WASHINGTON, D.C. – Federal law enforcement agencies will have additional time and resources to go after criminals that stole an estimated $100 to $135 billion in pandemic-era unemployment insurance (UI) benefits under legislation introduced by Ways and Means Committee Chairman Jason Smith (MO-08) and cosponsored by all 25 Republican Members of the Committee. The Pandemic Unemployment Fraud Enforcement Act (H.R. 1156) extends the statute of limitations for criminal prosecution and civil enforcement actions in pandemic unemployment programs from 5 to 10 years, providing an additional runway to help recoup billions for American taxpayers. Under current law, the statute of limitations for prosecuting such fraud will expire on March 27, 2025. After this date, Congress cannot retroactively change the statute of limitations on criminal prosecutions.
Ways and Means Committee Chairman Smith issued the following statement:
“Failure to extend this statute of limitations would mean that the thousands of criminals and international criminal organizations that perpetrated the greatest theft of American taxpayer dollars in history will never be brought to justice. Hundreds of billions of dollars – in one estimate as much as $400 billion – will be lost forever, and the working families that were victims of this crime will never see the benefits they were promised. Given the volume of existing cases currently under investigation, there is no reason that Congress should not act to ensure law enforcement stays on this beat and goes after these criminals. Taking them off the streets will not only ensure justice is done but will also help prevent those same crime organizations from being free to defraud the American taxpayer once again.”
Background:
- The Government Accountability Office has estimated as much as $100 to $135 billion in jobless benefits were lost to fraud during the pandemic.
- Other estimates range as high as $400 billion.
- Only $5 billion has been recovered, or less than 4 percent.
- According to the Department of Justice COVID-19 Fraud Enforcement Task Force, 600 criminal UI fraud cases have been charged with associated losses of over $300 million.
- There are currently 1,648 open, uncharged criminal matters identified with COVID-19 fraud.
- The Department of Labor has reported at least 157,000 open UI fraud hotline complaints and reports more than 1,000 open field investigations.
- In 2022, Congress extended the statute of limitations for fraud in the Paycheck Protection Program and Economic Injury and Disaster Loans to 10 years.