Nevada just got $72 million to fix unemployment — Will they blow it again?

By Brandon Davis  

Nevada News and Views

Nevada is spending $72 million in federal money to fix its unemployment system.

On July 30, the Nevada Department of Employment, Training and Rehabilitation (DETR) gave an update on a big project to modernize the state’s Unemployment Insurance (UI) system.

The project started in February 2024 using funds from the American Rescue Plan Act, or ARPA.

The goal is to make the system faster, easier to use, and harder for fraudsters to cheat.

But some lawmakers aren’t ready to give DETR a pat on the back just yet.

A History of Problems

Back in 2020, during the COVID-19 pandemic, Nevada’s unemployment system fell apart.

Claims piled up. People waited weeks or months for help. The website crashed often. Meanwhile, scammers took advantage of the chaos, stealing millions of dollars through fake claims.

That mess hurt families, small businesses, and the state’s economy.

Now, the state is trying to fix those problems. DETR says they’ve made real progress. Claims are moving faster. The new website is easier to use. Cybersecurity is stronger.

But a recent audit showed red flags — especially when it comes to how DETR is handling vendor contracts.

According to the audit, there wasn’t enough oversight of the companies hired to do the work. Some costs were unclear. Some subcontractors weren’t tracked closely.

That’s raised concern from lawmakers who don’t want to see this project turn into another waste of taxpayer money.

Conservatives Want Accountability

Assemblyman Greg Hafen is one of those lawmakers sounding the alarm. He and other conservatives say the state needs tighter controls over how the $72 million is spent.

This focus on efficiency and accountability lines up with the broader federal push by DOGE, or the Department of Government Efficiency, which aims to cut down on waste.

Conservatives say Nevada’s oversight efforts are exactly what DOGE is about: making sure public money helps the public — not just contractors and consultants.

It’s About More Than Just Dollars

Fixing the unemployment system isn’t just a budgeting issue. It affects real people. When the system fails, workers don’t get the help they need, and businesses lose reliable employees.

A well-run UI system supports economic freedom. If workers can get fast, accurate benefits when they’re laid off, they’re more likely to get back to work quickly.

Small businesses can plan ahead without fearing long gaps in their workforce.

That’s why conservatives believe this project must succeed — but also be held to high standards.

This is a test of whether state and federal agencies can handle these large projects that directly affect people’s lives.

Critics Say “Just Get It Done”

Some labor groups and left-leaning advocates say the focus should be on finishing the project, not slowing it down with audits and hearings.

Conservatives say oversight doesn’t mean delay — it means doing it right the first time.

Understanding the Impact

Nevada’s path to fixing unemployment is a real-world example of the fight between big government spending and responsible management.

When taxpayer dollars are on the line, conservatives believe every contract should be checked, every dollar tracked, and every promise delivered.

Nevada has a chance to lead by example, and show that good government doesn’t have to mean bigger government.

If Nevada gets this right, other states might follow. And if they don’t? It could be another costly lesson in how not to fix a broken system.

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Brandon Davis is President of DOGE NEVADA, a nonprofit dedicated to exposing government waste, fraud, and abuse in public spending.