Recovering Fraudulent Pandemic Unemployment Benefits
This act aims to recover billions of dollars in fraudulent unemployment benefits paid during the COVID-19 pandemic. It incentivizes states to reclaim these funds by allowing them to retain a portion of the recovered money for system modernization and fraud prevention. This protects taxpayer money and improves the unemployment benefits system.
Key points
States can keep 25% of recovered fraudulent pandemic unemployment funds for system modernization, hiring investigators, and other anti-fraud efforts.
The period for states to recover improperly paid benefits is extended from 3 to 5 years.
States are required to use data verification systems, like the National Directory of New Hires, to detect fraud and improper payments.
The Secretary of Labor is prohibited from issuing blanket waivers for recovering pandemic unemployment overpayments.
States can temporarily adjust staffing rules until the end of 2023 to combat fraud.
Status:
Expired
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