House GOP calls on Biden to withdraw Labor secretary nominee: 'Disaster for workers and our economy'

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Biden delivers remarks on his nomination of Julie Su for Secretary of Labor

The White House says Su will help build a 'more inclusive economy.'

FIRST ON FOX: House Republicans from the highest echelons are calling on President Biden to withdraw his nominee for the secretary of labor over her career track record.

House Ways and Means Committee chairman Jason Smith, R-Mo., alongside House Education Committee chairwoman Virginia Foxx, R-N.C., House Speaker Kevin McCarthy, R-Calif., and Rep. Michelle Steel, R-Calif., led a letter to Biden on Thursday regarding acting Labor Secretary Julie Su’s nomination for the full-time gig.

"Deputy Secretary of Labor Julie Su’s record of continual failure and her nomination to become Secretary of the Department of Labor is deeply concerning," Steel told Fox News Digital in a statement.

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House Ways and Means Committee chairman Jason Smith, R-Mo., alongside House Education Committee chairwoman Virginia Foxx, R-N.C., House Speaker Kevin McCarthy, R-Calif., and Rep. Michelle Steel, R-Calif., led the letter to Biden regarding acting Labor Secretary Julie Su’s nomination for the full-time gig. (Photo by Roy Rochlin/Getty Images for One Fair Wage)

"During her time at the Labor Workforce Development Agency, Ms. Su did nothing but harm California’s workforce, oversee billions of dollars in fraudulent benefit payments, and further exacerbate the supply chain crisis," Steel continued.

"I urge President Biden to immediately rescind his nomination of Ms. Su for this important position," the California Republican added. "Americans cannot afford another leader who is not up to the task of healing our economy and bolstering our workforce. "

In the letter, the lawmakers wrote they are "deeply concerned by the prospect of Ms. Su serving as the head of DOL on an acting basis or as the Secretary of Labor."

"Ms. Su’s record as Secretary of California’s Labor and Workforce Development Agency (LWDA) includes failing to prevent fraud in the state’s unemployment insurance (UI) system, resulting in billions of misspent taxpayer dollars, and promoting radical policies such as California Assembly Bill 5 (AB-5) that imposes a rigid worker classification test which restricts Americans’ right to work as independent contractors and weakens supply chains," the Republicans wrote.

"Similar actions at the federal level would be a disaster for workers and our economy," the lawmakers warned. "Accordingly, we will closely monitor her tenure as Acting Secretary of Labor, and we will strongly oppose her confirmation by the Senate."

In the letter, GOP lawmakers, including Rep. Jason Smith, R-Mo., (Left), wrote they are "deeply concerned by the prospect of Ms. Su serving as the head of DOL on an acting basis or as the Secretary of Labor." (Bill Clark/CQ-Roll Call, Inc via Getty Images))

The Republicans wrote that, as "the head of LWDA, Ms. Su oversaw the Employment Development Department (EDD), which manages UI claims and other benefits programs for the state," and in "that role, Ms. Su presided over severe operational failures at EDD."

"A January 2021 report issued by the California State Auditor found significant weaknesses in EDD’s approach to fraud prevention, which led to billions of dollars in improper UI benefit payments.4 According to the report, EDD paid $10.4 billion on claims that it later determined may be fraudulent," the lawmakers wrote.

"The report specifically stated that $1 billion of this $10.4 billion was due in part to a decision to streamline EDD’s process by removing a basic safeguard against paying individuals with unconfirmed identities," they continued.

"As explained by the state’s auditor, ‘because the EDD leadership who made these decisions did not adequately understand how the stop payments worked, EDD waived the barriers to payment for almost 77,000 claims and paid more than $1 billion on claims that it has determined are potentially fraudulent.’ While EDD later estimated the amount of fraud to be $20 billion, an analysis from Lexis Nexis Risk Solutions estimated total fraud of $32.6 billion when other benefit programs administered by EDD were also considered."

The lawmakers wrote that Su "demonstrated an inability to ensure taxpayer funds were appropriately spent in California and admitted as much in comments following the January 2021 audit report, stating, ‘There is no sugarcoating the reality, California did not have enough security measures in place.’"

They also pointed out that Su "admitted that at least 10 percent of the more than $100 billion in state and federal benefits EDD paid out were fraudulent and added that the final total could be much higher."

"Ms. Su put blame on shoddy rulemaking by federal officials but said those failings "do not excuse EDD for being under-prepared," they added.

The lawmakers also highlighted Su’s support of "problematic public policies that have only magnified the supply chain crisis in the United States," noting the passage of California’s widely-panned 2019 gig economy law "was so unpopular that lawmakers had to carve out dozens of exemptions to favored industries because the law’s requirements were unworkable and unrealistic in today’s economy."

"Because of her misguided record in California, we have major concerns about potential disastrous ramifications at the federal level if Ms. Su becomes Secretary. For these reasons, we request that you withdraw her nomination to serve as your next Secretary of Labor," the lawmakers wrote.

Rep. Steel told Fox News Digital Su's "record of continual failure and her nomination to become Secretary of the Department of Labor is deeply concerning," (Orange County Register/Getty Images)

Thirteen House Republicans signed the letter to the president, including Reps. Darrell Issa and Young Kim of California.

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Almost every Republican member of the California congressional delegation signed onto the letter that hit the White House on Thursday morning.

The White House did not immediately respond to Fox News Digital’s request for comment.