US Department of Labor Announces Decision to Cancel Unemployment Insurance Integrity and FraudPrevention Program

TOPEKA—The Kansas Department of Labor (KDOL) is expressing deep concern following the U.S.
Department of Labor’s (USDOL) recent decision to discontinue the Unemployment Insurance (UI) Integrity
and Fraud Prevention program—a vital initiative developed to strengthen state UI systems.

“This program was a critical cooperative program with the federal government developed to strengthen state UI
systems in response to the unprecedented disruptions and vulnerabilities exposed by the COVID-19 pandemic,”
said KDOL Secretary Amber Shultz. “Its purpose was to enhance system integrity, prevent fraud and support
modernization efforts. Terminating this partnership now leaves states more vulnerable to the very threats we
were called to confront.”

The program has played an essential role in supporting key security improvements that protect taxpayer dollars,
including identity verification tools, fraud analytics and system safeguards. These tools were implemented to
directly counter criminal attacks and operational breakdowns that strained unemployment systems and diverted
insurance payments from Kansans.

A 2023 report by the United States Government Accountability Office noted that many states failed to perform
recommended benefit payment control crossmatches, and a significant number did not carry out required
recovery activities. The findings highlighted the need for robust federal investment and partnership.

“The end of this security collaboration will negatively impact KDOL’s ability to deliver timely insurance
payments, protect taxpayer dollars and safeguard the identities of thousands of Kansans,” Secretary Shultz said.
“Terminating this security program not only undermines the substantial progress already made, it also weakens
our readiness and ability to manage future crises and attacks by cybercriminal enterprises.”