Rep. Lloyd Smucker
U.S. Rep. Lloyd Smucker (R-PA), vice chair of the Budget Committee, sponsored legislation to strengthen safeguards against fraud in the unemployment insurance system and help states recover stolen funds.
The congressman introduced the Stop Unemployment Fraud Act, H.R. 7847, on March 5 along with 15 Republican original cosponsors.
The legislation would strengthen identity verification requirements for unemployment claimants, require states to cross-check claims using fraud detection systems to prevent duplicate or improper payments, and end the “pay and chase” model by ensuring benefits are verified before being issued.
The bill would also strengthen work-search requirements, improve federal oversight of state compliance, and allow states to retain a portion of recovered overpayments to invest in fraud prevention.
“Bad actors stole more than $100 billion in pandemic-era unemployment benefits, and recent discoveries in Minnesota illustrate that vulnerabilities in the unemployment system continue to persist,” Rep. Smucker said. “The Stop Unemployment Fraud Act will help states recover stolen funds and strengthen safeguards to ensure the long-term integrity of this program.”
The bill drew support from a broad coalition of outside groups, including the National Taxpayers Union, Americans for Tax Reform, the U.S. Chamber of Commerce, the America First Policy Institute, the Taxpayer Protection Alliance, and the National Federation of Independent Business.
“This bill offers a common-sense approach to confront waste, fraud, and abuse in the UI system,” said David Williams, president of the Taxpayer Protection Alliance. “Taxpayers should not have to foot the bill for the fiscal malpractice of federal and state regulators.”