A dozen U.S. senators from both sides of the aisle recently proposed legislation that would make several improvements to the nation’s unemployment insurance system to combat fraud and improve access to benefits.
Sens. Ron Wyden (D-OR) and Mike Crapo (R-ID), the chairman and ranking member, respectively, of the Senate Finance Committee, on July 10 led the introduction of the Unemployment Insurance Integrity and Accessibility Act, S. 4663.
The 51-page proposed measure includes provisions to reduce program fraud and to establish a process that would address non-fraud, COVID-19 pandemic-related overpayments, according to the text of the bill.
Additionally, S. 4663 would require states to adopt specific online procedures that would ensure workers have a reasonable opportunity to apply for unemployment benefits, the text says.
Sen. Thom Tillis (R-NC), another original cosponsor of the bill, said that COVID-19 exposed vulnerabilities in the nation’s unemployment insurance system that have to be addressed.
“This common-sense legislation protects taxpayer dollars by stopping fraud in our unemployment insurance system while ensuring it is available for those who need it,” Tillis said.
Specifically, S. 4663 would extend the federal statute of limitations for pandemic unemployment insurance fraud from five to 10 years in an effort to give states more time to recoup fraudulent claims, according to a bill summary provided by Tillis’ staff.
“The pandemic caused a spike in unemployment fraud that cannot be ignored,” agreed Sen. Jim Lankford (R-OK), also a bill cosponsor. “We need more time to prosecute criminals and recover stolen funds.”
The bill also would allow states to waive non-fraud overpayments of pandemic unemployment benefits if repayment is “contrary to equity and good conscience” and would require them to do so if no overpayment is established by Dec. 31, 2025, the summary says.
States would also be required to crossmatch unemployment compensation claims against the National Directory of New Hires to prevent claimants from collecting unemployment insurance if they are working and would implement new access and technology requirements for online claim filing systems and in-person alternatives, among other provisions.
The other cosponsors of S. 4663 are U.S. Sens. John Barrasso (R-WY), Jim Risch (R-ID), Todd Young (R-IN), Michael Bennet (D-CO), Sherrod Brown (D-OH), Ben Cardin (D-MD), Gary Peters (D-MI), and Sheldon Whitehouse (D-RI).
The Senate Finance Committee is now reviewing the bill.