[Congressional Record Volume 172, Number 108 (Monday, June 29, 2026)]
[House]
[Pages H4269-H4272]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RECOVER COVID UNEMPLOYMENT FRAUD IN BANKS ACT
Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 8873) to recover unclaimed pandemic-era
unemployment compensation funds held by financial institutions or
escheated to State unclaimed property administrators, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 8873
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Recover COVID Unemployment
Fraud in Banks Act''.
SEC. 2. NATIONAL RECOVERY COORDINATOR AND TASK FORCE.
(a) In General.--
(1) Designation of national recovery coordinator.--The
Secretary of Labor, in consultation with the Secretary of the
Treasury, the Inspector General of the Department of Labor,
and the Attorney General, shall designate an official to
serve as National Recovery Coordinator to oversee and
coordinate the activities and responsibilities of the task
force described in paragraph (2).
(2) Task force establishment.--Not later than 30 days after
the date of enactment of this Act, the National Recovery
Coordinator shall convene a task force to be named the
``Recover Pandemic Unemployment Funds in Banks Task Force''
(in this section, the ``Task Force'').
(3) Members.--The Task Force shall include--
(A) the Attorney General, or their designee;
(B) the Secretary of Labor, or their designee;
(C) the Inspector General of the Department of Labor, or
their designee;
(D) the Secretary of the Treasury, or their designee;
(E) the Chairman of the Federal Deposit Insurance
Corporation, or their designee; and
(F) the Director of the Consumer Financial Protection
Bureau, or their designee.
(b) Task Force Responsibilities.--It shall be the
responsibility of the Task Force to--
(1) coordinate with applicable State agencies to identify
Federal pandemic unemployment compensation payments issued on
prepaid debit cards that--
(A) are held by financial institutions, and other entities
identified by the Inspector General of the Department of
Labor, contracted by a State agency to transfer such payments
to unemployment claimants; or
(B) were transferred by such an entity to, and are
currently held by, a State agency responsible for unclaimed
property;
(2) coordinate with appropriate Federal agencies to develop
model processes which comply with relevant Federal and State
laws and result in cost-effective recovery of the payments
identified under paragraph (1), including issuing guidance,
in coordination with the Secretary of Labor, to
administrators of State agencies responsible for
administering Federal unemployment compensation payments or
determining fraud in such programs, including--
(A) guidelines for--
(i) reviewing such payments and determining if such a
payment was an improper payment;
(ii) determining whether cost-effective recovery of an
improper payment is possible, including a threshold, or a
methodology for calculating a dollar threshold, for cost-
effective recovery; and
(iii) actions, consistent with State law, to be taken by
the State agency if an improper payment is determined to be
the result of fraud;
(B) assurances that, subject to section 303(g) of the
Social Security Act (42 U.S.C. 503(g)), any action taken in
relation to a determination that a payment identified under
paragraph (1) is an improper payment shall be taken under
State law;
(C) a model notice and information, developed in
coordination with the Consumer Financial Protection Bureau,
about resources available to individuals whose identity
information is determined to have been fraudulently used to
obtain Federal pandemic unemployment compensation;
(D) information on the legal pathways described under
paragraphs (3) and (4) for recovery of payments that are
improper payments held by financial institutions and agencies
described in paragraph (1); and
(E) procedural requirements for State agencies to follow
when funds are returned by such institutions that provides a
standardized methodology to return funds to the Federal
Government;
(3) issue guidance, in coordination with the Comptroller of
the Currency and Chairman of the Federal Deposit Insurance
Corporation, to financial institutions described in paragraph
(1) that are holding payments that are improper payments that
provides information on a legal pathway, consistent with
banking regulations and applicable contracts with State
agencies, for returning such payments to the appropriate
State agency; and
(4) issue guidance, in coordination with the Secretary of
Treasury, to administrators of State agencies responsible for
unclaimed property on the obligations of such agencies to
review and return payments described in paragraph (1)(B) to
the appropriate State agency.
(c) Consultation Requirement.--In developing the guidance
required to be issued under paragraphs (2), (3), and (4) of
subsection (b), the Task Force shall consult with State
agencies and incorporate best practices from previous
attempts by any such States to recover payments determined to
be improper payments from institutions described in paragraph
(1)(A) of such subsection.
(d) State Administrative Costs.--The Secretary of Labor
shall reimburse States for all administrative costs incurred
as a result of coordination with the Task Force by reason of
an agreement under section 2102, 2104, or 2107 of the CARES
Act (15 U.S.C. 9201; 9203; 9205).
