July 13, 2026
MADISON, Wis. — Wisconsin Gov. Tony Evers is criticizing the Trump administration for what he called the use of misleading data and flawed analysis to justify threats to withhold funding for the state’s unemployment insurance program, escalating an ongoing dispute over federal support for efforts to modernize Wisconsin’s system.
In a letter sent Friday to Labor Secretary-designee Keith Sonderling, Evers challenged recent federal correspondence that accused Wisconsin of failing to adequately prevent unemployment insurance fraud and protect taxpayer dollars. The Democratic governor argued that federal officials are mischaracterizing the state’s record while continuing to withhold funding intended to strengthen fraud prevention measures.
The letter marks the fourth time Evers has appealed to the administration to restore approximately $29 million in federal grant funding that Wisconsin officials say was terminated in 2025 without notice. The money had been designated for projects to modernize the state’s unemployment insurance system, including initiatives aimed at reducing fraud, preventing overpayments and improving the efficiency of benefits processing.
“As governor, I take preventing fraud, waste, and abuse and ensuring the appropriate use of taxpayer dollars very seriously,” Evers wrote in the letter.
Evers said his administration undertook extensive modernization efforts after Wisconsin’s aging unemployment system struggled under the surge in claims during the coronavirus pandemic. The governor said the upgrades included new technology designed to detect fraud and improve program integrity.
According to the governor’s office, Wisconsin’s unemployment insurance program has undergone nine audits over the past three years since the modernization effort began, with no previously undiscovered fraud identified during those reviews.
The dispute centers on federal grants that were part of a broader effort to support unemployment insurance modernization. Wisconsin officials say the Trump administration canceled $29 million earmarked for the state as part of a broader termination of $675 million in grants affecting unemployment systems in more than 30 states and territories.
According to documents cited by the governor’s office, the U.S. Department of Labor said the funding was terminated because it “does not effectuate agency priorities.”
Evers argued that the decision conflicts with the administration’s stated commitment to combating fraud in unemployment programs, noting that the withheld funding was intended to strengthen anti-fraud efforts.
The governor’s latest request follows previous appeals, including a letter sent directly to President Donald Trump, seeking restoration of the funding. According to Evers’ office, those requests have not received a response.
The Labor Department has not publicly responded to the governor’s latest letter.
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