[House Report 119-6]
[From the U.S. Government Publishing Office]
119th Congress } { REPORT
HOUSE OF REPRESENTATIVEShr
1st Session } { 119-6
======================================================================
PANDEMIC UNEMPLOYMENT FRAUD ENFORCEMENT ACT
_______
February 25, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 1156]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 1156) to amend the CARES Act to extend the statute
of limitations for fraud under certain unemployment programs,
and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 3
C. Legislative History................................. 8
D. Designated Hearing.................................. 8
II. EXPLANATION OF THE BILL..........................................8
III. VOTES OF THE COMMITTEE..........................................10
IV. BUDGET EFFECTS OF THE BILL......................................11
A. Committee Estimate of Budgetary Effects............. 11
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 11
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 11
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......18
A. Committee Oversight Findings and Recommendations.... 18
B. Statement of General Performance Goals and
Objectives......................................... 18
C. Information Relating to Unfunded Mandates........... 18
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 18
E. Duplication of Federal Programs..................... 19
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........19
A. Changes in Existing Law Proposed by the Bill, as
Reported........................................... 19
VII. DISSENTING VIEWS................................................38
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pandemic Unemployment Fraud
Enforcement Act''.
SEC. 2. EXTENSION OF THE STATUTE OF LIMITATIONS FOR 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 3801 of title 31, United 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 Pandemic Unemployment Fraud Enforcement
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
3801 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 Pandemic Unemployment Fraud
Enforcement 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
3801 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 Pandemic Unemployment Fraud
Enforcement Act.''.
SEC. 3. BUDGET OFFSET.
Out of the unobligated balances of amounts made available by section
2118(a) of title II of division A of Public Law 116-136, as added by
section 9032 of Public Law 117-2, $5,000,000 are hereby rescinded.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the date of
enactment of this Act.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 1156, the ``Pandemic Unemployment Fraud
Enforcement Act,'' as ordered reported by the Committee on Ways
and Means on February 12, 2025, establishes a 10-year statute
of limitations for criminal prosecution and civil enforcement
actions related to fraudulent unemployment claims funded by
federal pandemic unemployment programs created in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
(P.L. 116-136). These programs include Pandemic Unemployment
Assistance (PUA), Federal Pandemic Unemployment Compensation
(FPUC), Mixed Earner Unemployment Compensation (MEUC), and
Pandemic Emergency Unemployment Compensation (PEUC). The bill
doubles the statute of limitations, which expires on March 27,
2025, from five to 10 years, allowing federal law enforcement
to continue prosecuting criminals and recover billions in
taxpayer dollars lost to fraud during the COVID-19 pandemic.
There is a need for Congress to act before March 27, 2025, to
ensure prosecution of ongoing cases; otherwise, criminal
liability cannot be reimposed after a statute of limitations
period has lapsed.
B. Background and Need for Legislation
In response to the COVID-19 pandemic, on March 27, 2020,
Congress passed the CARES Act, creating several new temporary,
federally-funded unemployment insurance (UI) programs to
provide expanded unemployment benefits to jobless workers. The
American Rescue Plan Act (ARPA) of 2021 (P.L. 117-2) extended
these programs through September 6, 2021. Temporary programs
included:
PUA: Provided benefits to unemployed gig
workers, freelancers, and other self-employed
individuals not covered by regular state UI programs.
FPUC: Provided an additional $600/week from
March 2020 through July 31, 2020, for UI claimants;
then $300/week from January 2021 through Sept. 4, 2021.
MEUC: Provided benefits to ``mixed-earner''
unemployed workers with a combination of self-
employment and W-2 earnings.
PEUC: Provided an extra 13 weeks of benefits
after state benefits ended. State benefits typically
cover 26 weeks.
In a period of less than two years, federal spending on
unemployment benefits through these temporary programs totaled
$675 billion.\1\ One reason for this enormous spend was the
generous additional federal $600 per week (subsequently lowered
to $300 per week) FPUC benefits--on top of an average state
benefit of approximately $380 per week. This lucrative benefit
structure, combined with weak state systems (that failed to
have even the most basic level of identity verification) and
federal policy that allowed self-certification for PUA
benefits, provided an easy target for fraudsters, prisoners,
gangs, and international criminal organizations, leading to an
estimated $100-$135 billion in stolen unemployment benefits.\2\
Five years after passage of the CARES Act, the most recent data
from the Department of Labor (DOL) shows only $5 billion of
this theft, or roughly four percent, has been recovered.\3\
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\1\U.S. Department of Labor; Families First Coronavirus Response
Act and Coronavirus Aid, Relief, and Economic Security (CARES) Act
Funding to States through May 31, 2024, https://oui.doleta.gov/
unemploy/docs/cares_act_funding_state.html.
\2\Government Accountability Office (GAO-23-106696). ``Unemployment
Insurance. Estimated Amount of Fraud during Pandemic Likely Between
$100 Billion and $135 Billion,'' September 12, 2023.
\3\U.S. Department of Labor Employment and Training Administration.
UI Recovery Rates Report, https://oui.doleta.gov/unemploy/recovery/
recovery_rpt.asp.
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H.R. 1156 is a must-pass bill. Once the March 27, 2025,
deadline passes, Congress cannot retroactively reimpose
criminal liability after a limitations period has lapsed. The
``ex post facto'' clause in the Constitution prohibits
retroactive application of criminal laws that could punish
someone for an act that was not considered a crime when it was
committed. Law enforcement agencies rely on existing statutes
under the False Claims Act (criminal statutes) and
Administrative Claims Act (civil forfeiture), including charges
related to mail fraud, wire fraud, aggravated identity theft,
money laundering, and conspiracy, to prosecute pandemic UI
fraud cases. These laws generally have a five-year statute of
limitations. Without extension, law enforcement will be unable
to file new charges or pursue charges in cases still under
review.
H.R. 1156 is responsive to law enforcement agencies and is
widely supported by state workforce agencies. The Pandemic
Response Accountability Committee (PRAC), Department of Justice
(DOJ), Department of Labor Inspector General (DOL-OIG), and GAO
have all called for extending the statute of limitations to
allow more time for prosecutions.\4\ In addition, the National
Association of State Workforce Agencies, a non-partisan
association of workforce agencies in all states, the District
of Columbia, and U.S. territories has endorsed H.R. 1156.\5\
Congress has already acted to extend the statute of limitations
for fraud in the COVID-era Paycheck Protection Program (PPP)
and Economic Injury and Disaster Loans (EIDL) program.\6\ In
2022, with bi-partisan support, President Biden signed H.R.
7334, ``COVID-19 EIDL Fraud Statute of Limitations Act of
2022,'' and H.R. 7352, ``PPP and Bank Fraud Enforcement
Harmonization Act of 2022,'' into law, which extended the
statute of limitations from five to 10 years. H.R. 1156 does
the same for CARES Act UI programs.
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\4\See testimony from Ways and Means Full Committee hearing, ``The
Greatest Theft of Taxpayer Dollars: Unchecked Unemployment Fraud,''
February 8, 2023. https://waysandmeans. house.gov/event/hearing-on-the-
greatest-theft-of-taxpayer-dollars-unchecked-unemployment-fraud/.
\5\Letter to Chairman Jason Smith and Ranking Member Neal, dated
February 11, 2025. National Association of State Workforce Agencies.
\6\H.R. 7352--``PPP and Bank Fraud Enforcement Harmonization Act of
2022,'' Public Law No. 117-166.
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COVID-19 fraud investigations involving both UI and other
federal CARES Act programs, led by DOJ, Department of Homeland
Security, Department of Treasury, United States Postal
Inspection Service, DOL-OIG, and Small Business
Administration--Office of Inspector General, have resulted in
significant civil and criminal forfeitures and restitution
orders. According to a DOJ memo provided to Senator James
Lankford (R-OK) in response to a request for technical
assistance:
``As of the end of 2024, forfeitures in COVID-fraud
linked civil administrative, civil judicial, and
criminal judicial forfeiture cases resulted in the
seizure of over $1.77 billion in assets, the final
forfeiture of over $1.53 billion in assets, and the
return of at least $642 million in forfeited assets to
victimized federal, state, and private entities, with
more victim recoveries being regularly processed. . .
The government also obtained significant restitution
orders on behalf of government and private victims.
Enforcement efforts as of the end of 2024 resulted in
the issuance of over $1.1 billion in total restitution
orders in matters connected to COVID-19 fraud.''\7\
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\7\Email from DOJ to Ways and Means Committee Majority staff, dated
January 14, 2025.
As recently as January, law enforcement agencies continue
to prosecute cases and show recoveries. Based on information
provided to the COVID Fraud Enforcement Task Force, U.S.
Attorney's Offices have charged over 600 criminal UI fraud
cases with approximate associated losses of over $300
million.\8\ The DOL-OIG, has charged more than 2,000
individuals, resulting in over 1,400 convictions, more than
36,000 months of incarceration, and the identification of more
than $47 billion in potential fraud.\9\ These investigations
have included fraud perpetrated by foreign crime rings
including Nigerians, Canadians, and Romanians. In addition, law
enforcement agencies report a large number of outstanding
cases:
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\8\COVID-19 Fraud Enforcement Taskforce COVID-19 Fraud Enforcement
Task Force, 2024 Report, Council of the Inspectors Generals.
