Republican-led bill would interfere with efforts to reduce unemployment insurance fraud

Last week the U.S. House considered the Protecting Taxpayers and Victims of Unemployment Fraud Act.

H.R. 1163, “an inaptly titled bill” according to the Center on Budget and Policy Priorities (CBPP), is led by 13 Republican cosponsors and would hamper ongoing efforts to reduce unemployment insurance fraud in the United States.

President Joe Biden signed the American Rescue Plan Act into law in 2021 with $2 billion allocated to the Department of Labor for the detection and prevention of fraud. H.R. 1163 would repeal the funding and end efforts now and in the future to improve unemployment insurance (UI) integrity.

Virginia Congresswoman Jennifer McClellan voted against the legislation last week to protect the financial well-being of hardworking Americans and families after years of economic turmoil created by the COVID-19 pandemic.

“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,” 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.”

The legislation would send surprise bills to workers who received accidental overpayments through no fault of their own and allow states to target hardworking Americans for up to 10 years after an overpayment. If passed into law, the legislation would also cut federal investments in fighting fraud by $400 million in the next five years, weaken successful anti-fraud programs and let criminals off the hook. The Congressional Budget Office (CBO) estimates that this bill would be a net cut in federal investment in strengthening unemployment insurance (UI) and preventing fraud.

The bill would also undermine state employee unions by allowing states to contract out jobs, despite evidence that temporary use of contractors during the pandemic led to errors and contributed to missed fraud.