MADISON, Wis. — Wisconsin is suing the Trump administration over the termination of federal funding for improvements to the state’s unemployment insurance system, Gov. Tony Evers’ office announced Friday, Oct. 9. Evers, the Wisconsin Department of Justice and the Department of Workforce Development are leading the legal challenge. The state says the federal government ended millions of dollars in support without notice, disrupting work to modernize the system and strengthen fraud controls. The announcement did not specify the lawsuit’s filing location or the amount of funding at issue. The U.S. Department of Labor said it terminated the investments because they “do not effectuate agency priorities.” Evers said his administration had repeatedly asked the federal government to release the funds, including in a letter sent to President Donald Trump. Those requests, he said, had gone largely unanswered. He argued the cutoff would stall a multiyear modernization effort that followed the pandemic, when unemployment claims overwhelmed systems across the country. Wisconsin’s project has aimed to replace outdated technology, make services more efficient and timely, and improve the detection of fraud and improper payments. Evers said the system had undergone nine audits over three years since modernization began, with no previously undiscovered fraud identified. The dispute puts federal priorities and state efforts to improve a service relied on by workers who lose their jobs at odds. The administration’s position is that the investments do not meet its priorities; Wisconsin says withholding the funds undermines efforts to prevent fraud and improve the unemployment program.