Brian Dake

Acting U.S. Secretary of Labor Keith Sonderling issued formal letters to the governors of 53 U.S. states and territories today, demanding immediate action to combat fraud, waste, and abuse within the unemployment insurance program.

In the letters, the department announced its intent to crack down on rampant fraud and end mismanagement, improper payments, and corruption within the UI program. Acting Secretary Sonderling notified states that, in partnership with the Office of the Inspector General, the department will use every available enforcement tool—including withholding administrative funds from states for the first time in history—to ensure compliance in protecting UI system integrity and safeguarding taxpayer dollars.

In the letters, Acting Secretary Sonderling, a member of President Trump’s Task Force to Eliminate Fraud, led by Vice President JD Vance, detailed how years of failed oversight, outdated technology, weak identity verification, and lax controls allowed unprecedented fraud to flourish.

Among the most glaring examples:

• California – More than $20 billion in debt to the federal government after years of fraud, improper payments, and mismanagement of its UI system.
• New York – Losing an estimated $2 million every day to fraud and improper payments, while posting one of the highest improper payment rates in the nation, exceeding 20%.
• Illinois – Improperly paying out more than $320 million in taxpayer funds at a rate of more than 14%, one of the highest improper payment rates in the nation.

The Department of Labor is committed to rooting out fraud, enforcing UI eligibility requirements, and protecting American taxpayers. States that fail to safeguard these programs jeopardize benefits intended for hardworking Americans who demonstrate a legitimate need for temporary assistance.

Additional guidance and directives will be issued to the states in the coming weeks.

President Trump and Iran declared they’ve reached an agreement intended to end more than three months of war in Iran and reopen the Strait of Hormuz.

The deal, scheduled to be formally signed Friday in Switzerland, marks a major breakthrough in the conflict that set the Middle East aflame and shook the global economy.

“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump wrote on social media on Sunday evening.

Iran’s Supreme National Security Council said the deal was reached “following a difficult and intensive period of negotiations lasting several months.”

If the agreement works as planned, several key developments are supposed to happen almost immediately.

The U.S. and Iran will end the sporadic attacks that have been taking place despite a ceasefire. The Israel-Hezbollah fighting in Lebanon should stop. And Iran and the U.S. will lift their dueling blockades of the Strait of Hormuz.

The text of the deal was not immediately released, but has been widely described by U.S. and Iranian officials and in media reports.

The agreement extends the current U.S.-Iran ceasefire for 60 days. The goal in upcoming talks will be a permanent end to the war.

The text of the deal was not immediately released, but has been widely described by U.S. and Iranian officials and in media reports.

The agreement extends the current U.S.-Iran ceasefire for 60 days. The goal in upcoming talks will be a permanent end to the war.

Wisconsin’s tourism economy is marking another year of growth. The state’s Department of Tourism released new figures on Tuesday showing that Wisconsin broke its tourism record for the fourth consecutive year in 2025, with more than 117 million visits creating $27 billion dollars in total economic impact.

“These numbers are a big deal for our state, our economy, and the countless hardworking folks in the industry who make it all happen,” Gov. Tony Evers wrote in a press release announcing the four-year streak of record tourism numbers.

Around the state, local events saw a surge in attendance last year. The EAA Airventure in Oshkosh brought in more than 700,000 visitors, breaking the previous year’s record by 18,000. In Chippewa Falls, the Northern Wisconsin State Fair saw its highest single-day attendance in 17 years.

The Universities of Wisconsin Board of Regents approved a plan on Thursday to increase tuition across the state’s public university system for the fourth time in as many years.

The Board of Regents voted 15-1 to approve the proposal. It will raise in-state undergraduate tuition by 2 percent and student fees by an average of 3.5 percent for the upcoming school year.

Regent Timothy Nixon voted against the increase, saying he felt raising tuition would burden students and parents with higher costs.

He also said he worried it could come back to bite the university system in future state budget cycles.

“The only thing that the people who control the checkbook and the people that vote for the people that control the checkbook will hear is that we’re increasing tuition four years in a row,” Nixon said at the finance committee meeting. “I think this $22 million will cost us hundreds of millions of dollars in the budget cycle. I don’t think it’s worth it.”

Republicans at the state Capitol have already taken issue with the proposal.

The presumptive GOP nominee for governor, U.S. Rep. Tom Tiffany, was critical of the university system on social media Tuesday, saying he would implement a tuition freeze if elected.