(e) Definitions.--Except as otherwise specified, in this
section:
(1) Federal pandemic unemployment compensation.--The term
``Federal pandemic unemployment compensation'' means a
payment of--
(A) pandemic unemployment assistance under section 2102(b)
of the CARES Act (15 U.S.C. 9021(b));
(B) Federal Pandemic Unemployment Compensation and Mixed
Earner Unemployment Compensation under section 2104(b)(1) of
the CARES Act (15 U.S.C. 9023(b)(1)); and
(C) pandemic emergency unemployment compensation under
section 2107(a)(2) of the CARES Act (15 U.S.C. 9025(a)(2)).
(2) Improper payment.--The term ``improper payment'' means
any amount of a pandemic unemployment payment to which the
individual is not entitled.
(3) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 3. EXTENSION OF THE STATUTE OF LIMITATIONS FOR PANDEMIC
UNEMPLOYMENT FRAUD BY INDIVIDUALS UNDER CERTAIN
UNEMPLOYMENT PROGRAMS.
(a) Pandemic Unemployment Assistance.--Section 2102 of the
CARES Act (15 U.S.C. 9021) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
``(h) Statute of Limitations.--
``(1) In general.--Notwithstanding any other provision of
law and subject to paragraph (2), any criminal prosecution or
civil enforcement action for a violation of, or conspiracy to
violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United
[[Page H4270]]
States Code, with respect to any unemployment compensation
claim funded in whole or in part by pandemic unemployment
assistance under this section shall be brought not later than
10 years after the date of the violation or conspiracy.
``(2) Exception.--Paragraph (1) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.''.
(b) Federal Pandemic Unemployment Compensation and Mixed
Earner Unemployment Compensation.--Section 2104(f) of the
CARES Act (15 U.S.C. 9023(f)) is amended by adding at the end
the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other provision of
law and subject to subparagraph (B), any criminal prosecution
or civil enforcement action for a violation of, or conspiracy
to violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any unemployment compensation claim funded in
whole or in part by Federal Pandemic Unemployment
Compensation or Mixed Earner Unemployment Compensation under
this section shall be brought not later than 10 years after
the date of the violation or conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.''.
(c) Pandemic Emergency Unemployment Compensation.--Section
2107(e) of the CARES Act (15 U.S.C. 9025(e)) is amended by
adding at the end the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other provision of
law and subject to subparagraph (B), any criminal prosecution
or civil enforcement action for a violation of, or conspiracy
to violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any unemployment compensation claim funded in
whole or in part by Pandemic Emergency Unemployment
Compensation under this section shall be brought not later
than 10 years after the date of the violation or conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.''.
(d) Effective Date.--The amendments made by section Act
shall take effect on the date of enactment of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentleman from New York (Mr. Suozzi) each
will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and submit extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of the Recover COVID Unemployment
Fraud in Banks Act led by my Ways and Means colleagues Representative
Beth Van Duyne and Representative Tom Suozzi.
As the lead sponsor of this legislation, Representative Van Duyne has
been shining a spotlight on the fraud epidemic, even from her earliest
days serving on the Ways and Means Committee.
Unemployment insurance benefits are a target-rich environment for
fraudsters.
According to the Government Accountability Office, between $100
billion to $135 billion in COVID-era unemployment benefits are
estimated to have been taken by fraudsters using eligibility loopholes
and stolen identities.
Of that money, a Department of Labor Inspector General investigation
found that nearly $1 billion of fraudulent COVID-era unemployment
benefits is currently frozen and being held in financial institutions
across the country. At one financial institution, the highest balance
on a single card is $76,000. At a second financial institution, it is
$56,000.
The statute of limitations for prosecuting COVID-era unemployment
insurance fraud has already begun to expire, limiting the amount of
money law enforcement can return or the number of criminals that they
can bring to justice. Time is of the essence to recover the money
stolen and rightfully owed to taxpayers.
This bipartisan bill establishes a new Federal task force to work
with States to return the fraudulent unemployment benefits sitting in
banks to American taxpayers.
The task force will develop model processes and guidance necessary
for States to reclaim funds in a cost-efficient way, issue guidance to
financial institutions on the legal path for returning funds, and
establish due process protections for claimants whose identity was
stolen as part of the crime.
Additionally, the bill doubles the statute of limitations for COVID-
era unemployment insurance fraud prosecution from 5 to 10 years. As of
last year, the Department of Labor reported more than 150,000 open
complaints, and the Department of Justice had more than 1,648 open
investigations regarding pandemic unemployment fraud. Prosecutors need
more time to hold criminals accountable.
