[House Report 117-521]
[From the U.S. Government Publishing Office]


117th Congress    }                                    {     Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {     117-521

======================================================================
 
 RESOLUTION OF INQUIRY DIRECTING THE SECRETARY OF LABOR TO PROVIDE TO 
   THE HOUSE OF REPRESENTATIVES CERTAIN DOCUMENTS IN THE SECRETARY'S 
POSSESSION RELATING TO UNEMPLOYMENT INSURANCE FRAUD DURING THE COVID-19 
                                PANDEMIC

                                _______
                                

 September 28, 2022.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Mr. Neal, from the Committee on Ways and Means, submitted the following

                             ADVERSE REPORT

                             together with

                            DISSENTING VIEWS

                      [To accompany H. Res. 1288]

    The Committee on Ways and Means, to whom was referred the 
resolution (H. Res. 1288) of inquiry directing the Secretary of 
Labor to provide to the House of Representatives certain 
documents in the Secretary's possession relating to 
Unemployment Insurance fraud during the COVID-19 pandemic, 
having considered the same, report unfavorably thereon without 
amendment and recommend that the resolution not be agreed to.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
 II. EXPLANATION OF THE BILL..........................................3
III. VOTES OF THE COMMITTEE...........................................3
 IV. BUDGET EFFECTS OF THE BILL.......................................4
          A. Committee Estimate of Budgetary Effects.............     4
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     4
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     4
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......4
          A. Committee Oversight Findings and Recommendations....     4
          B. Statement of General Performance Goals and 
              Objectives.........................................     4
          C. Information Relating to Unfunded Mandates...........     5
          D. Advisory Committee Statement........................     5
          E. Applicability to Legislative Branch.................     5
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     5
          G. Hearings............................................     5
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............5
VII. DISSENTING VIEWS.................................................6

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H. Res. 1288 requests that the Secretary of Labor provide 
to the House of Representatives certain documents in the 
Secretary's possession relating to Unemployment Insurance (UI) 
fraud during the COVID-19 pandemic.

                 B. Background and Need for Legislation

    H. Res. 1288 was introduced by Representative Jackie 
Walorski on July 26, 2022. H. Res. 1288 is a resolution of 
inquiry which is a means used by the House to obtain certain 
factual information from the Executive Branch. Under clause 7 
of rule XIII, a resolution of inquiry is subject to a motion to 
discharge from committee if the resolution is not reported by 
the committee to which it was referred within 14 legislative 
days of its introduction. Accordingly, the Committee on Ways 
and Means scheduled a markup of H. Res. 1288 within the 14-day 
period.
    The Committee reported the resolution adversely because it 
would not advance ongoing successful efforts by the Department 
of Labor, the Office of the Inspector General, and the 
Department of Justice to recover fraudulent payments. This 
resolution would also divert resources away from efforts to 
prevent future fraud by forcing a search for documents that may 
not have been preserved by the prior administration, are held 
solely by law enforcement agencies or state agencies, or are 
part of ongoing criminal investigations.
    The vast majority of the emergency unemployment benefits 
that Congress provided during the pandemic went to American 
workers, keeping 5 million Americans out of poverty,\1\ 
stabilizing demand,\2\ increasing GDP,\3\ and supporting the 
fastest jobs recovery in 40 years.\4\ However, a combination of 
antiquated technology and inadequate staffing in state 
unemployment offices,\5\ huge need for unemployment 
benefits,\6\ and slow and sometimes shifting guidance from the 
Trump Administration Department of Labor (DOL)\7\ created an 
opportunity for criminal rings to file false worker claims and 
steal benefits.
---------------------------------------------------------------------------
    \1\Frances Chen & Em Shrider, Did Unemployment Insurance Lower 
Official Poverty Rates in 2020?, U.S. Census Bureau (Sept. 14, 2021), 
https://www.census.gov/library/stories/2021/09/did-unemployment-
insurance-lower-official-poverty-rates-in-2020.html.
    \2\Consumption Effects of Unemployment Insurance during the Covid-
19 Pandemic, JPMorgan Chase & Co. (July 2020), https://
www.jpmorganchase.com/institute/research/labor-markets/unemployment-
insurance-covid19-pandemic.
    \3\The Effects of Pandemic-Related Legislation on Output, Cong. 
Budget Office (Sept. 2020), https://www.cbo.gov/publication/56597.
    \4\Caleb Silver, The U.S. Labor Market Recovery in Charts, 
Investopedia (Sept. 2022), https://www.investopedia.com/the-u-s-labor-
market-recovery-in-charts-6541384.
    \5\U.S. Gov't. Accountability Off., GAO-22-105162, Unemployment 
Insurance: Transformation Needed to Address Program Design, 
Infrastructure, and Integrity Risks (June 7, 2022).
    \6\Employment & Training Admin., Unemployment Insurance Data, U.S. 
Dept. of Labor, https://oui.doleta.gov/unemploy/DataDashboard.asp 
(select ``Benefits and Claims'' then select ``UI Weekly Continued 
Claims--All Programs'' to download data) (last visited Sept. 22, 2022).
    \7\Robert Asaro-Angelo et al., NASWA Letter on Pandemic UI 
Requests, Nat'l Ass'n of State Workforce Agencies (Jan. 7, 2022), 
https://www.naswa.org/government-relations/congressional-testimony/
naswa-letter-on-pandemic-ui-requests.
---------------------------------------------------------------------------
    Using the $2 billion the Ways and Means Committee added to 
the American Rescue Plan Act (ARPA),\8\ the Biden 
Administration DOL has worked with states, the Department of 
Justice, and the Office of the Inspector General\9\ to identify 
and prosecute fraudsters. The joint efforts have recovered over 
$700 million in fraudulent payments,\10\ with more to come from 
ongoing investigations and prosecutions. DOL has also used ARPA 
funds to invest in state systems that promote equity and access 
but prevent fraud.\11\
---------------------------------------------------------------------------
    \8\H.R. Rep. No. 117-7, at 562-613 (2021), https://
www.congress.gov/117/crpt/hrpt7/CRPT-117hrpt7.pdf.
    \9\National Unemployment Insurance Fraud Task Force, U.S. Dep't of 
Justice, https://www.justice.gov/coronavirus/national-unemployment-
insurance-fraud-task-force (last visited Sept. 22, 2022).
    \10\FY 2023 Budget Request for the Department of Labor: Hearing 
Before the Subcomm. on Labor, Health and Human Services, Education, and 
Related Agencies of the H. Comm. on Appropriations, 117th Cong. (2022) 
(Statement of Marty J. Walsh, Sec. of Labor).
    \11\US Department of Labor Awards $195.7M in Grants to 58 States, 
Territories, District of Columbia to Strengthen Fraud Detection, 
Prevention Efforts, U.S. Dep't of Labor (Sept. 30, 2021), https://
www.dol.gov/newsroom/releases/eta/eta20210930-0; US Department of Labor 
Awards More Than $18M in Grants to Address Disparities in Delivery of 
Unemployment Benefits, Services in 7 States, U.S. Dep't of Labor (June 
10, 2022), https://www.dol.gov/newsroom/releases/eta/eta20220610-0.
---------------------------------------------------------------------------

