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Rep. Michelle Steel Calls for Accountability on Fraudulent Pandemic Payments

Representative Michelle Steel has written an open letter calling for more transparency from Acting Labor Secretary Julie Sue over the $32 billion in fraudulent pandemic unemployment payments.

Representative Michelle Steel (R-CA) has been seeking more transparency from the Department of Labor over the handling of California pandemic unemployment payments that were lost to fraudulent actions. 

Recently, she wrote an open letter in response to the discovery that Acting Department of Labor Secretary, Julie Su, is seeking to forgive the $23.8 billion federal loan that California received under her watch while she was the California Labor Secretary under Governor Gavin Newsom.

While she was California Labor Secretary, Julie Su was the overseer of labor policy in California, and under her watch, the Golden State lost $32.6 billion in unemployment payments. This also came after the California auditor warned Julie Su about the susceptibility of her pandemic programs to fraud. 

In her open letter, Rep. Steel accused Acting Labor Secretary Julie Su of “obstructing Congressional oversight,” regarding the fraudulent payments in California. 

Rep. Steel stated on X, “By forgiving billions owed to taxpayers from fraudulent unemployment payments, Acting Secretary Julie Su demonstrated a grave conflict of interest and contradicted her testimony under oath. I’m leading a push for answers.”

The post included screenshots of the letter Steel helped to draft which included the signatures of fellow Republican representatives from California including Kevin Kiley, Darrell Issa, and Tom McClintock. 

In a recent committee hearing, Rep. Steel also accused Acting Labor Secretary Su of sweeping the “fraud under the rug,” and addressed the attempt to forgive the federal loan. Su responded by stating that, “It is absolutely false that the guidance that the Department of Labor put out would forgive any fraud.” 

California Representative Mike Garcia also posted on X saying, “Californians deserve accountability. During the pandemic, Sacramento lost billions of dollars in taxpayer dollars due to rampant waste, fraud, and abuse of the unemployment system.” 

He went on to say he was proud to stand with Rep. Steel, “in demanding answers on why this historic theft is being swept under the rug by the Biden-Harris administration. We need transparency and responsible leadership to protect taxpayer dollars.

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