WASHINGTON, D.C. – Sixteen days before the statute of limitations to prosecute the theft of COVID-era unemployment insurance (UI) fraud expires, the U.S. House of Representatives with bipartisan support, voted to extend the deadline from five years to ten years to ensure criminals that stole UI benefits are brought to justice and to recover billions in taxpayer dollars. The legislation, the Pandemic Unemployment Fraud Enforcement Act, helps fulfill President Trump’s mandate to recover taxpayer money lost to waste, fraud, and abuse. Government estimates show between $100 to $135 billion in UI benefits were stolen by fraudsters, gang members, prisoners, international crime rings, and hackers from Nigeria during the pandemic. Other estimates peg the total amount of taxpayer dollars stolen at $400 billion. Of that, only $5 billion has been recovered so far. 

The statute of limitations for prosecuting pandemic unemployment benefits starts to expire on March 27, jeopardizing ongoing prosecutions and future efforts to pursue these criminals. According to the Department of Labor and Department of Justice, there are over 157,000 open UI fraud hotline complaints and more than 1,648 open, uncharged COVID-19 fraud investigations. The bill allows law enforcement to prosecute these and new cases on behalf of taxpayers. 

Ways and Means Committee Chairman Jason Smith (MO-08)highlighted the consequences for taxpayers if this bill doesn’t reach President Trump’s desk in time: 

“This is a must-pass bill. The statute of limitations for these investigations starts to run out in 16 days, on March 27th. If we don’t extend it, the criminals who stole money from the pockets of taxpayers – and continue to do so to this day will get away…A no vote is a vote to allow these criminals to keep what they stole.”

When the Ways and Means Committee considered the legislation earlier this year, every single committee Democrat voted against the bill. However, on the House floor 83 Democrats voted in favor of the bill. 

Pandemic Unemployment Fraud Enforcement Act (H.R. 1156)
Extends the statute of limitations for prosecuting COVID-era unemployment insurance fraud from five to 10 years.

• Department of Justice has 1,648 open, uncharged COVID-19 criminal matters and the Labor Department has reported 157,000 open UI fraud hotline complaints. Failure to extend the statute of limitations will result in criminals going unpunished and forgoing recovery of billions in taxpayer dollars.
• In 2022, Congress similarly extended the statute of limitations for prosecuting fraud in the Paycheck Protection Program and Economic Injury and Disaster Loans to 10 years. 
• Additional state administrative costs are offset by rescinding $5 million in unobligated prior years funds made available to the Department of Labor for fraud prevention. 

Click here to read a fact sheet on the bill.