House passes Republican bill to gut unemployment insurance fraud prevention efforts

The U.S. House voted 230-200 on Thursday to pass legislation styled by Republicans as the Protecting Taxpayers and Victims of Unemployment Fraud Act, and derided by Democrats as either the Surprise Billing Our Workers Act or the George Anthony Devolder Santos Fraudster Protection Act.

The legislation would cut federal investments in fighting fraud in unemployment insurance programs by $2 billion, and would allow states to target Americans for up to 10 years after an accidental overpayment occurred.

“UI programs passed by congressional Democrats during the pandemic helped stave off a deeper economic crisis and financial instability for millions of American workers. Now, House Republicans attempt to jeopardize the economic security of our workforce while stripping crucial anti-fraud protections from these programs,” Fourth District Congresswoman Jennifer McClellan said.

“The Surprise Billing Our Workers Act would leave UI programs vulnerable, undercut public service jobs in favor of a privatized workforce, and make the lives of everyday Americans more difficult. I voted against this legislation, because hardworking Virginians deserve better,” McClellan said.

Eighth District Congressman Don Beyer also voted against the legislation, saying Republicans were replacing ongoing efforts at the Department of Labor to improve fraud detection and prevention “with a bizarre set of incentives for states to go after ordinary workers who were overpaid through no fault of their own.”

“DOL assistance facilitated by the Rescue Plan has already had a noticeable impact in my state of Virginia. Following guidance from the department, the Virginia Employment Commission was able to make a significant dent in the UI appeals backlog that has plagued the state UI system for years,” Beyer said.

“It astonishes me that my friends from the other side of the aisle are advocating for a bill that would prevent the DOL from doing this type of work,” Beyer said. “There’s no question that the UI system needs improvement, but this bill would make the system more vulnerable to fraud, less responsive, and expose American workers to surprise bills and litigation.”

The legislation was co-sponsored by New York Republican George Santos, a day after the freshman congressman was indicted by a federal grand jury on 13 criminal counts, including allegedly fraudulently applying for and receiving unemployment benefits when he had a job working as a regional director of an investment firm that paid him a $120,000 annual salary.

It was Massachusetts Democrat Jim McGovern who suggested renaming the bill the George Anthony Devolder Santos Fraudster Protection Act.

“They ignore billionaires who pay no taxes, but they want us to believe there’s an unemployment insurance crime spree, while at the same time a sitting member of the House Republican Conference was indicted in federal court this morning for unemployment fraud,” McGovern said.