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us department of labor
Trump Loses Another Cabinet Secretary as 'Scandal-Ridden' Chavez-DeRemer Resigns
"Chavez-DeRemer failed to protect workers, jeopardized the Department of Labor's work to support the economy, drove down morale among agency staff, and abused federal government resources to serve her own whims."
Apr 20, 2026
President Donald Trump's "scandal-ridden" Department of Labor leader, Lori Chavez-DeRemer, resigned from her post on Monday, making her the third member of his Cabinet to leave since the beginning of the year, following the firings of former US Attorney General Pam Bondi and Homeland Security Secretary Kristi Noem.
Confirming reports of the latest departure, White House spokesperson Steven Cheung said that "Chavez-DeRemer will be leaving the administration to take a position in the private sector. She has done a phenomenal job in her role by protecting American workers, enacting fair labor practices, and helping Americans gain additional skills to improve their lives."
Her deputy, Keith Sonderling, "will take on the role of acting secretary of labor," Cheung added.
As Politico noted Monday, "Chavez-DeRemer has been under scrutiny since January, when DOL Inspector General Anthony D'Esposito opened an investigation into allegations that she was involved in an extramarital affair with a member of her security detail, that she drank on the job, and that top aides concocted official events to facilitate her personal travel plans."
That probe led to allegations—initially reported by The New York Times in February—that the secretary's husband, Shawn DeRemer, "has been barred from the department's headquarters after at least two female staff members told officials that he had sexually assaulted them." DeRemer denied the claims, and police have reportedly closed a related investigation.
As NOTUS reported Monday:
A source close to the president told NOTUS last week that the White House viewed Chavez-DeRemer as an effective spokesperson for the president's economic message and implementer of workforce policy. But the tales of the labor secretary's alleged scandals had become palace intrigue among people close to and inside of the White House.
Two Republicans who speak with President Donald Trump told NOTUS they expected him to pull the trigger on removing Chavez-DeRemer on Wednesday, when she was due for what was expected to be a bruising hearing in Congress. Some inside the White House anticipated Democrats at the hearing would focus on Chavez-DeRemer's alleged transgressions.
Responding to the resignation on social media, the Democratic Party highlighted Bondi and Noem's ousters, and declared, "This administration is imploding."
Before joining Trump's Cabinet, the outgoing secretary represented Oregon's 5th Congressional District in the US House of Representatives. Rep. Suzanne Bonamici, a Democrat who serves the state's 1st District, said that "Chavez-DeRemer failed to protect workers, jeopardized the Department of Labor's work to support the economy, drove down morale among agency staff, and abused federal government resources to serve her own whims. She should be held accountable for the damage that occurred on her watch."
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No, Says Economist, March US Jobs Report 'Is Not Good'
"The latest jobs data show how President Trump's mismanagement of the economy—both domestically and internationally—is harming workers at home," said another expert.
Apr 03, 2026
As US Labor Secretary Lori Chavez-DeRemer on Friday declared that "America's economic comeback is on full display" and the country's "workers are winning again" due to what the business press and top newspapers called a "strong" March jobs report, some economists stressed the importance of looking beyond the topline figure and one month of data.
The US Bureau of Labor Statistics announced that employers added 178,000 jobs last month, with gains in construction, healthcare, and transportation and warehousing, and declines in the federal government. The unemployment rate fell slightly to 4.3%, with 7.2 million people officially jobless.
"Folks, today's jobs report is not good," declared Heidi Shierholz, president of the think tank Economic Policy Institute (EPI). She pointed to average job growth over the past two months, the reason for the drop in unemployment ("people leaving the labor force"), slowing wage growth, and the fact that "the effects of our war in Iran aren't even in these numbers yet."
EPI senior economist Elise Gould further explained those points on social media. Although the report "came in stronger than expected... much of the gain was a bounce back to February declines (now a loss of 133,000 jobs)," she said. "As a result, average monthly growth the last two months was only 22,500 jobs."
As far as the unemployment rate ticking down, "it's important to note that this happened for the 'wrong' reasons as both the labor force participation and the share of the population with a job also ticked down," Gould continued. "Job gains were strongest in healthcare as striking workers returned to work."
"Attacks on the federal workforce continue," she highlighted, with the sector down 18,000 jobs in March and 352,000 positions since January 2025, when President Donald returned to power. "The vital services federal employees provide cannot be done without these essential workers. The cost of these losses are only just beginning."
"Manufacturing rose 15,000 jobs in March, but still has a huge deficit since Trump took office. Since January 2025, the manufacturing sector has lost 82,000 jobs," the economist noted. "Wage growth has been slowing for the last few months, particularly driven by slower growth for production and nonsupervisory workers, roughly the lower 82% of the workforce."
Gould added that "we don't have the inflation data yet to show real wage changes in March, but slowing nominal wage growth coupled with rising prices from the Iran war almost surely means real wages will suffer, contributing to worsening affordability."
Trump and Israel launched their war on Iran at the end of February, and the new data is from the middle of March, so "the impact of the war and higher fuel prices will be limited" in this report, as Center for Economic and Policy Research co-founder Dean Baker acknowledged. "April could look considerably worse."
