Senate Finance Committee Republicans have introduced a bill they said is designed to prevent COVID-19 unemployment program fraud while also recovering fraudulently paid benefits.
Lawmakers said the Combatting COVID Unemployment Fraud Act of 2021 would also provide taxpayer relief.
“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 Sen. Mike Crapo (R-ID), the Senate Finance Committee’s chief Republican member.
The legislation prevents fraud on the front end; supports efforts to recover fraudulently paid funds by establishing the joint COVID Unemployment Fraud Taskforce – enabling state’s to retain 5 percent of recovered funds; and
implements protections for taxpayers and victims of unemployment fraud.
A companion bill was introduced in the House of Representatives by Ways and Means Ranking Member Kevin Brady (R-TX).
“This may be the biggest government fraud perpetrated on the federal government,” Brady said. “Fraudsters and criminals have stolen up to $200 billion from taxpayers. Congress has a responsibility to protect American families and small businesses.”
Crapo and Brady previously forwarded correspondence to Department of Labor Secretary Marty Walsh to encourage the implementation of targeted investments to stop fraud.