Republican former Gov. Scott Walker implemented a tuition freeze in 2013, which kept in-state tuition for undergraduates flat. It ended in 2023.

On Monday, the Wisconsin Department of Safety and Professional Services (DSPS) announced new state safety codes for electrical and plumbing work will take effect September 1. Beginning on that date, any electrical or plumbing plans submitted for review to DSPS or its delegated agents must adhere to the new code requirements.

The interim update to Wisconsin’s plumbing code provides clarity for stakeholders by addressing inconsistencies between the current state plumbing code, other DSPS rules, and some national standards the department has adopted.

The electrical code update adopts 2023 National Electrical Code (NEC) standards, with specific changes and omissions to ensure it conforms to Wisconsin statutes and is consistent with DSPS procedure. The current Wisconsin electrical code is based on 2017 NEC standards.

The new plumbing and electrical codes are set to be published on June 29, 2026 and take effect
September 1, 2026.

Starting October 1, the code changes will be reflected in questions on the trades exams offered by Wisconsin DSPS and third-party testing company Pearson Vue.

On Monday, The Centers for Medicare & Medicaid Services (CMS) released an Interim Final Rule with Comment (IFC) requiring that certain adult Medicaid applicants and enrollees must, as a condition of Medicaid eligibility, meet an 80 hours per month work requirement, through employment, education, work programs, or community service. The rule establishes a nationwide operational framework designed to promote economic stability, self-sufficiency, and independence.

Issued under Public Law 119-21, which CMS refers to as the Working Families Tax Cut (WFTC) legislation, the rule establishes the standards states must use to implement the statutory work requirement, including clear expectations for eligibility determinations, exemptions, verification, and state reporting requirements. It reflects extensive coordination with states and builds on CMS’ ongoing work to modernize eligibility systems and improve beneficiary interactions with states, while improving accountability.

This rule defines which adults ages 19 through 64 will be required to demonstrate work requirement activities. The rule also defines which individuals are not subject to the requirement because of health-related needs and other qualifying circumstances. These exemptions include, but are not limited to, individuals who are pregnant, postpartum, disabled, medically frail, American Indian or Alaska Native, parents or caregivers of young children and people with disabilities, and those who are already complying with similar requirements through the Supplemental Nutrition Assistance Program (SNAP) or the Temporary Assistance for Needy Families (TANF) program.

The rule also includes state data reporting requirements and establishes requirements for how states must assess and verify compliance and communicate the new requirement to Medicaid applicants and beneficiaries. These provisions are expected to promote transparency, reduce administrative burden, and ensure states provide clear, actionable guidance to new applicants and Medicaid beneficiaries on how to meet the new eligibility requirement.

CMS is supporting states as they implement the requirement through a combination of federal resources, technical assistance, and private-sector collaboration. This includes $200 million in Government Efficiency Grants authorized under the WFTC legislation to support state system modernization and administrative capacity, as well as more than $600 million in committed support from private-sector technology vendors to help states update eligibility and enrollment systems, and support for outreach to Medicaid beneficiaries. These investments build on CMS’ broader modernization efforts, including expanding the use of automation, data integration, and real-time verification to improve efficiency, strengthen oversight, and enhance the beneficiary experience.

The work requirement must be implemented no later than January 1, 2027, in applicable states, although some states—such as Nebraska —has already implemented, and other states are considering early implementation.

President Trump on Monday adjusted tariffs on some aluminum, copper and steel imports.

In a proclamation, the president lowered tariffs on some aluminum and steel derivative products, including agricultural equipment and certain heating, air conditioning and ventilation systems, from 25 percent to 15 percent.

President Trump initially imposed 25 percent tariffs on aluminum and steel derivative products on April 2. In doing so, he cited Section 232 of the Trade Expansion Act of 1962 — which gives the president the authority to impose restrictions on imports under national security grounds.

The president stated Commerce Secretary Howard Lutnick recommended that he reduce those tariffs, citing “recent circumstances” that “have affected and are affecting” domestic industries that use the aforementioned equipment.

“These products also serve an important role in productive domestic economic activity,” the proclamation states. “For example, American farmers use agricultural equipment to produce the food upon which our Nation relies; construction equipment is essential for the continued reindustrialization of our Nation; and material-handling equipment enables industrial logistics and factory operations.”

Under the order, companies from certain foreign countries can qualify for a 10 percent tariff on products “composed” entirely of aluminum or steel that was melted and poured in the U.S.

