Wisconsin, 13 other states sue U.S. after Trump administration kills jobless pay upgrade grants

By: Erik Gunn

Outlets: Wisconsin Examiner

Published: October 9, 2026

Words: 817

Last Updated: 1 week, 1 day ago


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Wisconsin and 13 other states have sued the Trump administration for canceling $45 million in federal grants to modernize their unemployment insurance systems after the COVID-19 pandemic strained state jobless pay programs.

The grants were awarded from the 2021 American Rescue Plan Act enacted in the first year of President Joe Biden’s administration. Five months after President Donald Trump took office, the U.S. Labor Department canceled the grants in May 2025, according to …

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