President Trump accepted Labor Secretary Lori Chavez-DeRemer's resignation Monday after an internal investigation into her conduct. She met with Trump and White House Chief of Staff Susie Wiles in the Oval Office, where they agreed an upcoming inspector general report would likely be damaging to her.

The departure creates an opening for Trump to install someone more aligned with his administration's priorities. Much of his second-term agenda centers on the Labor Department: expanding apprenticeship programs, reviving domestic manufacturing, and addressing artificial intelligence's impact on jobs. The department controls workforce development grants and oversees workplace safety standards.

Deputy Secretary Keith Sonderling became acting secretary. Colleagues said he effectively ran the department during Chavez-DeRemer's tenure while she remained disengaged from daily policy work. A former department chief of staff described her as "a blank page on so many things" who wasn't particularly aggressive.

Chavez-DeRemer was an unusual choice from the start—an Oregon Republican and daughter of a Teamster, recommended by Teamsters President Sean O'Brien after she lost her 2024 congressional race. Trump sometimes joked about her labor background, telling her at an event: "Considering she's a Democrat, you're doing a very good job."