US Labor Secretary Lori Chavez-DeRemer has resigned from the Trump administration amid an ongoing inspector general investigation into alleged misconduct, making her the third cabinet member to leave during the president’s second term.
Summary
- Labor Secretary Lori Chavez-DeRemer resigned on April 21 amid the inspector general’s investigation into allegations of travel fraud, an improper relationship with a security guard and other misconduct.
- Deputy Secretary of Labor Keith Sonderling has been named acting secretary while Trump’s team is deciding on a permanent replacement.
- His departure is the third cabinet exit of Trump’s second term, following former Secretary of State Kristi Noem and former Attorney General Pam Bondi.
Lori Chavez-DeRemer resigned as US Secretary of Labor on April 21, the White House announced that she will move to the private sector. NBC News reported that Chavez-DeRemer was facing an investigation from the Labor Department’s inspector general over allegations that included travel fraud, allegations that she had an affair with a member of her security team, and other ethical concerns. His lawyer said the resignation was “not the result of legal mistakes” and described it as a personal decision.
Labor Secretary’s Resignation Adds to Trump’s Cabinet Instability
The inspector general’s investigation has already said that several senior employees of the Department of Labor, including Chavez-DeRemer’s chief of staff and the deputy chief of staff, left in March after being placed on administrative leave. A formal interview between Chavez-DeRemer and the inspector general’s office was scheduled for the week of his resignation, according to NBC News. Chavez-DeRemer pushed back against the circumstances of his departure from the X post on Monday, writing that the accusations against him were “written by high-level state actors” who liaise with the media to undermine Trump’s agenda. White House communications director Steven Cheung said he “did an outstanding job in his role protecting American workers.”
Sonderling Enters as Acting Secretary
Deputy Secretary of Labor, Keith Sonderling, who had already handled many of the department’s day-to-day operations, was named acting Secretary. Sonderling has been a key player in the administration’s push to open 401k retirement plans to other assets including digital assets. The White House had previously scrapped a Labor Department legislative proposal that would expand crypto access to retirement plans, a process Sonderling is expected to continue overseeing. The Trump administration’s executive order directing the Department of Labor to review limits on certain assets in defined contribution plans remains in effect, and the department had already rescinded Biden-era guidance that had urged stakeholders to be extremely cautious about crypto in 401k portfolios.
Wide Pattern of Cabinet Departures
Chavez-DeRemer’s exit follows that of former Secretary of State Kristi Noem, who was fired in March after criticism of immigration enforcement, and former Attorney General Pam Bondi, who left the following month amid frustration over her handling of the Jeffrey Epstein files. All three secretaries who left were women. The pace of senior departures adds pressure to administrations heading into the 2026 mid-term cycle, and raises questions about stability in departments managing key regulatory agendas. The Department of Labor’s role in shaping crypto-accessible retirement investment rules means Sonderling’s leadership there holds direct implications for the digital assets industry, as the 401k rule heads into a public comment period.
Trump has not said who he intends to appoint to permanently replace Chavez-DeRemer at the Department of Labor.
