Wisconsin’s unemployment insurance program is facing intense scrutiny after a federal audit revealed nearly $248 million in improper payments, much of it going to individuals who weren’t even trying to find work.
The U.S. Department of Labor found that from July 2021 to June 2024, Wisconsin had a 24.54% improper payment rate—more than double the federal threshold set by the Payment Integrity Information Act. A staggering 66.25% of those overpayments were tied to claimants failing to meet work search requirements.
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One of the most troubling findings: 15.96% of all overpayments were directly due to work search violations—indicating the system was routinely sending taxpayer dollars to people who weren’t fulfilling even the most basic requirement for unemployment benefits, according to True North News.
Despite the mounting evidence, Governor Tony Evers has repeatedly vetoed reform legislation aimed at tightening enforcement and closing fraud loopholes. Among the bills blocked were proposals to:
- AB 162: Require state agencies to report outcomes of training and workforce development programs.
- AB 167: Redefine employee misconduct to include theft and destruction of property.
- AB 168: Extend the statute of limitations on felony unemployment fraud to eight years.
- AB 169: Impose penalties on recipients who skip job interviews or turn down work.
Lawmakers say the misuse of unemployment benefits is a growing problem that demands accountability. “We have a UI system that’s leaking hundreds of millions, and we’re doing almost nothing to stop it,” one legislator said. “It’s unacceptable.”
The state Legislature has reintroduced the reform bills this session, reigniting the debate over whether Governor Evers will support taxpayer protections—or continue blocking oversight measures.
With misuse rampant and federal attention growing, the stakes are high. Taxpayers—and job seekers—deserve a system that’s both fair and functional.