Breyon Williams, chief economist at another think tank, Groundwork Collaborative, said that "beyond today's headline bounce, the labor market continues to deteriorate under Trump's economic mismanagement: Hiring has ground to a halt, paychecks are shrinking, and workers are giving up on finding a job altogether. A single month of modest gains can't reverse the damage that the president has inflicted on working families."
A former senior Labor Department official who's now chief of policy programs at The Century Foundation, Angela Hanks, similarly asserted that "the latest jobs data show how President Trump's mismanagement of the economy—both domestically and internationally—is harming workers at home."
"While the topline rate does not yet reflect the war's impact on the job market, wage growth has stalled, and oil prices are skyrocketing, resulting in higher prices for consumers and threatening to weaken the job market," she noted. Specifically, according to a Thursday report from Democratic members of the congressional Joint Economic Committee, Americans spent an extra $8.4 billion at the gas pump in the first month of Trump's war.
"Families are already under tremendous pressure from rising prices, slowing job growth, and mounting debt as they struggle to make ends meet, and not seeing help on the way," said Hanks. "Families and workers across the country deserve leadership that puts them first and works to make living a fulfilling life affordable for everyone. Instead, they're stuck with leaders in Washington more focused on needless and damaging wars and slashing the safety net to pay for them."
After passing a 2025 budget package that gave the rich more tax breaks by slashing over $1 trillion from the safety net, including food assistance and Medicaid—which is expected to leave millions of Americans without health insurance—congressional Republicans are considering more healthcare cuts to fund Trump's war. The Pentagon has asked for at least $200 billion for Iran, and more broadly, the president wants an unprecedented $1.5 trillion in military spending for the next fiscal year.
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New Trump Rule Would Let Private Equity, Crypto ‘Endanger Retirement Savings of Millions'
“This isn’t about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street," said one critic.
Mar 31, 2026
US President Donald Trump's Labor Department on Monday unveiled a proposal that would welcome private equity and cryptocurrency investments into Americans' 401(k) plans, the culmination of an aggressive Wall Street lobbying push that could leave the retirement savings of millions vulnerable to the wild swings of so-called "alternative assets."
The proposed rule, now subject to a public comment period, was issued at the direction of a Trump executive order from last year that was characterized at the time as "the holy grail for private equity."
In addition to giving employers a green light to include private equity and crypto investments in 401(k) plans offered to workers, the new rule would establish a "safe harbor" allowing retirement account administrators to avoid legal action from employees who believe their funds were steered into excessively risky products.
"The legal immunity created by this safe harbor will incentivize financial advisers to pitch these toxic products, which will become ticking time bombs in tens of millions of retirement accounts, which will no doubt result in significant losses," warned Benjamin Schiffrin, director of securities policy at the advocacy group Better Markets. "There are good reasons why 401(k) plans have been considered closed to private markets and cryptocurrencies, and those reasons have not changed. The only thing that has changed is the administration’s support for these industries and regulators’ willingness to do their bidding."
"This is no reason to endanger the retirement savings of millions of Americans," Schiffrin added.
Oscar Valdés Viera, senior policy analyst at Americans for Financial Reform, similarly warned that "opening 401(k)s to these products risks turning workers’ retirement savings into a Ponzi-like scheme that throws a lifeline to an industry scrambling for fresh cash."
"This isn’t about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street," said Viera. "Retirement savers should not be bailing out these high-risk industries and subsidizing the Wall Street and crypto billionaire class."
"Private equity firms should not get a free pass to loot workers’ 401(k) retirement savings."
Americans currently hold over $10 trillion combined in 401(k) plans, a huge trove of wealth that the private equity industry has been working for years to access. The Labor Department indicated that its proposed rule would apply to over 720,000 retirement plans covering roughly 118 million workers.
The American Prospect reported Tuesday that the managers of private equity firms are "already pressuring companies, third-party administrators, and the consultants who advise them to list their offerings" among workers' retirement plan options.
"One staffer at an institutional investor who is not authorized to speak to the media told the Prospect about their primary worry: that private equity will stick their most overvalued companies into continuation funds exclusively for 401(k) plan holders, or 'retail investors,' as they are known," the outlet continued. "Private credit firms are retailoring their funds for 401(k) plans as well, and some of the biggest have already struck deals with asset managers like Voya and Vanguard. 'I’d be shocked if the industry doesn’t attempt to dump their garbage onto retail,' the staffer said."
One recent analysis by the Private Equity Stakeholder Project (PESP) found that private equity funds for retail investors "dramatically underperformed publicly listed stock indexes" in 2025 while charging much higher fees.
Jim Baker, PESP's executive director, said Monday that "private equity firms should not get a free pass to loot workers’ 401(k) retirement savings."
“The bar for including private equity in 401(k)s should be extremely high,” said Baker. “Private equity funds have lagged public markets while charging much higher fees, and public pension funds are pulling back from the asset class. Instead, this rule risks shifting more financial risk onto workers who rely on their retirement savings for long-term security.”
Sen. Elizabeth Warren (D-Mass.) also ripped the Labor Department rule, saying in a statement that "Americans facing an uncertain future in Trump’s economy will now have more reasons to question the security of their retirement savings—all so that Trump’s Wall Street buddies have another pile of cash to play with."
"Anyone who cares about the financial security of working people," said Warren, "should oppose this proposed rule."
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