Every day Congress waits to pass this bill is another day that
another fraudster will get away with stealing money that rightfully
belongs to taxpayers and individuals in need.
The Recover COVID Unemployment Fraud in Banks Act passed 41-0 out of
the Ways and Means Committee. This bill has also received the
endorsement from the National Association of State Workforce Agencies,
the Taxpayers Protection Alliance, and the Strategic Services on
Unemployment and Workers' Compensation.
Mr. Speaker, I urge my colleagues to provide a similar level of
support and advance this to the Senate and President Trump's desk.
Mr. Speaker, I reserve the balance of my time.
Mr. SUOZZI. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 8873, the Recover COVID
Unemployment Fraud in Banks Act.
I thank Chairman Smith, and I want to especially thank my colleague
Representative Van Duyne for sponsoring this bipartisan, commonsense
bill that will help root out fraud, protect vulnerable Americans, and
help return stolen funds to the States who were robbed.
We have to remember that COVID was a really terrifying period for our
country. Everyone was vulnerable, and hardworking Americans lost their
jobs, homes, and loved ones overnight.
Many struggling families were forced to rely on unemployment
assistance to make ends meet. Twenty-two million workers lost their
jobs, and about a quarter of all U.S. workers received unemployment
benefits.
As a result, States issued billions in unemployment benefits, some of
it on prepaid debit cards through contracts with banks. These benefits
were meant to help families afford their basic needs during the
lockdown. These benefits kept more than 5 million people out of poverty
as they faced the threat of mortgage defaults, utility shutoffs, and
hunger.
Unfortunately, while people were isolated and overwhelmed and
desperate for reliable information, criminals and fraudsters exploited
those vulnerabilities and attacked unsuspecting Americans. In fact,
domestic and international cybercrime rings weaponized stolen
identities. That is, they stole people's identities. They used
loopholes to actually apply for unemployment insurance using the fake
identities that they had stolen, and they applied for this Federal
pandemic aid.
Right now, as I speak to you, some of the stolen money is still
sitting untouched in debit cards. Even worse, investigators estimate
that the majority of fraudulent debit cards are as a result of identity
theft, and many of the victims have no idea that they were even
targeted. These are working families and senior citizens.
Cybercriminals have figured out how to take complete advantage of our
system. Most importantly, they wait to withdraw the funds from these
debit cards until the statute of limitations expires on each case and,
therefore, avoid the legal consequences for stealing.
According to the Financial Crimes Enforcement Network, FinCEN, in
2021,
[[Page H4271]]
banks experienced $212 billion in suspicious activity related to
identity. That number increased to $394 billion in transactions in
2023.
The statute of limitations for prosecuting many of these pandemic
crimes is 5 years, meaning that consequences began expiring for some of
these criminals in March of 2025. This has already resulted in the loss
of hundreds of millions of dollars of taxpayer funds. We have to act
now, before we lose these millions of dollars.
Congress has to be united in going after fraud and protecting
Americans from illegal scams and identity theft. We have an opportunity
to take that action today by supporting H.R. 8873, Recover COVID
Unemployment Fraud in Banks Act.
This bill would extend the statute of limitations for the remaining
cases, where it hasn't already expired, and create a task force to
support recovery of those funds identified by the inspector general
that can be recovered cost-effectively, without diverting time or money
from future fraud protection.
Every time a debit card that was issued using a stolen identity is
detected, in addition to recovering the money, this bill ensures that
the victim of the theft is notified and provided with resources.
This is critically important because, if the criminal has used the
victim's identity to apply for pandemic unemployment insurance, chances
are that that criminal is going to use that stolen identity to commit
other crimes as well.
By extending the statute of limitations, this bill would allow the
Office of the Inspector General to complete at least 300 current
investigations into large-scale unemployment insurance fraud and
potentially recover those funds for the taxpayer.
By supporting this bill, Congress can help States focus their energy
on the most cost-effective prevention and recovery efforts. Money
recovered by the States will help ensure that State unemployment
insurance systems are able to prevent fraud and pay earned benefits on
time and accurately to unemployed Americans in the future.
{time} 1440
This is especially important right now. Gas prices are too high.
Grocery prices are too high. Healthcare prices are too high, and too
many Americans live in fear of losing their jobs and being unable to
afford their families' basic needs.
We have a responsibility to eradicate fraud, hold fraudsters
accountable, and keep Americans and their identities safe from harm
online.
Mr. Speaker, I once again thank Representative Van Duyne for
sponsoring this commonsense bill, and I urge all Members to support
this legislation. I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield such time as she may
consume to the gentlewoman from Texas (Ms. Van Duyne).
