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

WASHINGTON, DC - Rep. Lloyd Smucker (PA-11), Vice Chair of the Budget Committee, introduced the Stop Unemployment Fraud Act alongside US Senator James Lankford (R-OK) to strengthen safeguards against fraud in the unemployment insurance system and protect taxpayer dollars.

"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."

"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."

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 Rep. Smucker and Sen. Lankford in introducing the legislation are 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), Rudy Yakym (R-IN-02), and Ron Estes (R-KS-24); as well as 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).

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).

"Brought to light by recent investigations, billions of taxpayer dollars are being paid to people who should not be receiving payments. Addressing fraudulent claims to unemployment benefits ensures that Americans' hard-earned tax dollars are being spent properly. This bill offers a common-sense approach to confront waste, fraud, and abuse in the UI system. Taxpayers should not have to foot the bill for the fiscal malpractice of federal and state regulators. Rep. Smucker's bill is a welcomed solution to address this rampant issue." - David Williams, President, Taxpayer Protection Alliance

"The U.S. Chamber of Commerce supports the Stop Unemployment Fraud Act. This bill will strengthen the integrity of the unemployment insurance system, combat fraud so that benefits are paid to legitimate claimants, and safeguard the unemployment trust funds that underpin a strong safety net for workers now and in the future." - Rodney Davis, Head of Government Affairs, U.S. Chamber of Commerce

"Workers, employers, and above all taxpayers deserve an unemployment benefit system that's fiscally responsible, and it all starts with better program oversight. The Stop Unemployment Fraud Act is a thoughtful, measured response to both preventing and recovering improper payments that every House and Senate Member should be able to support. Protecting taxpayers is a never-ending job, but now is the ideal time to pass the Stop Unemployment Fraud Act, to get ahead of future problems with jobless claims. NTU is proud to lend its full support to this important legislation." -Pete Sepp, President, National Taxpayers Union