U.S. Reps. Mike Crapo (R-ID) and Jason Smith (R-MO) are seeking a U.S. Department of Labor (DOL) detailed accounting regarding how the agency utilized $2 billion to aid in preventing unemployment insurance (UI) fraud.
The legislator forwarded correspondence to Department of Labor Acting Secretary Julie Su regarding the matter, citing while the DOL’s Inspector General has estimated there has been at least $191 billion in misspent pandemic UI funds, the funding allocated to combat fraud and prevent further taxpayer dollars from being misspent lacks critical metrics – possessing vague goals and no timeline for obligating funds.
“We write to express serious concerns about the lack of transparency in how the funds have been spent, including diversion of taxpayer dollars for ‘promoting equity’, and specifically how the Department prioritized use of these critical funds for fraud prevention, identification, and recovery,” the legislators wrote. “More than two years have passed, and, to date, the Department has yet to provide adequate explanation as to how this money has been used or any results of the Department’s efforts to fight fraud.”
The DOL received the funds to help address IU fraud under the American Rescue Plan Act (ARPA).
“Since receiving ARPA funds, the Department has made significant contract and grant announcements without providing details, progress, or implementation updates on state projects funded by ARPA,” the legislators wrote. “Nearly two years later, the Department has yet to provide a satisfactory explanation as to how this money has been spent and the progress of the projects being funded.”
Within the letter the lawmakers have requested the DOL provide responses to a series of inquiries focused on detailed accounting of the funds allocated to help address UI fraud.