Ms. VAN DUYNE. Mr. Speaker, I rise today in support of H.R. 8873, the
Recover COVID Unemployment Fraud in Banks Act, which I was proud to
introduce with the gentleman from New York (Mr. Suozzi), my bipartisan
partner.
This commonsense legislation creates a Federal task force to work
with States to recover unspent Federal pandemic unemployment funds that
remain frozen in financial institutions and return those taxpayer
dollars to the U.S. Treasury, but Congress must act quickly.
Last December, the Department of Labor's Office of Inspector General
issued two fraud alerts identifying nearly $1 billion in unspent
Federal unemployment funds frozen by banks because of suspected fraud.
Those funds are now sitting on millions of prepaid debit cards that
States used to distribute supplemental unemployment benefits during the
pandemic.
More than 6 years later, many of these accounts have simply been
forgotten. They remain unreconciled by State workforce agencies and, in
many cases, have even been transferred to State unclaimed property
divisions, making recovery even that much more difficult. Without
congressional action, hundreds of millions of taxpayer dollars could be
lost permanently.
The Committee on Ways and Means has made combating pandemic
unemployment fraud a top priority. Earlier this year, the Subcommittee
on Work and Welfare held a hearing that examined the scope of this
problem and the consequences of failing to act.
During that hearing, the Department of Labor Inspector General
testified that the fraud alerts covered prepaid debit card accounts
across 21 States and that more than $200 million in suspected
fraudulent funds have already been transferred into State unclaimed
property programs.
H.R. 8873 addresses this problem by establishing a Federal task
force, led by a national recovery coordinator, to partner with States
in identifying, recovering, and returning those Federal unemployment
dollars to taxpayers.
The bill also extends the statute of limitations for prosecuting
pandemic unemployment fraud from 5 years to 10 years. This provision
mirrors H.R. 1156, the Pandemic Unemployment Fraud Enforcement Act,
which passed the House last year with bipartisan support.
Federal investigators are still actively pursuing hundreds of
pandemic fraud cases. Since October 2025 alone, the Department of Labor
Inspector General has brought 59 criminal matters to prosecution,
resulting in charges against 131 individuals and more than $16 million
in recoveries. Extending the statute of limitations ensures prosecutors
have the time they need to hold fraudsters accountable.
This legislation has earned bipartisan support from the National
Association of State Workforce Agencies, the U.S. Chamber of Commerce,
the Taxpayers Protection Alliance, and Strategic Services on
Unemployment & Workers' Compensation.
Every dollar stolen through fraud is a dollar that cannot serve
hardworking Americans or reduce our Nation's debt. It is not too late
to recover these taxpayer funds, and it is not too late to hold
criminals accountable. H.R. 8873 gives us the tools to do both.
Mr. Speaker, I urge my colleagues to support this bipartisan
legislation.
Mr. SUOZZI. Mr. Speaker, I have no further speakers, and I am
prepared to close.
Mr. Speaker, I yield myself the balance of my time.
H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act, is a
commonsense bill that helps eliminate waste, fraud, and abuse; recovers
stolen taxpayer dollars; and protects some of our most vulnerable
citizens, including older Americans.
At a time when too many families face the uncertainty of
unemployment, high gas and grocery prices, and seniors are forced to
choose between food, rent, and healthcare, we can't allow fraudsters to
get away with stealing funds meant to help hardworking families.
We have a responsibility to root out fraud, hold bad actors
accountable, and protect Americans and their identities from being
exploited ever again.
I again thank the gentlewoman from Texas (Ms. Van Duyne), my
colleague, for working in a bipartisan and collaborative fashion on
this commonsense legislation. I urge my colleagues to support this
bipartisan bill.
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, I am glad the Committee on Ways and Means was able to
come together in bipartisan unity and bring this important piece of
legislation to the floor.
The American people expect Congress to root out the fraud in the
critical social safety net so many rely on, including unemployment
insurance.
To date, only $6 billion of stolen UI benefits have been recovered.
It is shameful that these benefits were stolen from vulnerable
Americans in the first place. It will be equally shameful if Congress
doesn't pass the bipartisan bill, recover the fraudulent unemployment
benefits we know are sitting in banks, and prosecute more fraudsters.
I thank all of my colleagues, but especially the leaders of this
bill, Representatives Van Duyne and Suozzi, for their leadership in
fighting fraud.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Smith) that the House suspend the rules
and pass the bill, H.R. 8873, as amended.
[[Page H4272]]
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________