                         C. Legislative History


Background

    H. Res. 1288 was introduced on July 26, 2022 by Rep. 
Walorski and was referred to the Committee on Ways and Means.

Committee hearings

    The committee held no hearings on H. Res. 1288.

Committee action

    The Committee on Ways and Means marked up H. Res. 1288 on 
September 20, 2022, and ordered the bill reported adversely 
(with a quorum being present) by a vote of 23 yeas and 18 nays.

                      II. EXPLANATION OF THE BILL

    H. Res. 1288 directs the Secretary of Labor to provide to 
the House of Representatives copies of all communications among 
Department officials related to unemployment insurance funds 
provided for pandemic relief flowing to foreign criminals 
during the period beginning March 20, 2020, and ending on 
enactment of the resolution, if such documents are in the 
Secretary's possession.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H. Res. 1288.
    The resolution was ordered reported adversely to the House 
by a roll call vote of 23 yeas and 18 nays. The vote was as 
follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Doggett....................        X   ........  .........  Mr. Brady........  ........        X   .........
Mr. Thompson...................        X   ........  .........  Mr. Buchanan.....  ........        X   .........
Mr. Larson.....................        X   ........  .........  Mr. Smith (NE)...  ........        X   .........
Mr. Blumenauer.................        X   ........  .........  Mr. Kelly........  ........        X   .........
Mr. Kind.......................        X   ........  .........  Mr. Smith (MO)...  ........        X   .........
Mr. Pascrell...................        X   ........  .........  Mr. Rice.........  ........        X   .........
Mr. Davis......................        X   ........  .........  Mr. Schweikert...  ........        X   .........
Ms. Sanchez....................        X   ........  .........  Mr. LaHood.......  ........        X   .........
Mr. Higgins....................        X   ........  .........  Dr. Wenstrup.....  ........        X   .........
Ms. Sewell.....................        X   ........  .........  Mr. Arrington....  ........        X   .........
Ms. DelBene....................        X   ........  .........  Dr. Ferguson.....  ........        X   .........
Ms. Chu........................        X   ........  .........  Mr. Estes........  ........        X   .........
Ms. Moore......................        X   ........  .........  Mr. Smucker......  ........        X   .........
Mr. Kildee.....................        X   ........  .........  Mr. Hern.........  ........        X   .........
Mr. Boyle......................        X   ........  .........  Mrs. Miller......  ........        X   .........
Mr. Beyer......................  ........  ........  .........  Dr. Murphy.......  ........        X   .........
Mr. Evans......................        X   ........  .........  Mr. Kustoff......  ........        X   .........
Mr. Schneider..................        X   ........  .........  .................  ........  ........  .........
Mr. Suozzi.....................        X   ........  .........  .................  ........  ........  .........
Mr. Panetta....................        X   ........  .........  .................  ........  ........  .........
Mrs. Murphy....................        X   ........  .........  .................  ........  ........  .........
Mr. Gomez......................        X   ........  .........  .................  ........  ........  .........
Mr. Horsford...................  ........        X   .........  .................  ........  ........  .........
Ms. Plaskett...................        X   ........  .........  .................  ........  ........  .........
Chairman Neal..................        X   ........  .........  .................  ........  ........  .........
    Totals.....................       23   ........  .........      Totals.......  ........       18   .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives is inapplicable.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
Congressional Budget Office did not provide a cost estimate of 
the resolution.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee made findings and recommendations that are 
reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee advises that the bill 
does not authorize funding, so no statement of general 
performance goals and objectives is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                    D. Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by the bill.

