The US Labor Department can now audit state unemployment programs without asking permission

The US Labor Department is proposing a new rule that lets federal officials access confidential unemployment data from states. This means federal auditors can now directly investigate state unemployment programs for fraud and mismanagement.

For years, federal oversight of state unemployment programs has been limited by states' ability to withhold data. This change means the US Labor Department can now directly access the information it needs to identify and address fraud. It shifts power from states to the federal government in how unemployment funds are managed and audited.