Alabama is joining the Trump administration’s campaign against unemployment fraud and waste in federal programs, with state workforce officials pointing to one of the lowest improper payment rates in the country.

Alabama Department of Workforce Secretary Greg Reed announced the state’s partnership with the U.S. Department of Labor and Secretary Keith Sonderling, who recently sent a letter to all states urging them to investigate and root out waste and fraud in unemployment insurance programs.

“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,” Reed said. “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.”

Alabama’s numbers back up the claim. The state’s improper payment rate, which measures the share of benefit funds distributed incorrectly through both overpayments and underpayments, stood at 6.07% for 2025, among the lowest in the nation. The state’s fraud rate for 2025 was 1.79%.

Both figures mark sharp improvements from the height of the Covid-19 pandemic. Alabama’s improper payment rate has dropped 74.66% since 2021, and its fraud rate has fallen 87.18% over the same period.

The agency credits new technology for the gains, including enhanced fraud detection systems, procedural changes, and investment in staff training. Alabama is also one of several pilot states testing login.gov, a federal platform that provides identity verification for government agency partners and aims to reduce fraud risk while cutting costs for taxpayers.

Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].