forgive $32 billion in unemployment insurance debt and called for an end to her “obstruction of congressional oversight.” 

“By all indications, DOL is now turning a blind eye to billions of dollars in fraud during your tenure as California labor secretary,” the lawmakers wrote Thursday. “Yet when pressed on this matter on May 1, 2024, you plainly dismissed responsibility.”

The Washington Times contacted the Department of Labor for comment. 

Before ascending to acting labor secretary, Ms. Su was California’s labor chief, a role that has marred her confirmation in the Senate as permanent secretary in the Biden administration.  

In the California post, she oversaw the state’s disbursement of unemployment benefits as the COVID-19 pandemic closed Golden State businesses and forced millions out of work. 

But California state officials found in an audit report from 2021 that the Employment Development Department, run by Ms. Su, didn’t beef up its fraud protection programs for months into the pandemic and that much of the money fell into the hands of bad actors.  

Ms. Su’s leadership of the EDD has haunted her and has led to numerous hearings.

Last year, Ms. Su argued that the widespread fraud in pandemic unemployment insurance was in the hands of Congress, which passed the massive loan packages without many guardrails.

Ms. Steel argued that Ms. Su’s action to forgive the $32 billion contradicted her prior statements made to the House Education and Workforce Committee where she said that it was “absolutely false” that the Labor Department planned to forgive California’s billions in unemployment insurance debt. The congresswoman also pointed out that doing so would be a “conflict of interest” for Ms. Su because of her time as labor chief in California. 

“Now, Su has used her federal power to cover for her negligence in California and violate the testimony she gave Congress while under oath,” Ms. Steel said.