\9\Department of Labor Office of Inspector General. ``More Than
2,000 Individuals Charged for Unemployment Insurance Fraud Since the
COVID-19 Pandemic Began.'' (2025, Jan. 8). https://www.oig.dol.gov/
public/Press%20Releases/DOL-
OIG_Press_Release_Indictments_2025_0108.pdf.
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As of January 28, 2025, the U.S. Attorneys'
Case Management System shows 1,648 open, uncharged
criminal matters identified with the COVID-19 Fraud
national initiative code. This does not include any
criminal matters that are exclusively handled by the
Criminal, Tax, or other Main Justice division, open
criminal investigations at the agency level that have
not yet been presented/accepted at a U.S. Attorney's
Office, or open uncharged civil cases.\10\
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\10\Ibid, January 14, 2025.
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According to DOL-OIG, the agency has
approximately 157,000 open UI fraud complaints. In an
email to Committee staff, the agency stated, ``Without
an extension of the statute of limitations and
additional resources, the OIG will be unable to review
the vast majority of the 157,000 open UI fraud
complaints. We have almost 1,000 open UI fraud
investigative matters assigned to our field
offices.''\11\
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\11\Email from DOL-OIG to Ways and Means Committee Majority Staff,
dated January 13, 2025.
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Some of the same professional fraudsters that committed
fraud during the pandemic continue to target UI and other
government programs, including emergency disaster unemployment
assistance. During a hearing held by the Subcommittee on Work
and Welfare on February 6, 2025, ``Time's Running Out:
Prosecuting Fraudsters for Stealing Billions in Unemployment
Benefits from American Workers,'' one witness stated that it
was incredibility frustrating for him to see ``the same groups
doing the same thing . . . they use the money for horrible
things, child trafficking. They use it for drugs in our
communities, they use it for terrorism . . . I'd like to tell
you that things are better today, but just watching what's
going on in California, seeing what happened in North Carolina,
same groups, same playbook, stealing at scale.''\12\
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\12\``Three Key Moments: Hearing on Prosecuting Fraudsters for
Stealing Billions in Pandemic Unemployment Benefits,'' Committee on
Ways and Means, February 10, 2025.
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During the markup of H.R. 1156, all Democrats on the
Committee voted against the bill and rejected significant
efforts on the part of the Majority to compromise and introduce
a bi- partisan bill prior to the markup. Unfortunately, this is
a theme going back to the 117th Congress, when Ways and Means
Democrats walked away from their oversight responsibilities and
ignored repeated calls for hearings to investigate UI fraud
when they were in control of Congress and the White House.
Committee Democrats gave a number of reasons for opposing H.R.
1156, some of which were not substantively related to the bill
itself and none of which were seriously defensible.
Specifically, Committee Democrats criticized the rescission
of $5 million in funding provided to DOL for fraud prevention
and program integrity in Section 2118 of the CARES Act.
According to DOL, approximately $30 million remains unobligated
from the $1 billion in funding (post rescission made in the
bipartisan Fiscal Responsibility Act of 2023 (P.L. 118-5)).\13\
Extending the statute of limitations is associated with some
additional costs to states related to recordkeeping and
administration. The CARES Act currently includes uncapped
funding for any costs to states for administration of the
federal CARES Act programs,\14\ including costs of
recordkeeping and appeals necessary for prosecutions. DOL has
the authority to fully reimburse states for these costs without
any additional action from Congress. The Congressional Budget
Office (CBO) estimates approximately $5 million over the next
five years will be spent through this mechanism. To comply with
House rules, Section 3 of the bill offsets the CBO score by
rescinding $5 million in unobligated, prior-year appropriations
provided by Section 2118.
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\13\Email from DOL to Majority Staff, dated February 6, 2025.
\14\DOL Unemployment Insurance Program Letter No. 02-25, November
6, 2024.
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Committee Democrats argued rescinding $5 million from these
CARES Act funds is disingenuous since those funds were provided
to DOL to prevent fraud in the UI program and falsely claimed
those funds were already dedicated to identity verification
projects and would result in less funding for states. Under the
Biden Administration, the majority of these funds were spent by
DOL on ``equity grants'' ($260 million) and Tiger teams ($200
million). H.R. 1156 uses $5 million of that same pot of money
(which DOL confirmed has in fact not been obligated) for
extending the statute of limitations on pandemic UI fraud. This
is arguably a much more justifiable use of funds as it is
paying for a policy that provides law enforcement agencies with
additional time to prosecute fraud and recoup taxpayer dollars.
Quibbling over $5 million in funding also comes across as
short-sighted. Due to scorekeeping rules, CBO does not score
savings associated with additional recoupment of federal funds
as a result of extending the statute of limitations. According
to GAO, $100-$135 billion in pandemic unemployment benefits
were lost to fraud and DOL reports show only $5 billion has
been recovered. If law enforcement is able to recover even one
percent more as a result of H.R. 1156 extending the statute of
limitations to 10 years--that would yield at the low end $1
billion for American taxpayers. That's a 20,000-percent return
on an investment of $5 million. Currently, DOJ has 1,648 open
COVID-19 cases. Committee Democrats should be more concerned
about what American taxpayers will lose if the statute of
limitations is not extended, not to mention the number of
criminals that will go unpunished and remain at large to
continue their attacks to de-fraud federal programs.
Finally, Committee Democrats, argued that extending the
time available for prosecuting fraud would lead to ``surprise
bills,'' harassment and the targeting of otherwise innocent
Americans (including the elderly or a ``struggling parent'')
who may have gotten an overpayment or received funds through
administrative error or no fault of their own. Law enforcement
officials are concentrating on prosecuting individuals who
fraudulently and intentionally obtained large amounts of
government funds, including prisoners, online scammers,
international crime rings and gangs, not individuals who made
honest mistakes applying for unemployment.
An even cursory review of press releases from DOJ
investigations shows the agencies are prosecuting complex cases
involving criminals with malicious intent to de-fraud the
government (see Attachment A). This includes a litany of cases
involving international crime rings using sophisticated fraud
schemes, many of them sourced in Nigeria and Romania. Many
cases involved instances where funds were used to purchase
weapons, drugs, and involved child sex trafficking.\15\ These
cases have implications for stopping future fraud and
associated criminal activity. In September of 2023, Maryland
U.S. Attorney Erek Barron during an interview said that his
office's prosecutions of COVID-19-related fraud had been
responsible for a 20% reduction in the homicide rate in
Baltimore.\16\
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\15\Pandemic Oversight Response Committee (PRAC) compilation of
investigations and cases; https://pandemicoversight.gov/oversight/
reports?page=1.
\16\``I-Team Exclusive: Drop in Baltimore homicides due to COVID-19
fraud prosecutions, US attorney says,'' WBALTV-11, September 15, 2023.
---------------------------------------------------------------------------
Law enforcement is also prosecuting cases aimed at
disrupting large-scale international criminal networks that
have created national security concerns by demonstrating links
to hostile nation states. For example, a Pennsylvania man and
two others recently pled guilty to obtaining $59 million in
public benefits, including unemployment, and laundering the
proceeds to China. Cases like this are deeply concerning and
confirm fears regarding the attacks on our institutions by
hostile nations.\17\ These networks continue to target federal
programs and divert funds away from those who need them.
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\17\``One Defendant Pleads Guilty And Two Others Charged With
Fraudulently Obtaining $59 Million In Public Benefits And Laundering
Proceeds To China,'' United States Attorneys Office Middle District of
Pennsylvania, January 29, 2025.
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H.R. 1156 extends the statute of limitations for cases
exclusive to fraud with criminal intent, not innocent
Americans. Furthermore, the CARES Act already explicitly
provides states with broad authority to waive non-fraudulent UI
overpayments. For example, the CARES Act allows state workforce
agencies to waive overpayments when the overpayment is through
``no-fault of the claimant'' and/or repayment would be
``against equity and good conscience.'' All of these provide
protections against the scaremongering Committee Democrats have
engaged in to justify opposition to this bill.
H.R. 1156 is a common-sense, straightforward bill. The
``Pandemic Unemployment Fraud Enforcement Act,'' doubles the
statute of limitations to allow law enforcement to fully
prosecute criminals, secure justice for the American families
who were harmed, and recoup the hundreds of billions in stolen
taxpayer dollars.
C. Legislative History
BACKGROUND
H.R. 1156 was introduced on February 10, 2025, and was
referred to the Committee on Ways and Means.
COMMITTEE HEARINGS
The Committee held the following hearing:
On February 6, 2025, the Committee on Ways and Means
Subcommittee on Work and Welfare held a hearing titled ``Time's
Running Out: Prosecuting Fraudsters for Stealing Billions in
Unemployment Benefits from American Workers.'' The purpose of
the hearing was to investigate the need to extend the statute
of limitations for CARES Act-related UI fraud and how
fraudsters, international crime rings, and hostile nation
states continue to target the UI program.
