Unemployment insurance fraud addressed under bipartisan Tillis bill

U.S. Sen. Thom Tillis (R-NC) recently joined a bipartisan contingent of lawmakers in proposing legislation that would make changes to the nation’s unemployment insurance system in efforts to help fight fraud and improve access to benefits.

“COVID-19 exposed vulnerabilities in our unemployment insurance system that must be addressed,” Sen. Tillis said on July 18. “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.” 

Sen. Tillis on July 10 cosponsored the Unemployment Insurance Integrity and Accessibility Act, S. 4663, alongside bill sponsor U.S. Sen. Ron Wyden (D-OR) and 10 other original cosponsors, including U.S. Sen. Todd Young (R-IN).

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 Sen. Tillis’ staff. 

If enacted, S. 4663 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 also would 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 bill is under consideration by the U.S. Senate Finance Committee.