House Republicans from California have voiced strong concerns about the actions of acting Labor Secretary Julie Su, accusing her of neglecting serious fraud issues related to unemployment insurance and debt forgiveness during the COVID-19 pandemic.

The GOP delegation, led by Rep. Michelle Steel, sent a letter to Biden's Labor secretary demanding an explanation and immediate cessation of what they see as an obstruction of congressional oversight, as the Washington Times reports.

On Thursday, the group of 12 California Republican lawmakers formally accused Ms. Su of turning a blind eye to the billions of dollars lost to fraud during her tenure as California's labor chief. The lawmakers' letter directly referenced Ms. Su’s response on May 1, 2024, in which she allegedly dismissed responsibility for the widespread fraud.

Labor Department Forgives $32 Billion, Sparking Outrage

The Department of Labor's recent decision to forgive $32 billion in unemployment insurance debt has been met with significant opposition from California Republicans.

These funds were initially distributed during the height of the COVID-19 pandemic, a period marked by extensive unemployment benefits distributed under the supervision of Su, who was then California’s labor chief.

Steel, in her letter, highlighted that Ms. Su’s decision to forgive this debt directly contradicts her earlier testimony before the House Education and Workforce Committee. According to Steel, Su had previously stated that the responsibility for the fraud rested with Congress due to insufficient safeguards in the loan packages they had approved.

Lawmakers Criticize Julie Su's Past Leadership

Ms. Su's role in California’s Employment Development Department (EDD) during the pandemic has been the subject of extensive scrutiny. An audit in 2021 revealed that the EDD, under Su's leadership, had delayed implementing necessary fraud protection programs, which could have mitigated the massive losses.

The letter from the California Republican delegation stressed that Ms. Su's oversight has led to billions in fraudulent claims, and they are now questioning her actions as acting Labor Secretary. “By all indications, DOL is now turning a blind eye to billions of dollars in fraud during your tenure as California labor secretary,” the lawmakers wrote.

Conflict Of Interest Alleged By California Republicans

Steel and her colleagues have raised concerns about what they perceive as a conflict of interest, given Ms. Su’s previous role as California’s labor chief. They argue that her decision to forgive the debt is an attempt to cover for the mismanagement and negligence that occurred under her watch in California.

The Washington Times reached out to the Department of Labor for a response to the allegations but has yet to receive a comment. This silence has only fueled the frustration among California Republicans, who view the debt forgiveness as a means for Ms. Su to evade accountability.

Calls For Transparency and Accountability

Steel emphasized the importance of transparency and accountability in her letter, accusing Ms. Su of using her federal power to “cover for her negligence in California.” The lawmakers are demanding a detailed explanation for the decision to forgive the $32 billion in debt and are calling for an end to what they perceive as obstruction of congressional oversight.

This letter comes after a series of hearings where Ms. Su’s oversight of the EDD was scrutinized. During these hearings, she pointed fingers at Congress for the fraud, citing a lack of guardrails in the pandemic-era loan packages.

Implications for Julie Su's Future

The controversy surrounding the debt forgiveness and Ms. Su’s past decisions as California labor chief has raised questions about her future as acting Labor secretary.

The California Republican delegation’s letter is a clear indication that they will continue to press for answers and hold Ms. Su accountable for her actions.

The situation has also drawn attention to the broader issue of pandemic-era fraud and the challenges of managing large-scale unemployment benefit programs under unprecedented circumstances. Ms. Su’s role in this, both at the state and federal levels, will likely continue to be a focal point of criticism and investigation.

Conclusion

The House Republican California delegation has taken a strong stance against acting Labor Secretary Julie Su, accusing her of neglecting fraud concerns and using her federal position to cover up past mismanagement.

The controversy centers around the Department of Labor’s decision to forgive $32 billion in pandemic-era unemployment insurance debt, a move that has sparked demands for transparency and accountability.

As this issue continues to unfold, it underscores the ongoing challenges in addressing the fallout from pandemic-era policies and the scrutiny faced by those who were in charge during that critical period.