COMMITTEE ACTION
The Committee on Ways and Means marked up H.R. 1156,
``Pandemic Unemployment Fraud Enforcement Act,'' on February
12, 2025, and ordered the bill, as amended, favorably reported
(with a quorum being present).
D. Designated Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop and consider H.R. 1156: ``Time's
Running Out: Prosecuting Fraudsters for Stealing Billions in
Unemployment Benefits from American Workers,'' hearing held on
February 6, 2025.
II. EXPLANATION OF THE BILL
REASONS FOR CHANGE
Section 1. The Committee believes the title accurately
reflects the content of the bill.
Section 2. The Committee believes extending the statute of
limitations for criminal prosecution and civil enforcement
actions in pandemic unemployment programs from five to 10 years
will give law enforcement officials the tools to hold
fraudsters accountable and recover billions in taxpayer
dollars.
Section 3. The Committee believes the budget offset will
provide the resources necessary to reimburse any additional
costs states could incur for recordkeeping and administration
as a result of extending the statute of limitations.
EXPLANATION OF PROVISIONS
Section 1. This section provides the short title, Pandemic
Unemployment Fraud Enforcement Act.
Section 2. This section establishes a 10-year statute of
limitations for criminal prosecution and civil enforcement
actions related to fraudulent unemployment claims funded in
whole or in part by the following Coronavirus Aid, Relief, and
Economic Security (CARES) Act (P.L. 116-136) programs: Pandemic
Unemployment Assistance; Federal Pandemic Unemployment
Compensation and Mixed Earner Unemployment; Compensation; and
Pandemic Emergency Unemployment Compensation.
Section 3. Rescinds $5,000,000 in unobligated balances from
prior year appropriations made available to the Department of
Labor in Section 2118 of the CARES Act.
EFFECTIVE DATE
This bill would become effective upon enactment.
Attachment A
U.S. ATTORNEY'S OFFICE (USAO) PRESS RELEASES: UI FRAUD INTERNATIONAL
NEXUS 5-17-201 TO 8-19-2024, COMPILED BY THE DEPARTMENT OF LABOR
INSPECTOR GENERAL
Nigerian Man Arrested in Alleged $10 Million
Pandemic Unemployment Assistance Fraud Scheme (USAO D-MA 08/19/
2024)
Nigerian National Pleads Guilty to Romance and
Pandemic Relief Fraud Scheme (USAO D-MA 07/30/2024)
Canadian resident sentenced to 3+ years in prison
for more than $1 million fraud on COVID relief programs (USAO
WD-WA 03/14/2024)
Nigerian Man Sentenced to Prison for COVID-19
Unemployment Insurance Benefits Scam (USAO ED-TN 02/22/2024)
Citizen of Dominican Republic Sentenced to 79
Months in Prison for $16 Million COVID-19 Unemployment Benefits
Fraud Scheme (USAO SD-NY 01/30/2024)
One of two Nigerian citizens who defrauded U.S.
Pandemic programs of more than $1 million pleads guilty (USAO
WD-WA 12/18/2023)
Two Nigerian Nationals Based in Maryland Sentenced
for Schemes to Steal California and Other States' Unemployment
Insurance Benefits (USAO ED-CA 10/10/2023)
Nigerian citizen extradited from Germany to face
charges over attempt to steal $25 million in U.S. benefits
(USAO WD-WA 08/18/2023)
Nigerian National Based in Maryland Sentenced to 4
Years and 9 Months in Prison and Nigerian House Ordered
Forfeited for Schemes to Steal Unemployment Insurance Benefits
(USAO ED-CA 07/25/2023)
Romanian Citizens Arrested and Charged with
Laundering $1.4 Million in Proceeds from Jewelry Thefts and
Covid Fraud (USAO SD-CA 03/15/2023)
Romanian Citizen Arrested and Charged in $5
Million Covid Relief Fraud (USAO SD-CA 03/02/2023)
Two Nigerian citizens indicted for attempting to
defraud the United States of over $25 million (USAO WD-WA 02/
23/2023)
Nigerian state official sentenced to 5 years in
prison for stealing U.S. disaster aid and taxpayer refunds
(USAO WD-WA 09/26/2022)
Undocumented Individual Sentenced for Filing
Fraudulent Claims in Unemployment Insurance Benefits (USAO D-NV
02/04/2022)
Nigerian National Pleads Guilty to a COVID-19
Unemployment Fraud Scheme and an Unrelated Elder Fraud Scheme
(USAO D-MD 12/20/2021)
Dominican National Arrested for Identity Theft and
Unemployment Fraud Related to COVID-19 Pandemic (USAO D-MA 12/
09/2021)
Nigerian National indicted in Washington State for
fraud on COVID-19 economic relief programs (USAO WD-WA 06/24/
2021)
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statements is made concerning
the vote of the Committee on Ways and Means during the markup
consideration of H.R. 1156, the ``Pandemic Umemployment Fraud
Enforcement Act'' on February 12, 2025.
The vote on the amendment offered by Mr. Thompson to the
amendment in the nature of a substitute to H.R. 1156, which
would strike section 3 of the bill, removing the budget offset
provision was not agreed to by a roll call vote of 18 yeas to
24 nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ ........ X ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. ........ X ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ ........ X ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... ........ ......... ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ ........ X ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... ........ X ......... Ms. Sanchez..... X ......... .........
Mr. Arrington................. ........ X ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... ........ X ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... ........ X ......... Ms. Chu......... X ......... .........
Mr. Hern...................... ........ X ......... Ms. Moore....... X ......... .........
Mrs. Miller................... ........ X ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... ........ ......... ......... Mr. Beyer....... X ......... .........
Mr. Kustoff................... ........ X ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... ........ X ......... Mr. Schneider... X ......... .........
Mr. Steube.................... ........ X ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... ........ X ......... Mr. Gomez....... ........ ......... .........
Mrs. Fischbach................ ........ X ......... Mr. Horsford.... X ......... .........
Mr. Moore..................... ........ X ......... Ms. Plaskett.... X ......... .........
Ms. Van Duyne................. ........ X ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. ........ X .........
Ms. Malliotakis............... ........ X .........
Mr. Carey..................... ........ X .........
Mr. Yakym..................... ........ X .........
Mr. Miller.................... ........ X .........
Mr. Bean...................... ........ X .........
----------------------------------------------------------------------------------------------------------------
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 1156, the ``Pandemic Unemployment Fraud
Enforcement Act,'' on February 12, 2025.
H.R. 1156 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 24 yeas to 18
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ ........ X .........
Mr. Buchanan.................. X ......... ......... Mr. Doggett..... ........ X .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... ........ X .........
Mr. Kelly..................... ........ ......... ......... Mr. Larson...... ........ X .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... ........ X .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... ........ X .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... ........ X .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... ........ X .........
Mr. Smucker................... X ......... ......... Ms. Chu......... ........ X .........
Mr. Hern...................... X ......... ......... Ms. Moore....... ........ X .........
Mrs. Miller................... X ......... ......... Mr. Boyle....... ........ X .........
Dr. Murphy.................... ........ ......... ......... Mr. Beyer....... ........ X .........
Mr. Kustoff................... X ......... ......... Mr. Evans....... ........ X .........
Mr. Fitzpatrick............... X ......... ......... Mr. Schneider... ........ X .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... ........ X .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... ........ ......... .........
Mrs. Fischbach................ X ......... ......... Mr. Horsford.... ........ X .........
Mr. Moore..................... X ......... ......... Ms. Plaskett.... ........ X .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... ........ X .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller.................... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... X ......... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 1156, as
reported. The estimate prepared by the Congressional Budget
Office (CBO), which is included below.
B. Statement Regarding New Budget Authority and
Tax Expenditures Budget Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee states further that the bill involves no new or
increased tax expenditures.
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, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
The bill would:
Extend the statute of limitations for
federal criminal fraud charges related to unemployment
compensation
Rescind funding for program integrity
activities by state unemployment insurance agencies
Estimated budgetary effects would mainly stem from:
Increasing states' administrative costs that
would be reimbursed by the Department of Labor
Rescinding funds for program integrity
activities
Bill summary: H.R. 1156 would extend the statute of
limitations from 5 to 10 years for federal criminal prosecution
and civil enforcement actions for fraud related to the
temporary unemployment programs enacted during the coronavirus
pandemic. Under current law, the statute of limitations for
those offenses will begin to expire in March 2025. Currently,
states refer unemployment insurance claims involving
allegations of fraud to the Office of Inspector General (OIG)
at the Department of Labor (DOL) for further investigation.
That office reviews cases and refers findings to the Department
of Justice (DOJ) or other entities for criminal or civil
prosecution.
The bill also would rescind direct appropriations provided
for program integrity activities in the American Rescue Plan
Act of 2021.
Estimated Federal cost: The estimated budgetary effect of
H.R. 1156 is shown in Table 1. The costs of the legislation
fall within budget functions 500 (education training,
employment, and social services), 600 (income security), and
750 (administration of justice).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1156
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
---------------------------------------------------------------------------------------------------------
2025- 2025-
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2030 2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority.................... 0 * * * * * * * * * * * *
Estimated Outlays............................. -3 1 1 1 * * * * * * * * *
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization....................... * 2 1 1 1 * n.e. n.e. n.e. n.e. n.e. 5 n.e.
