US Labor Secretary Lori Chavez-DeRemer has resigned from the Trump administration amid an active inspector general investigation into misconduct allegations, making her the third cabinet member to depart during the president’s second term.
Lori Chavez-DeRemer stepped down as US Secretary of Labor on April 21, with the White House announcing she would be moving to the private sector. NBC News reported that Chavez-DeRemer had been facing a probe from the Labor Department’s inspector general over allegations including travel fraud, an alleged affair with a member of her security team, and other conduct concerns. Her attorney said the resignation “is not the result of legal wrongdoings” and described it as a personal decision.
Labor Secretary Resignation Adds to Trump’s Cabinet Instability
The inspector general investigation had already claimed multiple senior Labor Department staffers, with Chavez-DeRemer’s chief of staff and deputy chief of staff both leaving in March after being placed on administrative leave. A formal interview between Chavez-DeRemer and the inspector general’s office had been scheduled for the week of her resignation, according to NBC News. Chavez-DeRemer pushed back against the circumstances of her departure in an X post on Monday, writing that the allegations against her “have been peddled by high-ranked deep state actors” coordinating with media to undermine Trump’s agenda. White House communications director Steven Cheung said she “has done a phenomenal job in her role by protecting American workers.”
Sonderling Steps In as Acting Secretary
Deputy Labor Secretary Keith Sonderling, who had already been running much of the department’s day-to-day operations, has been named acting secretary. Sonderling has been a central figure in the administration’s push to open 401k retirement plans to alternative assets including digital assets. The White House had previously cleared a Labor Department rule proposal that could expand crypto access in retirement plans, a process Sonderling is expected to continue overseeing. The Trump administration’s executive order directing the Labor Department to reassess restrictions on alternative assets in defined-contribution plans remains active, and the department had already withdrawn the Biden-era guidance that urged fiduciaries to exercise extreme caution around crypto in 401k portfolios.
The Broader Pattern of Cabinet Departures
Chavez-DeRemer’s exit follows those of former Homeland Secretary Kristi Noem, who was fired in March after criticism over 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 departing secretaries were women. The pace of senior departures adds pressure on the administration heading into the 2026 midterm cycle, and raises questions about stability within departments managing significant regulatory agendas. The Labor Department’s role in shaping crypto-accessible retirement investment rules means Sonderling’s leadership there carries direct implications for the digital asset industry, as the 401k rule heads toward its public comment period.
Trump has not yet indicated who he intends to nominate as a permanent replacement for Chavez-DeRemer at the Labor Department.