                 E. Applicability to Legislative Branch

    The Committee finds that the bill does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(2) of 
the Congressional Accountability Act.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                              G. Hearings

    In relation to compliance with clause 3(c)(6) of rule XIII 
of the Rules of the House of Representatives, the Committee 
states that no hearings were held on this resolution.

        VI. CHANGES IN EXISTING LAW MADE BY THE BILL AS REPORTED

    In compliance with clause 3(e)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that H. 
Res. 1288 does not make any changes to existing law.

                         VII. DISSENTING VIEWS

    Committee Republicans strongly oppose the Committee's 
action of unfavorably reporting H. Res. 1288, Resolution of 
inquiry directing the Secretary of Labor to provide to the 
House of Representatives certain documents in the Secretary's 
possession relating to Unemployment Insurance Fraud during the 
COVID-19 pandemic.
    Congressional oversight is one of the most important 
responsibilities of the U.S. Congress, and Resolutions of 
Inquiry (ROIs) are one of the methods used by the U.S. House of 
Representatives to obtain information from the executive 
branch. ROIs simply demand that the administration turn over 
basic information to Congress. This information is critical 
because it allows the Congress the ensure the executive 
branch's compliance with congressional intent; evaluate program 
performance; prevent the executive branch's encroachment on the 
legislative branch's powers; assess an agency's ability to 
manage and carry out program objectives; and acquire 
information from the executive branch that can inform 
policymaking.
    Moreover, Congressional Republicans have repeatedly sought 
information from the Administration about the expected and 
actual impact of these policies. Transparency is essential 
because it promotes accountability and provides information for 
the Congress and Americans about what the federal government is 
doing. Despite the Biden Administration stating that President 
Biden would ``bring transparency and truth back to the 
government to share the truth, even when it's hard to hear,'' 
the Administration has ignored the need for congressional 
oversight and completely failed on its promise. The American 
people deserve to know how their government works and we will 
hold the Biden Administration accountable for its disastrous 
policies.
    Since the summer of 2020, repeated alerts from federal law 
enforcement agencies warned of targeted efforts involving 
organized cybercrime, foreign actors, and international crime 
rings using stolen identities of American citizens to obtain 
fraudulent unemployment benefits. The Biden Administration has 
no idea exactly how many tax dollars have been stolen or 
improperly paid. In February 2022, the White House estimated 
that 19 percent of total COVID-19 unemployment insurance (UI) 
payments were lost to fraud--offering a low estimate of over 
$80 billion. By contrast, the U.S. Department of Labor's (DOL) 
estimate puts that number much higher and outside experts say 
the number could be as high as $400 billion. Moreover, the DOL 
has exacerbated the amount of fraud by allowing the use of 
blanket waivers that would let states off the hook for due 
diligence and fact finding for large volumes of suspicious 
unemployment claims potentially involving billions of 
fraudulently obtained taxpayer dollars.
    For nearly two years Republicans have been fighting against 
unchecked unemployment fraud and abuse of taxpayer dollars. For 
example, Republicans have sent letters requesting information 
from the administration, sent letters to Committee Democrats 
requesting an oversight hearing, and introduced multiple pieces 
of legislation to stop the pay and chase model of benefits and 
go after criminal actors. Meanwhile, Democrats refuse to even 
acknowledge the problem and have failed to hold a single 
oversight hearing on this issue.
    To continue our oversight efforts on this issue, this 
resolution asks for communications showing the DOL's knowledge 
of UI dollars flowing to international crime syndicates. Given 
the clear need for oversight on this issue it is disappointing 
that Committee Democrats have blocked the request for this 
information.

                                   Kevin Brady,
                                           Ranking Member.
                                   Brad Wenstrup.

                                  [all]