Estimated Outlays............................. * 2 1 1 1 * n.e. n.e. n.e. n.e. n.e. 5 n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
n.e. = not estimated; *= between -$500,000 and $500,000.
CBO estimates that enacting H.R. 1156 would increase revenues by less than $500,000 over the 2025-2035 period.
Basis of estimate: CBO assumes that the bill will be
enacted in March 2025. Estimated outlays are based on
historical patterns for existing and similar activities.
Direct spending and revenues: CBO estimates that enacting
H.R. 1156 would increase net direct spending and revenues by
less than $500,000 over the 2025-2035 period (see Table 2).
TABLE 2.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 1156
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
---------------------------------------------------------------------------------------------------------
2025- 2025-
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2030 2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Extend the Statute of Limitations:
Estimated Budget Authority................ 5 * * * * * * * * * * 5 5
Estimated Outlays......................... * 3 1 1 * * * * * * * 5 5
Rescind Funding for Program Integrity
Activities:
Budget Authority.......................... -5 0 0 0 0 0 0 0 0 0 0 -5 -5
Estimated Outlays......................... -3 -2 0 0 0 0 0 0 0 0 0 -5 -5
Total Changes:
Estimated Budget Authority............ 0 * * * * * * * * * * * *
Estimated Outlays..................... -3 1 1 1 * * * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
*= between zero and $500,000.
Extend the statute of limitations: Upon the enactment of
H.R. 1156, CBO expects that DOL would provide additional
funding to states to continue their referrals of cases to DOL
and provide information about those cases to the department's
OIG and federal law enforcement agencies. Under current law,
DOL has permanent authority to fund whatever amounts are
necessary for those activities for pandemic-related programs.
Using information from DOL, CBO estimates that under the bill
the department would provide $5 million in additional funding
to states, increasing direct spending by the same amount over
the 2025-2035 period.
By extending the period for which DOJ could pursue
prosecutions, CBO expects that H.R. 1156 would increase the
collections of penalties and the recovery of additional
benefits paid fraudulently in 2025 and subsequent years. That
change would not affect state laws or rules governing the
recovery of overpayments. Based on an analysis of data for
similar offenses from the U.S. Sentencing Commission, CBO
estimates that the increase in penalty collections would be
insignificant. Criminal and civil fines are recorded in the
budget as revenues; criminal fines are deposited into the Crime
Victims Fund and spent without further appropriation. Thus, CBO
estimates that enacting H.R. 1156 would increase revenues and
the associated direct spending from penalty collections by less
than $500,000 over the 2025-2035 period. Additionally, using
information from DOL and DOJ, CBO estimates that any additional
recoveries of overpaid benefits, which are recorded as
reductions in direct spending, would be insignificant. The
extent to which any additional recoveries would happen is
highly uncertain.
Rescind funding for program integrity activities: The bill
would rescind $5 million in mandatory funding provided in the
American Rescue Plan Act to state unemployment insurance
agencies for program integrity activities, which are undertaken
to ensure that benefits are paid correctly. Using information
from DOL, CBO estimates that the rescission would decrease
direct spending by $5 million over the 2025-2035 period.
Spending Subject to appropriation: CBO assumes that if the
statute of limitations were extended, more potential fraud
cases would be referred to the OIG, and that office would
continue to investigate cases it might otherwise have dropped.
Using information from the Department of Labor, CBO estimates
that the OIG would require an additional $5 million over the
2025-2030 period to handle those referrals and cases. Assuming
appropriation of the estimated amounts, CBO estimates that
outlays for those activities would total $5 million over the
same period (see Table 1).
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. CBO estimates that enacting the bill would increase
direct spending by less than $500,000 over the 2025-2035 period
and increase revenues by less than $500,000 in every year and
over the 2025-2035 period (see Table 3).
TABLE 3.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 1156, THE PANDEMIC UNEMPLOYMENT FRAUD ENFORCEMENT ACT, AS ORDERED REPORTED BY
THE HOUSE COMMITTEE ON WAYS AND MEANS ON FEBURARY 12, 2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2025-2030 2025-2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN OUTLAYS
Pay-As-You-Go Effect................................. -3 1 1 1 0 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 1156 would not significantly
increase net direct spending in any of the four consecutive 10-
year periods beginning in 2036.
CBO estimates that enacting H.R. 1156 would not
significantly increase on-budget deficits in any of the four
consecutive 10-year periods beginning in 2036.
Mandates: The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act.
Estimate prepared by: Federal costs: Jeremy Crimm
(Department of Justice), Meredith Decker (Department of Labor);
Mandates: Erich Dvorak.
Estimate reviewed by: Elizabeth Cove Delisle, Chief, Income
Security Cost Estimates Unit; Justin Humphrey, Chief, Finance,
Housing, and Education Cost Estimates Unit; Kathleen
FitzGerald, Chief, Public and Private Mandates Unit; Christina
Hawley Anthony, Deputy Director of Budget Analysis; H. Samuel
Papenfuss, Deputy Director of Budget Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.
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 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 respect 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. 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.
E. Tax Complexity Analysis
Pursuant to clause 3(h)(1) of rule XIII of the Rules of the
House of Representatives, the staff of the Joint Committee on
Taxation has determined that a complexity analysis is not
required under section 4022(b) of the IRS Reform Act because
the bill contains no provisions that amend the Internal Revenue
Code of 1986 and that have ``widespread applicability'' to
individuals or small businesses, within the meaning of the
rule.
F. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
VI. CHANGES IN EXISTING LAW MADE BY THE BILL,
AS REPORTED
A. Changes in Existing Law Proposed by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
CARES ACT
* * * * * * *
DIVISION A--KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM
ENHANCEMENTS, AND ECONOMIC STABILIZATION
* * * * * * *
TITLE II--ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND BUSINESSES
Subtitle A--Unemployment Insurance Provisions
* * * * * * *
SEC. 2102. PANDEMIC UNEMPLOYMENT ASSISTANCE.
(a) Definitions.--In this section:
(1) COVID-19.--The term ``COVID-19'' means the 2019
Novel Coronavirus or 2019-nCoV.
(2) COVID-19 public health emergency.--The term
``COVID-19 public health emergency'' means the public
health emergency declared by the Secretary of Health
and Human Services on January 27, 2020, with respect to
the 2019 Novel Coronavirus.
(3) Covered individual.--The term ``covered
individual''--
(A) means an individual who--
(i) is not eligible for regular
compensation or extended benefits under
State or Federal law or pandemic
emergency unemployment compensation
under section 2107, including an
individual who has exhausted all rights
to regular unemployment or extended
benefits under State or Federal law or
pandemic emergency unemployment
compensation under section 2107;
(ii) provides self-certification that
the individual--
(I) is otherwise able to work
and available for work within
the meaning of applicable State
law, except the individual is
unemployed, partially
unemployed, or unable or
unavailable to work because--
(aa) the individual
has been diagnosed with
COVID-19 or is
experiencing symptoms
of COVID-19 and seeking
a medical diagnosis;
(bb) a member of the
individual's household
has been diagnosed with
COVID-19;
(cc) the individual
is providing care for a
family member or a
member of the
individual's household
who has been diagnosed
with COVID-19;
(dd) a child or other
person in the household
for which the
individual has primary
caregiving
responsibility is
unable to attend school
or another facility
that is closed as a
direct result of the
COVID-19 public health
emergency and such
school or facility care
is required for the
individual to work;
(ee) the individual
is unable to reach the
place of employment
because of a quarantine
imposed as a direct
result of the COVID-19
public health
emergency;
(ff) the individual
is unable to reach the
place of employment
because the individual
has been advised by a
health care provider to
self-quarantine due to
concerns related to
COVID-19;
(gg) the individual
was scheduled to
commence employment and
does not have a job or
is unable to reach the
job as a direct result
of the COVID-19 public
health emergency;
(hh) the individual
has become the
breadwinner or major
support for a household
because the head of the
household has died as a
direct result of COVID-
19;
(ii) the individual
has to quit his or her
job as a direct result
of COVID-19;
(jj) the individual's
place of employment is
closed as a direct
result of the COVID-19
public health
emergency; or
(kk) the individual
meets any additional
criteria established by
the Secretary for
unemployment assistance
under this section; or
(II) is self-employed, is
seeking part-time employment,
does not have sufficient work
history, or otherwise would not
qualify for regular
unemployment or extended
benefits under State or Federal
law or pandemic emergency
unemployment compensation under
section 2107 and meets the
requirements of subclause (I);
and
(iii) provides documentation to
substantiate employment or self-
employment or the planned commencement
of employment or self-employment not
later than 21 days after the later of
the date on which the individual
submits an application for pandemic
unemployment assistance under this
section or the date on which an
individual is directed by the State
Agency to submit such documentation in
accordance with section 625.6(e) of
title 20, Code of Federal Regulations,
or any successor thereto, except that
such deadline may be extended if the
individual has shown good cause under
applicable State law for failing to
submit such documentation; and
(B) does not include--
(i) an individual who has the ability
to telework with pay; or
(ii) an individual who is receiving
paid sick leave or other paid leave
benefits, regardless of whether the
individual meets a qualification
described in items (aa) through (kk) of
subparagraph (A)(i)(I).
