May 19,2021

Republicans Introduce Bill to Fight Unemployment Fraud

Washington, D.C.--Today, U.S. Senator Mike Crapo (R-Idaho), the top Republican on the Senate Finance Committee, introduced the Combatting COVID Unemployment Fraud Act of 2021.  The bill will prevent fraud in COVID unemployment programs, recover fraudulently paid benefits, and provide relief for taxpayers and victims of unemployment fraud.

A companion bill was introduced in the House by Ways and Means Ranking Member Kevin Brady (R-Texas).

“Given the major surge in fraud that has occurred in unemployment programs nationwide, legislation aimed at preventing and detecting fraud is warranted and timely,” said Crapo.  “This bill will prevent fraud in COVID unemployment programs, recover fraudulently paid benefits, and provide relief for taxpayers and victims of unemployment fraud.”

“This may be the biggest government fraud perpetrated on the federal government,” said Brady.  “Fraudsters and criminals have stolen up to $200 billion from taxpayers while Democrats turn a blind eye and refuse to have even a single oversight hearing.  Congress has a responsibility to protect American families and small businesses.”

The Combatting COVID Unemployment Fraud Act of 2021:

·         Prevents fraud on the front end.  Requires verification of identity, earnings, and prior employment of applicants prior to authorizing benefits and allows States to claim reimbursement for administrative expenses to improve identity verification.

·         Supports claw back of fraudulently paid dollars.  Establishes the joint COVID Unemployment Fraud Taskforce and incentivizes States to go after fraud by allowing them to retain 5 percent of recovered funds.

·         Provides relief to victims of unemployment fraud and identity theft.  The bill implements protections for taxpayers and victims of unemployment fraud.

Crapo and Brady also sent a letter to the U.S. Department of Labor Secretary earlier this month, urging the Department to implement targeted, timely investments to stop fraud now.

Bill text can be found here.

Click here for a one-page summary.

Click here for a section-by-section summary.

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