A new federal audit paints a troubling picture of Wisconsin’s unemployment insurance system, revealing that the state improperly paid $248 million in benefits—largely to people who weren’t looking for work.

Between July 2021 and June 2024, the U.S. Department of Labor flagged a 24.54% improper payment rate, more than twice the federal standard. The audit identified work search violations as the biggest driver of fraud and waste, accounting for over 66% of the overpayments, according to True North News.

Nearly 16% of those improper payouts went directly to claimants who failed to complete or report job search activities—despite this being a core requirement for receiving benefits.

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Even with the data in hand, Governor Tony Evers vetoed a series of reform bills passed by the Legislature to strengthen oversight and crack down on abuse.

Key measures blocked by the governor included:

• AB 162: Mandating that workforce training results be tracked and reported.
  
• AB 167: Expanding the legal definition of misconduct to include property damage and theft.
  
• AB 168: Extending the window to prosecute fraudulent claims.
  
• AB 169: Penalizing recipients who turn down jobs or fail to attend interviews.
  

The reintroduced legislation is expected to be a flashpoint this session, with lawmakers calling for stronger safeguards.

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“This isn’t just about dollars—it’s about trust in public programs,” one legislator said. “When benefits go to people who aren’t trying to find work, it undermines the entire safety net.”

With nearly $1 in every $4 of unemployment payments being sent improperly, the pressure is mounting for Evers to stop blocking reforms—and start protecting taxpayers.