Lankford Introduces Stop Unemployment Fraud Act to Protect Taxpayers and Strengthen Program Integrity

OKLAHOMA CITY, OK - US Senator James Lankford (R-OK), a founding member of the Department of Government Efficiency (DOGE) Caucus, introduced the Stop Unemployment Fraud Act alongside Congressman Lloyd Smucker (R-PA-16) to strengthen safeguards against fraud in the unemployment insurance system and protect taxpayer dollars.

"Making the government more efficient isn't a partisan issue, it's an American issue," said Lankford. "During COVID, fraudsters exploited loopholes in the unemployment system and stole billions while taxpayers were left with the bill. This legislation strengthens verification, improves coordination between states, and ensures benefits go to the Americans who actually qualify, not criminals exploiting the system."

"Bad actors stole more than $100 billion in pandemic-era unemployment benefits, and recent discoveries in Minnesota illustrate that vulnerabilities in the unemployment system continue to persist," said Smucker. "Congress bears ultimate responsibility for protecting taxpayer dollars. The Stop Unemployment Fraud Act will help states recover stolen funds and strengthen safeguards to ensure the long-term integrity of this program."

The Stop Unemployment Fraud Act would:

• Strengthen identity verification requirements for unemployment claimants
• Require states to cross-check claims using fraud detection systems to prevent duplicate or improper payments
• End the "pay and chase" model by ensuring benefits are not issued before eligibility is verified
• Strengthen work-search requirements and federal oversight of state compliance
• Allow states to retain a portion of recovered overpayments to invest in fraud prevention and program administration

Joining Lankford and Smucker in introducing the legislation are Chairman of the Senate Finance Committee Mike Crapo (R-ID), Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee Bill Cassidy (R-LA), and Senator Steve Daines (R-MT) along with Representatives Adrian Smith (R-NE-03), Beth Van Duyne (R-TX-24), Randy Feenstra (R-IA-04), Max Miller (R-OH-07), Claudia Tenney (R-NY-24), Mike Kelly (R-PA-16), Jodey Arrington (R-TX-19), Blake Moore (R-UT-01), Nathaniel Moran (R-TX-01), Carol Miller (R-WV-01), Vince Fong (R-CA-20), and Aaron Bean (R-FL-04).

Outside groups supporting the legislation are the National Taxpayers Union, Americans for Tax Reform, US Chamber of Commerce, America First Policy Institute, Taxpayer Protection Alliance, and the National Federation of Independent Business (NFIB).

Background

Lankford has led multiple efforts in Congress to increase transparency and accountability in federal spending. Earlier this year, he released the latest edition of his government waste report, Federal Fumbles. He also championed the Taxpayers' Right-to-Know Act, which resulted in the launch of the Federal Program Inventory (FPI) in 2024, so Americans can better see how their tax dollars are being spent.

In 2024, Lankford introduced the Fraudulent COVID Funds Recovery Act, legislation to extend the statute of limitations for prosecuting pandemic-era fraud from five years to ten years, giving law enforcement more time to investigate fraud and recover stolen taxpayer dollars tied to COVID relief programs.

You can view the full bill text HERE. You can learn more about the legislation in the Daily Caller HERE.

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