(4) Secretary.--The term ``Secretary'' means the
Secretary of Labor.
(5) State.--The term ``State'' includes the District
of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, the Federated States
of Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau.
(b) Assistance for Unemployment as a Result of COVID-19.--
Subject to subsection (c), the Secretary shall provide to any
covered individual unemployment benefit assistance while such
individual is unemployed, partially unemployed, or unable to
work for the weeks of such unemployment with respect to which
the individual is not entitled to any other unemployment
compensation (as that term is defined in section 85(b) of title
26, United States Code) or waiting period credit.
(c) Applicability.--
(1) In general.--Except as provided in paragraph (2),
the assistance authorized under subsection (b) shall be
available to a covered individual--
(A) for weeks of unemployment, partial
unemployment, or inability to work caused by
COVID-19--
(i) beginning on or after January 27,
2020; and
(ii) ending on or before September 6,
2021; and
(B) subject to subparagraph (A)(ii), as long
as the covered individual's unemployment,
partial unemployment, or inability to work
caused by COVID-19 continues.
(2) Limitation on duration of assistance.--The total
number of weeks for which a covered individual may
receive assistance under this section shall not exceed
79 weeks and such total shall include any week for
which the covered individual received regular
compensation or extended benefits under any Federal or
State law, except that if after the date of enactment
of this Act, the duration of extended benefits is
extended, the 79-week period described in this
paragraph shall be extended by the number of weeks that
is equal to the number of weeks by which the extended
benefits were extended.
(3) Assistance for unemployment before date of
enactment.--The Secretary shall establish a process for
making assistance under this section available for
weeks beginning on or after January 27, 2020, and
before the date of enactment of this Act.
(5) Appeals by an individual.--
(A) In general.--An individual may appeal any
determination or redetermination regarding the
rights to pandemic unemployment assistance
under this section made by the State agency of
any of the States.
(B) Procedure.--All levels of appeal filed
under this paragraph in the 50 states, the
District of Columbia, the Commonwealth of
Puerto Rico, and the Virgin Islands--
(i) shall be carried out by the
applicable State that made the
determination or redetermination; and
(ii) shall be conducted in the same
manner and to the same extent as the
applicable State would conduct appeals
of determinations or redeterminations
regarding rights to regular
compensation under State law.
(C) Procedure for certain territories.--With
respect to any appeal filed in Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the Federated States of Micronesia,
Republic of the Marshall Islands, and the
Republic of Palau--
(i) lower level appeals shall be
carried out by the applicable entity
within the State;
(ii) if a higher level appeal is
allowed by the State, the higher level
appeal shall be carried out by the
applicability entity within the State;
and
(iii) appeals described in clauses
(i) and (ii) shall be conducted in the
same manner and to the same extent as
appeals of regular unemployment
compensation are conducted under the
unemployment compensation law of
Hawaii.
(6) Continued eligibility for assistance.--As a
condition of continued eligibility for assistance under
this section, a covered individual shall submit a
recertification to the State for each week after the
individual's 1st week of eligibility that certifies
that the individual remains an individual described in
subsection (a)(3)(A)(ii) for such week.
(d) Amount of Assistance.--
(1) In general.--The assistance authorized under
subsection (b) for a week of unemployment, partial
unemployment, or inability to work shall be--
(A)(i) the weekly benefit amount authorized
under the unemployment compensation law of the
State where the covered individual was
employed, except that the amount may not be
less than the minimum weekly benefit amount
described in section 625.6 of title 20, Code of
Federal Regulations, or any successor thereto;
and
(ii) the amount of Federal Pandemic
Unemployment Compensation under section 2104;
and
(B) in the case of an increase of the weekly
benefit amount after the date of enactment of
this Act, increased in an amount equal to such
increase.
(2) Calculations of amounts for certain covered
individuals.--In the case of a covered individual who
is self-employed, who lives in a territory described in
subsection (c) or (d) of section 625.6 of title 20,
Code of Federal Regulations, or who would not otherwise
qualify for unemployment compensation under State law,
the assistance authorized under subsection (b) for a
week of unemployment shall be calculated in accordance
with section 625.6 of title 20, Code of Federal
Regulations, or any successor thereto, and shall be
increased by the amount of Federal Pandemic
Unemployment Compensation under section 2104.
(3) Allowable methods of payment.--Any assistance
provided for in accordance with paragraph (1)(A)(ii)
shall be payable either--
(A) as an amount which is paid at the same
time and in the same manner as the assistance
provided for in paragraph (1)(A)(i) is payable
for the week involved; or
(B) at the option of the State, by payments
which are made separately from, but on the same
weekly basis as, any assistance provided for in
paragraph (1)(A)(i).
(4) Waiver authority.--In the case of individuals who
have received amounts of pandemic unemployment
assistance to which they were not entitled, the State
shall require such individuals to repay the amounts of
such pandemic unemployment assistance to the State
agency, except that the State agency may waive such
repayment if it determines that--
(A) the payment of such pandemic unemployment
assistance was without fault on the part of any
such individual; and
(B) such repayment would be contrary to
equity and good conscience.
(e) Waiver of State Requirement.--Notwithstanding State law,
for purposes of assistance authorized under this section,
compensation under this Act shall be made to an individual
otherwise eligible for such compensation without any waiting
period.
(f) Agreements With States.--
(1) In general.--The Secretary shall provide the
assistance authorized under subsection (b) through
agreements with States which, in the judgment of the
Secretary, have an adequate system for administering
such assistance through existing State agencies,
including procedures for identity verification or
validation and for timely payment, to the extent
reasonable and practicable.
(2) Payments to states.--There shall be paid to each
State which has entered into an agreement under this
subsection an amount equal to 100 percent of--
(A) the total amount of assistance provided
by the State pursuant to such agreement; and
(B) any additional administrative expenses
incurred by the State by reason of such
agreement (as determined by the Secretary),
including any administrative expenses necessary
to facilitate processing of applications for
assistance under this section online or by
telephone rather than in-person and expenses
related to identity verification or validation
and timely and accurate payment.
(3) Terms of payments.--Sums payable to any State by
reason of such State's having an agreement under this
subsection shall be payable, either in advance or by
way of reimbursement (as determined by the Secretary),
in such amounts as the Secretary estimates the State
will be entitled to receive under this subsection for
each calendar month, reduced or increased, as the case
may be, by any amount by which the Secretary finds that
his estimates for any prior calendar month were greater
or less than the amounts which should have been paid to
the State. Such estimates may be made on the basis of
such statistical, sampling, or other method as may be
agreed upon by the Secretary and the State agency of
the State involved.
(g) Funding.--
(1) Assistance.--
(A) In general.--Funds in the extended
unemployment compensation account (as
established by section 905(a) of the Social
Security Act (42 U.S.C. 1105(a)) of the
Unemployment Trust Fund (as established by
section 904(a) of such Act (42 U.S.C. 1104(a))
shall be used to make payments to States
pursuant to subsection (f)(2)(A).
(B) Transfer of funds.--Notwithstanding any
other provision of law, the Secretary of the
Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise
appropriated) to the extended unemployment
compensation account such sums as the Secretary
of Labor estimates to be necessary to make
payments described in subparagraph (A). There
are appropriated from the general fund of the
Treasury, without fiscal year limitation, the
sums referred to in the preceding sentence and
such sums shall not be required to be repaid.
(2) Administrative expenses.--
(A) In general.--Funds in the employment
security administration account (as established
by section 901(a) of the Social Security Act
(42 U.S.C. 1105(a)) of the Unemployment Trust
Fund (as established by section 904(a) of such
Act (42 U.S.C. 1104(a)) shall be used to make
payments to States pursuant to subsection
(f)(2)(B).
(B) Transfer of funds.--Notwithstanding any
other provision of law, the Secretary of the
Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise
appropriated) to the employment security
administration account such sums as the
Secretary of Labor estimates to be necessary to
make payments described in subparagraph (A).
There are appropriated from the general fund of
the Treasury, without fiscal year limitation,
the sums referred to in the preceding sentence
and such sums shall not be required to be
repaid.
(3) Certifications.--The Secretary of Labor shall
from time to time certify to the Secretary of the
Treasury for payment to each State the sums payable to
such State under paragraphs (1) and (2).
(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 3801 of
title 31, United 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 Pandemic
Unemployment Fraud Enforcement Act.
[(h)] (i) Relationship Between Pandemic Unemployment
Assistance and Disaster Unemployment Assistance.--Except as
otherwise provided in this section or to the extent there is a
conflict between this section and part 625 of title 20, Code of
Federal Regulations, such part 625 shall apply to this section
as if--
(1) the term ``COVID-19 public health emergency''
were substituted for the term ``major disaster'' each
place it appears in such part 625; and
(2) the term ``pandemic'' were substituted for the
term ``disaster'' each place it appears in such part
625.
