Wisconsin and Maryland Lead Legal Challenge
On Friday, Wisconsin Attorney General Josh Kaul said he will help lead a legal challenge to the Trump administration over reductions in unemployment insurance funding. Alongside Maryland Attorney General Anthony Brown, Kaul is spearheading the case, which seeks to undo the U.S. Department of Labor's decision to halt more than $45 million in grants for six programs that states received under the American Rescue Plan Act. Wisconsin's share of the loss came to roughly $10 million, money Kaul said was intended for upgrading unemployment insurance technology and stopping fraud.[S1][S2]
Impact on Wisconsin's Modernization Project
According to Kaul, Wisconsin's portion of the six programs was eliminated entirely, forcing the state Department of Workforce Development to halt its unemployment insurance upgrade work right away. The department would need to bring in a different vendor and begin the effort anew to finish what it planned. It has already spent $8.2 million on the project, funds that cannot be recovered. Kaul noted that other states face the same situation, with their projects either reduced in scope or abandoned.[S1]
Legal Claims and Political Reactions
The suit claims the Department of Labor broke the terms of its grant agreements, improperly added new conditions to the grants, and failed to provide states with formal notice or an opportunity to challenge the termination. Gov. Tony Evers supports the lawsuit, arguing the cuts undercut the president's early second-term pledges to combat waste, fraud and abuse. Ten other attorneys general, among them Illinois AG Kwame Raoul, plus Kentucky Gov. Andy Beshear and Pennsylvania Gov. Josh Shapiro, have joined Kaul and Brown in the case.[S1]
