COVID-19 unemployment fraud now estimated at $135 billion.
COVID-19 Unemployment Fraud Reaches Staggering $100 Billion to $135 Billion
A recent report from the Government Accountability Office (GAO) reveals that COVID-19-related unemployment fraud has skyrocketed to an estimated $100 billion to $135 billion. This shocking figure is double the previous estimates provided in testimony earlier this year to both the House Ways and Means Committee and the Senate Finance Committee.
“I am extremely alarmed by these findings and even more convinced that immediate action is needed to recover as much taxpayer dollars as possible,”
– Ways and Means Committee Chairman Jason Smith (R-MO)
Chairman Smith emphasizes the urgency of the situation, stating that unemployment fraud not only harms hardworking Americans who deserve assistance but also benefits criminals. The need to retrieve these funds and support law-abiding citizens is paramount.
The GAO report was commissioned by leaders from both congressional committees to shed light on the extent of fraud and abuse involving COVID-19 relief funds. The report estimates that fraudulent payments accounted for 11% to 15% of the total unemployment insurance benefits distributed between April 2020 and May 2023. However, the full scope of the fraud may never be fully known.
“These shocking estimates continue to grow, and, as GAO notes, we may never know the full scope and scale of fraudulent pandemic payments,”
– Sen. Mike Crapo (R-ID)
Senator Crapo expresses concern over the expanding estimates and the administration’s insufficient efforts to address the massive amount of fraud in the unemployment insurance program.
In response to this alarming situation, the House passed H.R. 1163, the Protecting Taxpayer and Victims of Unemployment Act, in May. This bipartisan bill aims to incentivize states to recover fraudulent unemployment payments, extend the statute of limitations for prosecuting fraud from five years to ten, and enhance program integrity by allowing states to retain up to 5% of recovered over-payments for future system abuse prevention.
Senator Crapo introduced a companion bill in his committee to further support the recovery of stolen funds and prevent similar large-scale theft in the future.
“The fraud detailed in this report represents the greatest theft of taxpayer dollars in American history, and underscores the dire need for Senate Democrats to take immediate action,”
- Chairman Jason Smith
The findings of this report highlight the urgent need for Senate Democrats to address this unprecedented theft of taxpayer dollars and take swift action.
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