The Government Accountability Office (GAO) has added unemployment insurance (UI) fraud to its list of “high risk” areas for the Federal government, and has tasked the Department of Labor (DOL) – which provides funding and assistance to states to run their UI programs – with finding a fix to the problem.

President Biden’s budget request for fiscal year (FY) 2023 is seeking $3.4 billion for the Labor Department (DoL) to help modernize unemployment insurance (UI) systems run by states and territories – many of which were overwhelmed with demand during the coronavirus pandemic.

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Wisconsin’s Department of Workforce Development (DWD) has selected Flexion to identify and implement technology solutions for modernizing the states’ unemployment insurance (UI) system.

Labor Secretary Marty Walsh told members of Congress last week that between $600 and $700 million of Federal funding approved under the American Rescue Plan Act will be used to pay for technical assistance to states to improve their unemployment insurance (UI) systems.

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