* * * * * * *
SEC. 2104. EMERGENCY INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.
(a) Federal-State Agreements.--Any State which desires to do
so may enter into and participate in an agreement under this
section with the Secretary of Labor (in this section referred
to as the ``Secretary''). Any State which is a party to an
agreement under this section may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) Federal pandemic unemployment compensation.--Any
agreement under this section shall provide that the
State agency of the State will make payments of regular
compensation to individuals in amounts and to the
extent that they would be determined if the State law
of the State were applied, with respect to any week for
which the individual is (disregarding this section)
otherwise entitled under the State law to receive
regular compensation, as if such State law had been
modified in a manner such that the amount of regular
compensation (including dependents' allowances) payable
for any week shall be equal to--
(A) the amount determined under the State law
(before the application of this paragraph),
plus
(B) an additional amount equal to the amount
specified in paragraph (3) (in this section
referred to as ``Federal Pandemic Unemployment
Compensation''), plus
(C) an additional amount of $100 (in this
section referred to as ``Mixed Earner
Unemployment Compensation'') in any case in
which the individual received at least $5,000
of self-employment income (as defined in
section 1402(b) of the Internal Revenue Code of
1986) in the most recent taxable year ending
prior to the individual's application for
regular compensation.
(2) Allowable methods of payment.--Any Federal
Pandemic Unemployment Compensation or Mixed Earner
Unemployment Compensation provided for in accordance
with paragraph (1) shall be payable either--
(A) as an amount which is paid at the same
time and in the same manner as any regular
compensation otherwise payable for the week
involved; or
(B) at the option of the State, by payments
which are made separately from, but on the same
weekly basis as, any regular compensation
otherwise payable.
(3) Amount of federal pandemic unemployment
compensation.--
(A) In general.--The amount specified in this
paragraph is the following amount:
(i) For weeks of unemployment
beginning after the date on which an
agreement is entered into under this
section and ending on or before July
31, 2020, $600.
(ii) For weeks of unemployment
beginning after December 26, 2020 (or,
if later, the date on which such
agreement is entered into), and ending
on or before September 6, 2021, $300.
(4) Certain documentation required.--An agreement
under this section shall include a requirement, similar
to the requirement under section 2102(a)(3)(A)(iii),
for the substantiation of self-employment income with
respect to each applicant for Mixed Earner Unemployment
Compensation under paragraph (1)(C).
(c) Nonreduction Rule.--
(1) In general.--An agreement under this section
shall not apply (or shall cease to apply) with respect
to a State upon a determination by the Secretary that
the method governing the computation of regular
compensation under the State law of that State has been
modified in a manner such that the number of weeks (the
maximum benefit entitlement), or the average weekly
benefit amount, of regular compensation which will be
payable during the period of the agreement (determined
disregarding any Federal Pandemic Unemployment
Compensation or Mixed Earner Unemployment Compensation)
will be less than the number of weeks, or the average
weekly benefit amount, of the average weekly benefit
amount of regular compensation which would otherwise
have been payable during such period under the State
law, as in effect on January 1, 2020.
(2) Maximum benefit entitlement.--In paragraph (1),
the term ``maximum benefit entitlement'' means the
amount of regular unemployment compensation payable to
an individual with respect to the individual's benefit
year.
(d) Payments to States.--
(1) In general.--
(A) Full reimbursement.--There shall be paid
to each State which has entered into an
agreement under this section an amount equal to
100 percent of--
(i) the total amount of Federal
Pandemic Unemployment Compensation and
Mixed Earner Unemployment Compensation
paid to individuals by the State
pursuant to such agreement; and
(ii) any additional administrative
expenses incurred by the State by
reason of such agreement (as determined
by the Secretary).
(B) Terms of payments.--Sums payable to any
State by reason of such State's having an
agreement under this section shall be payable,
either in advance or by way of reimbursement
(as determined by the Secretary), in such
amounts as the Secretary estimates the State
will be entitled to receive under this section
for each calendar month, reduced or increased,
as the case may be, by any amount by which the
Secretary finds that his estimates for any
prior calendar month were greater or less than
the amounts which should have been paid to the
State. Such estimates may be made on the basis
of such statistical, sampling, or other method
as may be agreed upon by the Secretary and the
State agency of the State involved.
(2) Certifications.--The Secretary shall from time to
time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State
under this section.
(3) Appropriation.--There are appropriated from the
general fund of the Treasury, without fiscal year
limitation, such sums as may be necessary for purposes
of this subsection.
(e) Applicability.--An agreement entered into under this
section shall apply--
(1) to weeks of unemployment beginning after the date
on which such agreement is entered into and ending on
or before July 31, 2020; and
(2) to weeks of unemployment beginning after December
26, 2020 (or, if later, the date on which such
agreement is entered into), and ending on or before
September 6, 2021.
(f) Fraud and Overpayments.--
(1) In general.--If an individual knowingly has made,
or caused to be made by another, a false statement or
representation of a material fact, or knowingly has
failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement
or representation or of such nondisclosure such
individual has received an amount of Federal Pandemic
Unemployment Compensation or Mixed Earner Unemployment
Compensation to which such individual was not entitled,
such individual--
(A) shall be ineligible for further Federal
Pandemic Unemployment Compensation or Mixed
Earner Unemployment Compensation in accordance
with the provisions of the applicable State
unemployment compensation law relating to fraud
in connection with a claim for unemployment
compensation; and
(B) shall be subject to prosecution under
section 1001 of title 18, United States Code.
(2) Repayment.--In the case of individuals who have
received amounts of Federal Pandemic Unemployment
Compensation or Mixed Earner Unemployment Compensation
to which they were not entitled, the State shall
require such individuals to repay the amounts of such
Federal Pandemic Unemployment Compensation or Mixed
Earner Unemployment Compensation to the State agency,
except that the State agency may waive such repayment
if it determines that--
(A) the payment of such Federal Pandemic
Unemployment Compensation or Mixed Earner
Unemployment Compensation was without fault on
the part of any such individual; and
(B) such repayment would be contrary to
equity and good conscience.
(3) Recovery by state agency.--
(A) In general.--The State agency shall
recover the amount to be repaid, or any part
thereof, by deductions from any Federal
Pandemic Unemployment Compensation or Mixed
Earner Unemployment Compensation payable to
such individual or from any unemployment
compensation payable to such individual under
any State or Federal unemployment compensation
law administered by the State agency or under
any other State or Federal law administered by
the State agency which provides for the payment
of any assistance or allowance with respect to
any week of unemployment, during the 3-year
period after the date such individuals received
the payment of the Federal Pandemic
Unemployment Compensation or Mixed Earner
Unemployment Compensation to which they were
not entitled, in accordance with the same
procedures as apply to the recovery of
overpayments of regular unemployment benefits
paid by the State.
(B) Opportunity for hearing.--No repayment
shall be required, and no deduction shall be
made, until a determination has been made,
notice thereof and an opportunity for a fair
hearing has been given to the individual, and
the determination has become final.
(4) Review.--Any determination by a State agency
under this section shall be subject to review in the
same manner and to the same extent as determinations
under the State unemployment compensation law, and only
in that manner and to that extent.
(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 3801 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 Pandemic
Unemployment Fraud Enforcement Act.
(g) Application to Other Unemployment Benefits.--Each
agreement under this section shall include provisions to
provide that--
(1) the purposes of the preceding provisions of this
section, as such provisions apply with respect to
Federal Pandemic Unemployment Compensation, shall be
applied with respect to unemployment benefits described
in subsection (i)(2) to the same extent and in the same
manner as if those benefits were regular compensation;
and
(2) the purposes of the preceding provisions of this
section, as such provisions apply with respect to Mixed
Earner Unemployment Compensation, shall be applied with
respect to unemployment benefits described in
subparagraph (A), (B), (D), or (E) of subsection (i)(2)
to the same extent and in the same manner as if those
benefits were regular compensation.
(h) Disregard of Additional Compensation for Purposes of
Medicaid and CHIP.--The monthly equivalent of any Federal
pandemic unemployment compensation paid to an individual under
this section shall be disregarded when determining income for
any purpose under the programs established under titles XIX and
title XXI of the Social Security Act (42 U.S.C. 1396 et seq.,
1397aa et seq.).
(i) Definitions.--For purposes of this section--
(1) the terms ``compensation'', ``regular
compensation'', ``benefit year'', ``State'', ``State
agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205
of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note); and
(2) any reference to unemployment benefits described
in this paragraph shall be considered to refer to--
(A) extended compensation (as defined by
section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970);
(B) regular compensation (as defined by
section 85(b) of the Internal Revenue Code of
1986) provided under any program administered
by a State under an agreement with the
Secretary;
(C) pandemic unemployment assistance under
section 2102;
(D) pandemic emergency unemployment
compensation under section 2107; and
(E) short-time compensation under a short-
time compensation program (as defined in
section 3306(v) of the Internal Revenue Code of
1986).
