Trump threatens nationwide withholding of unemployment funds to fight fraud

The Trump administration says it will use every lever to curb waste, fraud and abuse in state unemployment programs, including withholding federal administrative funds from states for the first time, a move that could affect benefits across all 50 states. With about 2 million people currently on unemployment benefits and roughly 229,000 new claims each week, officials frame the anti-fraud push as necessary, while critics argue it would undermine vital support and politicize welfare enforcement.