U.S. Rep. Lloyd Smucker (R-PA) and U.S. Sen. James Lankford (R-OK) are urging the Trump administration to address issues that have negatively impacted the unemployment insurance (UI) system.
The lawmakers are calling for several changes to the system. Among them, they would like to see an end to the “pay and chase” model, a reevaluation of federal funding formulas that support state UI administration, and greater transparency in the Biden administration’s handling of nearly $1 billion in UI modernization grants.
Further, the Congress members stress the need for urgent congressional action to extend the statute of limitations for recovering fraudulent pandemic UI payments. The theft of taxpayer dollars from these UI programs is estimated by the Government Accountability Office to total between $100 billion and $135 billion.
“We write to address the pressing issues facing our nation’s unemployment insurance (UI) system,” the lawmakers wrote in a letter to the Labor Secretary Lori Chavez-DeRemer. “Under the leadership of former Acting Secretary Su, waste, fraud, and a consistent lack of transparency defined the unemployment compensation system. The pandemic exposed many weaknesses in our nation’s UI system, and it will take a strong partnership between Congress and the Trump Administration to prepare state UI offices for present and future challenges. Despite increased attention, fraudulent and improper payment rates have continued to persist well above pre-pandemic levels.”
Reps. Jodey Arrington (R-TX) and Aaron Bean (R-FL) also signed the letter, along with Smucker and Lankford.
The letter emphasizes the need for a partnership between Congress and the Trump administration to reverse “the damage caused by the prior administration by encouraging states to build strong UI systems that verify identities, deliver benefits quickly, and return claimants to meaningful work.”