* * * * * * *
SEC. 2107. PANDEMIC EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) Federal-State Agreements.--
(1) In general.--Any State which desires to do so may
enter into and participate in an agreement under this
section with the Secretary of Labor (in this section
referred to as the ``Secretary''). Any State which is a
party to an agreement under this section may, upon
providing 30 days' written notice to the Secretary,
terminate such agreement.
(2) Provisions of agreement.--Any agreement under
paragraph (1) shall provide that the State agency of
the State will make payments of pandemic emergency
unemployment compensation to individuals who--
(A) have exhausted all rights to regular
compensation under the State law or under
Federal law with respect to a benefit year
(excluding any benefit year that ended before
July1, 2019);
(B) have no rights to regular compensation
with respect to a week under such law or any
other State unemployment compensation law or to
compensation under any other Federal law;
(C) are not receiving compensation with
respect to such week under the unemployment
compensation law of Canada; and
(D) are able to work, available to work, and
actively seeking work.
(3) Exhaustion of benefits.--For purposes of
paragraph (2)(A), an individual shall be deemed to have
exhausted such individual's rights to regular
compensation under a State law when--
(A) no payments of regular compensation can
be made under such law because such individual
has received all regular compensation available
to such individual based on employment or wages
during such individual's base period; or
(B) such individual's rights to such
compensation have been terminated by reason of
the expiration of the benefit year with respect
to which such rights existed.
(4) Weekly benefit amount, etc.--For purposes of any
agreement under this section--
(A) the amount of pandemic emergency
unemployment compensation which shall be
payable to any individual for any week of total
unemployment shall be equal to--
(i) the amount of the regular
compensation (including dependents'
allowances) payable to such individual
during such individual's benefit year
under the State law for a week of total
unemployment;
(ii) the amount of Federal Pandemic
Unemployment Compensation under section
2104(b)(1)(B); and
(iii) the amount (if any) of Mixed
Earner Unemployment Compensation under
section 2104(b)(1)(C);
(B) the terms and conditions of the State law
which apply to claims for regular compensation
and to the payment thereof (including terms and
conditions relating to availability for work,
active search for work, and refusal to accept
work) shall apply to claims for pandemic
emergency unemployment compensation and the
payment thereof, except where otherwise
inconsistent with the provisions of this
section or with the regulations or operating
instructions of the Secretary promulgated to
carry out this section;
(C) the maximum amount of pandemic emergency
unemployment compensation payable to any
individual for whom an pandemic emergency
unemployment compensation account is
established under subsection (b) shall not
exceed the amount established in such account
for such individual; and
(D) the allowable methods of payment under
section 2104(b)(2) shall apply to payments of
amounts described in subparagraph (A)(ii).
(5) Coordination rules.--
(A) In general.--Subject to subparagraph (B),
an agreement under this section shall apply
with respect to a State only upon a
determination by the Secretary that, under the
State law or other applicable rules of such
State, the payment of extended compensation for
which an individual is otherwise eligible must
be deferred until after the payment of any
pandemic emergency unemployment compensation
under subsection (b) for which the individual
is concurrently eligible.
(B) Special rule.--In the case of an
individual who is receiving extended
compensation under the State law for the week
that includes the date of enactment of this
subparagraph (without regard to the amendments
made by subsections (a) and (b) of section 206
of the Continued Assistance for Unemployed
Workers Act of 2020) or for the week that
includes the date of enactmentof the American
Rescue Plan Act of 2021 (without regard to
theamendments made by subsections (a) and (b)
of section 9016 ofsuch Act), such individual
shall not be eligible to receive pandemic
emergency unemployment compensation by reason
of such amendments until such individual has
exhausted all rights to such extended benefits.
(6) Nonreduction rule.--
(A) In general.--An agreement under this
section shall not apply (or shall cease to
apply) with respect to a State upon a
determination by the Secretary that the method
governing the computation of regular
compensation under the State law of that State
has been modified in a manner such that the
number of weeks (the maximum benefit
entitlement), or the average weekly benefit
amount, of regular compensation which will be
payable during the period of the agreement will
be less than the number of weeks, or the
average weekly benefit amount, of the average
weekly benefit amount of regular compensation
which would otherwise have been payable during
such period under the State law, as in effect
on January 1, 2020.
(B) Maximum benefit entitlement.--In
subparagraph (A), the term ``maximum benefit
entitlement'' means the amount of regular
unemployment compensation payable to an
individual with respect to the individual's
benefit year.
(7) Actively seeking work.--
(A) In general.--Subject to subparagraph (C),
for purposes of paragraph (2)(D), the term
``actively seeking work'' means, with respect
to any individual, that such individual--
(i) is registered for employment
services in such a manner and to such
extent as prescribed by the State
agency;
(ii) has engaged in an active search
for employment that is appropriate in
light of the employment available in
the labor market, the individual's
skills and capabilities, and includes a
number of employer contacts that is
consistent with the standards
communicated to the individual by the
State;
(iii) has maintained a record of such
work search, including employers
contacted, method of contact, and date
contacted; and
(iv) when requested, has provided
such work search record to the State
agency.
(B) Flexibility.--Notwithstanding the
requirements under subparagraph (A) and
paragraph (2)(D), a State shall provide
flexibility in meeting such requirements in
case of individuals unable to search for work
because of COVID-19, including because of
illness, quarantine, or movement restriction.
(8) Special rule for extended compensation.--At the
option of a State, for any weeks of unemployment
beginning after the date of the enactment of this
paragraph and before September 6, 2021, an individual's
eligibility period (as described in section 203(c) of
the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note)) shall, for purposes
of any determination of eligibility for extended
compensation under the State law of such State, be
considered to include any week which begins--
(A) after the date as of which such
individual exhausts all rights to pandemic
emergency unemployment compensation; and
(B) during an extended benefit period that
began on or before the date described in
subparagraph (A).
(b) Pandemic Emergency Unemployment Compensation Account.--
(1) In general.--Any agreement under this section
shall provide that the State will establish, for each
eligible individual who files an application for
pandemic emergency unemployment compensation, an
pandemic emergency unemployment compensation account
with respect to such individual's benefit year.
(2) Amount in account.--The amount established in an
account under subsection (a) shall be equal to 53 times
the individual's average weekly benefit amount, which
includes the amount of Federal Pandemic Unemployment
Compensation under section 2104, for the benefit year.
(3) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for
any week is the amount of regular compensation
(including dependents' allowances) under the State law
payable to such individual for such week for total
unemployment plus the amount of Federal Pandemic
Unemployment Compensation under section 2104.
(4) Coordination of pandemic emergency unemployment
compensation with regular compensation.--
(A) In general.--If--
(i) an individual has been determined
to be entitled to pandemic emergency
unemployment compensation with respect
to a benefit year;
(ii) that benefit year has expired;
(iii) that individual has remaining
entitlement to pandemic emergency
unemployment compensation with respect
to that benefit year; and
(iv) that individual would qualify
for a new benefit year in which the
weekly benefit amount of regular
compensation is at least $25 less than
the individual's weekly benefit amount
in the benefit year referred to in
clause (i),
then the State shall determine eligibility for
compensation as provided in subparagraph (B).
(B) Determination of eligibility.--For
individuals described in subparagraph (A), the
State shall determine whether the individual is
to be paid pandemic emergency unemployment
compensation or regular compensation for a week
of unemployment using one of the following
methods:
(i) The State shall, if permitted by
State law, establish a new benefit
year, but defer the payment of regular
compensation with respect to that new
benefit year until exhaustion of all
pandemic emergency unemployment
compensation payable with respect to
the benefit year referred to in
subparagraph (A)(i).
(ii) The State shall, if permitted by
State law, defer the establishment of a
new benefit year (which uses all the
wages and employment which would have
been used to establish a benefit year
but for the application of this
subparagraph), until exhaustion of all
pandemic emergency unemployment
compensation payable with respect to
the benefit year referred to in
subparagraph (A)(i).
(iii) The State shall pay, if
permitted by State law--
(I) regular compensation
equal to the weekly benefit
amount established under the
new benefit year; and
(II) pandemic emergency
unemployment compensation equal
to the difference between that
weekly benefit amount and the
weekly benefit amount for the
expired benefit year.
(iv) The State shall determine rights
to pandemic emergency unemployment
compensation without regard to any
rights to regular compensation if the
individual elects to not file a claim
for regular compensation under the new
benefit year.
(c) Payments to States Having Agreements for the Payment of
Pandemic Emergency Unemployment Compensation.--
(1) In general.--There shall be paid to each State
that has entered into an agreement under this section
an amount equal to 100 percent of the pandemic
emergency unemployment compensation paid to individuals
by the State pursuant to such agreement.
(2) Treatment of reimbursable compensation.--No
payment shall be made to any State under this section
in respect of any compensation to the extent the State
is entitled to reimbursement in respect of such
compensation under the provisions of any Federal law
other than this section or chapter 85 of title 5,
United States Code. A State shall not be entitled to
any reimbursement under such chapter 85 in respect of
any compensation to the extent the State is entitled to
reimbursement under this section in respect of such
compensation.