That provision applies to companies located in Argentina, Ecuador, El Salvador, Guatemala, Japan, Liechtenstein, South Korea, Switzerland, Taiwan, the United Kingdom and the European Union.

As for Canadian and Mexican products “that qualify for preferential tariff treatment” under the U.S.-Mexico-Canada Agreement on trade, 25 percent tariffs will apply “only to the non-U.S. content” of the product.

“For purposes of this clause, ‘non-U.S. content’ means the total value of the product minus the value attributable to parts produced in the United States,” the proclamation reads.

President Trump first implemented Section 232 tariffs on aluminum and steel imports in 2018, during his first term in office.

The U.S. Department of Labor’s Wage and Hour Division today issued four opinion letters designed to promote clarity, consistency, and transparency in the application of federal wage and hour standards under the Fair Labor Standards Act.

The opinion letters provide official written interpretations from the division that address real-world questions from individuals, companies, or organizations. They explain how the FLSA applies to the specific factual circumstances presented and may also have a broader interest to others impacted by the same or similar issues.

“Opinion letters explain how the laws enforced by the division apply in specific situations and circumstances that are faced by employees, employers, and others every day across America,” said Wage and Hour Division Administrator Andrew Rogers. “The letters issued today explicate important and longstanding principles under the Fair Labor Standards Act, including compensable time, exemptions, and bonuses included in the regular rate of pay.”

The following opinion letters were issued today:

• FLSA2026-5: Whether an employee exempt pursuant to paragraph 13(a)(1) of the FLSA can perform additional work in a secondary role at an hourly rate, and, if so, what overtime implications may arise.
• FLSA2026-6: Whether a bonus calculated by comparing an employee’s total straight-time and overtime earnings to the total straight-time and overtime earnings of all employees eligible for the bonus is a “percentage of total earnings” bonus under 29 C.F.R. 778.210 that provides for the simultaneous payment of any overtime compensation due on the bonus, thus satisfying the FLSA’s overtime pay requirement.
• FLSA2026-7: Whether time spent during a meal break voluntarily traversing an employer’s premises and passing through a controlled access entry and exit is compensable under the FLSA when the employer allots employees a 30-minute meal period during which they are allowed to remain on the premises.
• FLSA2026-8: Whether certain pre-shift activities by hospital employees are compensable work and, if so, whether the hospital’s practice of rounding employees’ clock-in time to their scheduled shift start time is permissible.

The number of small businesses in the state expanded rapidly in the post-pandemic period, a new
Wisconsin Policy Forum report finds. The number of establishments in the state with fewer than 500
employees surged 20.2% between 2020 and 2025, far outpacing their growth in the prior decade.

While this increase may signal an entrepreneurial upswing, growth has not been consistent across
business sizes, industries or geographies. The number of micro-businesses with fewer than 10 employees has grown rapidly, but the number of establishments with 100 or more employees has
increased much more slowly.

Wage and payroll growth among Wisconsin small businesses has been strong, particularly in the 2021 to 2023 period of high inflation. This dynamic suggests that the labor market has tightened and
become more expensive for small business owners, which may have pressured their margins.

The retail trade sector has long had the largest number of small business establishments in Wisconsin. While this remained the case as of 2024, retail and wholesale trade have seen the largest declines in total establishments, likely a consequence of the ongoing shift to e-commerce.

In recent years, there has been particularly strong growth in the number of health care and social
assistance small businesses. This sector also has contributed heavily in terms of job creation. From
2010 to 2024, small health care establishments added 38,640 jobs, accounting for roughly two-thirds
of net small business job growth across all sectors.

Meanwhile, the share of Wisconsin small business employees working in manufacturing was 1.78 times higher than the national share in 2024. Our state’s continuing reliance on the manufacturing industry produces exports and jobs with relatively high average wages, but it also creates exposure to sector specific turbulence. Several smaller metro areas in Wisconsin remain heavily reliant on manufacturing, which represents both a strength and a potential risk.

The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported today.

Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.

While the annual rates were in line with forecasts, the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease.

Goods prices jumped 0.7% in April, pushed again by gasoline, which surged 5.5%. Services prices rose 0.3%, which included a 0.6% acceleration in the housing and utilities category and a 0.5% increase in food services and accommodations.

Housing prices broadly increased 0.5%, the biggest monthly gain going back at least until January 2025. Services excluding food, energy and housing rose just 0.2% for the month.