Alabama Department of Workforce Joins the Trump Administration’s USDOL and Secretary Keith Sonderling in Combatting Waste and Fraud

FOR IMMEDIATE RELEASE: June 24, 2026

Alabama Department of Workforce Joins the Trump Administration's USDOL and Secretary Keith Sonderling in Combatting Waste and Fraud

MONTGOMERY - Alabama Department of Workforce Secretary Greg Reed is proud to join the Trump Administration's Department of Labor in combatting waste and fraud in federal programs, including unemployment insurance.

"We're happy to say that here in Alabama, we are being proactive and taking steps to improve the way we approve unemployment compensation claims and are actively investigating and investing in ways to prevent fraud in the future," said Reed. "I commend President Trump and Secretary Keith Sonderling in their efforts to combat waste and fraud in our country. ADOW is proud to be a part of this effort and we are poised to become a national leader in preventing waste. We are looking forward to working with the administration in the days ahead."

Recently, the USDOL sent a letter to all states encouraging them to investigate, identify, and rectify waste and fraud in unemployment insurance programs.

In Alabama, the improper payment rate, which measures the percentage of total benefit funds distributed incorrectly. It encompasses both overpayments (funds given to ineligible claimants or in excessive amounts) and underpayments (funds owed but not paid), divided by the total amount of benefits paid, is 6.07% for 2025, among the lowest in the country. Additionally, Alabama's fraud rate for 2025 is 1.79%.

These are significant improvements from previous years, including 2021, during the height of the Covid-19 pandemic. Alabama's improper payment rate has decreased by 74.66% since 2021, and its fraud rate has decreased 87.18%.

(Source: https://oui.doleta.gov/unemploy/performance/StatePerfScorecard.html)

These improvements have occurred through the agency's use of new technology, including enhanced fraud detection systems and deterrents, changes in procedure, and investment in staff training.

Alabama is also one of several pilot states that are testing and ultimately implementing login.gov, which provides authentication, basic identity verification, and enhanced identity verification for government agency partners.

Login.gov saves users time and protects them from identity theft, reduces costs, complexity, and fraud risks agencies, ensures consistent cross-agency security and anti-fraud practices, and creates Government-wide efficiencies and saves taxpayer dollars.