(3) Determination of amount.--Sums payable to any
State by reason of such State having an agreement under
this section shall be payable, either in advance or by
way of reimbursement (as may be determined by the
Secretary), in such amounts as the Secretary estimates
the State will be entitled to receive under this
section for each calendar month, reduced or increased,
as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any
prior calendar month were greater or less than the
amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
(d) Financing Provisions.--
(1) Compensation.--
(A) In general.--Funds in the extended
unemployment compensation account (as
established by section 905(a) of the Social
Security Act (42 U.S.C. 1105(a)) of the
Unemployment Trust Fund (as established by
section 904(a) of such Act (42 U.S.C. 1104(a))
shall be used for the making of payments to
States having agreements entered into under
this section.
(B) Transfer of funds.--Notwithstanding any
other provision of law, the Secretary of the
Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise
appropriated) to the extended unemployment
compensation account such sums as the Secretary
of Labor estimates to be necessary to make
payments described in subparagraph (A). There
are appropriated from the general fund of the
Treasury, without fiscal year limitation, the
sums referred to in the preceding sentence and
such sums shall not be required to be repaid.
(2) Administration.--
(A) In general.--There are appropriated out
of the employment security administration
account (as established by section 901(a) of
the Social Security Act (42 U.S.C. 1101(a)) of
the Unemployment Trust Fund, without fiscal
year limitation, such funds as may be necessary
for purposes of assisting States (as provided
in title III of the Social Security Act (42
U.S.C. 501 et seq.)) in meeting the costs of
administration of agreements under this
section.
(B) Transfer of funds.--Notwithstanding any
other provision of law, the Secretary of the
Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise
appropriated) to the employment security
administration account such sums as the
Secretary of Labor estimates to be necessary to
make payments described in subparagraph (A).
There are appropriated from the general fund of
the Treasury, without fiscal year limitation,
the sums referred to in the preceding sentence
and such sums shall not be required to be
repaid.
(3) Certification.--The Secretary shall from time to
time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State
under this subsection. The Secretary of the Treasury,
prior to audit or settlement by the Government
Accountability Office, shall make payments to the State
in accordance with such certification, by transfers
from the extended unemployment compensation account (as
so established) to the account of such State in the
Unemployment Trust Fund (as so established).
(e) Fraud and Overpayments.--
(1) In general.--If an individual knowingly has made,
or caused to be made by another, a false statement or
representation of a material fact, or knowingly has
failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement
or representation or of such nondisclosure such
individual has received an amount of pandemic emergency
unemployment compensation under this section to which
such individual was not entitled, such individual--
(A) shall be ineligible for further pandemic
emergency unemployment compensation under this
section in accordance with the provisions of
the applicable State unemployment compensation
law relating to fraud in connection with a
claim for unemployment compensation; and
(B) shall be subject to prosecution under
section 1001 of title 18, United States Code.
(2) Repayment.--In the case of individuals who have
received amounts of pandemic emergency unemployment
compensation under this section to which they were not
entitled, the State shall require such individuals to
repay the amounts of such pandemic emergency
unemployment compensation to the State agency, except
that the State agency may waive such repayment if it
determines that--
(A) the payment of such pandemic emergency
unemployment compensation was without fault on
the part of any such individual; and
(B) such repayment would be contrary to
equity and good conscience.
(3) Recovery by state agency.--
(A) In general.--The State agency shall
recover the amount to be repaid, or any part
thereof, by deductions from any pandemic
emergency unemployment compensation payable to
such individual under this section or from any
unemployment compensation payable to such
individual under any State or Federal
unemployment compensation law administered by
the State agency or under any other State or
Federal law administered by the State agency
which provides for the payment of any
assistance or allowance with respect to any
week of unemployment, during the 3-year period
after the date such individuals received the
payment of the pandemic emergency unemployment
compensation to which they were not entitled,
in accordance with the same procedures as apply
to the recovery of overpayments of regular
unemployment benefits paid by the State.
(B) Opportunity for hearing.--No repayment
shall be required, and no deduction shall be
made, until a determination has been made,
notice thereof and an opportunity for a fair
hearing has been given to the individual, and
the determination has become final.
(4) Review.--Any determination by a State agency
under this section shall be subject to review in the
same manner and to the same extent as determinations
under the State unemployment compensation law, and only
in that manner and to that extent.
(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 3801 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 Pandemic
Unemployment Fraud Enforcement Act.
(f) Definitions.--In this section, the terms
``compensation'', ``regular compensation'', ``extended
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
(g) Applicability.--An agreement entered into under this
section shall apply to weeks of unemployment--
(1) beginning after the date on which such agreement
is entered into; and
(2) ending on or before September 6, 2021.
* * * * * * *
VII. DISSENTING VIEWS
Ways and Means Democrats strongly support bringing to
justice the criminals who stole from our unemployment system
during the pandemic. We have consistently supported Department
of Labor Inspector General Larry Turner as he and his team
secured 1,400 convictions and over a billion dollars in court-
ordered restitution.
Two years ago, we offered to work with our Republican
colleagues to extend the statute of limitations at IG Turner's
request. They instead chose to rush to the House floor with
legislation that experts said would not correctly extend the
statute of limitations but did cut $2 billion from the
Department of Labor's fraud-fighting budget and pressure states
to investigate and prosecute innocent workers. At that markup,
Ways and Means Republicans rejected amendments to protect
Social Security recipients, farmers, and parents from this
senseless harassment.
We also opposed Republican cuts to the Office of the
Inspector General (OIG) budget that forced it to lay off staff
and slow its work, which increased the number of cases at risk
of not being completed before they reached the statute of
limitations.
Less than two weeks before H.R. 1156 was introduced and
considered in Committee, President Trump fired IG Turner, along
with 16 other Senate-confirmed agency Inspectors General.
Inspectors General are primary prosecutors of fraud and
instruments of agency accountability to the American people.
Just before our markup, the President fired yet another agency
watchdog for daring to criticize Administration actions. The
silence from our colleagues about the firing of IG Turner, a
respected public official that House Republicans were publicly
praising just a few weeks before his firing, has been
deafening.
This bill would give the OIG five additional years to file
charges for alleged fraud in the pandemic UI programs, whether
the charges are against a criminal mastermind who used stolen
Social Security numbers to steal millions of dollars or a
struggling parent who was accidentally overpaid by an
overworked state UI system. IG Turner had laid out and was
following a clear plan to go after real fraud and criminal
rings, not innocent people. His firing, and that of 17 other
Senate-confirmed watchdogs, coupled with the flood of career
prosecutors quitting rather than obeying illegal orders by the
Trump Administration, makes us unsure how the authority would
be used.
In addition to the risk of illegal prosecution and
harassment, this bill would cut a small but important source of
anti-fraud funding at the Department of Labor. Although the
funding is technically ``unobligated,'' the Department has been
using it to cover costs associated with providing free identity
verification tools to states and also providing other technical
assistance to states to prevent fraud and ensure timely access
to benefits. Cutting that funding might mean it would run out,
increasing fraud in the future.
At our markup, Reps. Chu and DelBene tried to offer an
amendment to extend the statute of limitations for six months
and then provide the extension to 10 years once the President
reinstated IG Turner or followed the law to replace him with a
Senate-confirmed successor who could be trusted to use
additional prosecution power fairly. Republicans refused to
allow the amendment to be considered.
We regret that we are unable to support H.R. 1156. However,
we are open to Republicans who decide to join us in fighting
fraud and protecting American workers.
Richard E. Neal,
Ranking Member.
DISSENTING VIEWS
We held a markup last Congress where this committee looked
at unemployment insurance fraud. I offered an amendment then
which would have extended that statute of limitations for those
who committed unemployment insurance fraud during the pandemic.
Larry Turner, the respected Inspector General of the
Department of Labor, who was wrongfully terminated by this
administration, made a compelling case to us that it would take
his investigators and prosecutors time to investigate and build
strong legal cases for some of the worst fraud of the
pandemic--sophisticated criminal rings that used stolen
identity and bank account information to steal millions, or
even billions of taxpayer dollars.
IG Turner and his team also delivered on their promises.
They focused on bringing the worst criminals to justice, and
have secured 1,400 convictions and over a billion dollars in
court-ordered restitution. I'd like to enter the COVID-19 Fraud
Enforcement Task Force report into the record. I later withdrew
that amendment upon agreement with Chairman Smith that we would
work together to address this issue.
Throughout the last two years, Republicans and Democrats
came to an agreement: extend the statute of limitations, that's
it. It even made it into the Unemployment Insurance Integrity
and Accessibility Act, a bipartisan bill negotiated by Crapo-
Wyden.
However, while this bill extends the statute of
limitations, it rescinds critical funding we provided in the
American Rescue Plan that the Department of Labor has been
using on an ongoing basis to fund, among other things, free
state access to two critical identify verification tools--
login.gov and in-person identity verification at the Post
Office. These tools are used by the Department of Labor and
states to confirm identity and prevent fraud. So, while we are
extending the time period for which law enforcement can
prosecute those who committed fraud, we are taking away funding
to prevent future fraud.
I am disappointed that yet another bipartisan agreement has
been walked back by my Republican colleagues.
I cannot support legislation that solves one problem but
creates another. I urge my colleague to vote no unless changed.
Mike Thompson.
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