WASHINGTON, DC – Area Congressman Lloyd Smucker has introduced legislation to strengthen safeguards against fraud in the unemployment insurance system. Smucker said bad actors stole over $100 billion in pandemic-era unemployment benefits, and recent discoveries in Minnesota illustrate that vulnerabilities in the unemployment system continue to persist. His “Stop Unemployment Fraud Act” would strengthen identity verification requirements for unemployment claimants; require states to cross-check claims using fraud detection systems to prevent duplicate or improper payments; end the “pay and chase” model by ensuring benefits are not issued before eligibility is verified; and strengthen work-search requirements and federal oversight of state compliance. It would also allow states to retain a portion of recovered overpayments to invest in fraud prevention and program administration. The measure has garnered support from the National Taxpayers Union, Americans for Tax Reform, U.S. Chamber of Commerce, and the National Federation of Independent Business.
REP. LLOYD SMUCKER