In a letter to LePage on Monday and obtained by FoxNews.com, the department said the Republican governor violated the terms of federal laws governing money used to pay for most of the mural’s price tag when he removed it over concerns about the message it sent.
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Gay Gilbert, administrator of the U.S. Labor Department’s office of unemployment insurance, said LePage would have to return the money to the unemployment trust fund states use to pay jobless benefits. The federal government manages the funds, which are financed through unemployment insurance taxes that employers pay.
Under federal law, states have limited discretion on how to spend that money, which includes paying for furnishing public employment offices.
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