West OC Times

WASHINGTON, D.C. - With recent reporting finding that Acting U.S. Labor Secretary Julie Su has forgiven California’s $32 billion unemployment insurance debt, Rep. Michelle Steel is leading all California Republicans in the U.S. House in demanding an explanation from Su and calling for an end to her obstruction of congressional oversight.

The delegation’s letter notes that the Department of Labor “is now turning a blind eye to billions of dollars in fraud” and that the action contradicts Su’s testimony before Congress in May.

The federal loan was granted after the California state agency responsible for distributing pandemic unemployment insurance benefits paid out over $30 billion in fraudulent payments. The California agency was overseen by Su at the time, who has now used her federal authority to forgive the debt incurred on her watch.

During a May House Education and Workforce Committee hearing, Steel questioned Su on the fraudulent payments amid evidence that Su’s department may forgive California’s debt. Su claimed it was “absolutely false” that the Department of Labor would forgive fraudulent payments and declined to take responsibility for the fraud on her watch in California.

“In a May hearing, I warned that forgiving California’s debt would be an unacceptable conflict of interest on Julie Su’s part. She denied plans to do so and subsequently failed to be forthcoming to Congress. Now, Su has used her federal power to cover for her negligence in California and violate the testimony she gave Congress while under oath,” said Rep. Steel.

“Further, in that same hearing, Julie Su declined to take responsibility for the fraud incurred on her watch in California – even though the state auditor warned that her programs were uniquely vulnerable. Now, her Department of Labor has disgracefully cleared the books,” added Rep. Steel.

The state auditor’s report came in January 2021 and noted that “despite repeated warnings, EDD (Employment Development Department) did not bolster its fraud detection efforts until months into the pandemic.”

Additionally, Su responded vaguely and unclearly to follow-up requests for information by Rep. Steel and House Ways and Means Committee Chairman Jason Smith, declining to answer basic questions regarding her intentions before taking this action.

Steel’s letter requesting an explanation of Su’s contradictory statements and a full accounting of the issue can be found here.

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