Committee uncovers over $100B in COVID unemployment insurance fraud, taxpayers suffer.

The House Oversight Committee discovered that American taxpayers lost over $100 billion due to fraud and incorrect payments resulting from temporary unemployment insurance programs established in response to COVID-19.

The House Oversight Committee's report on fraud in pandemic unemployment relief programs was obtained by Planet Chronicle Digital following a months-long investigation.

The committee's report reveals that states, including California, New York, and Pennsylvania, processed and administered pandemic unemployment insurance claims with little supervision.

Improper and fraudulent payments resulted in billions of taxpayer dollars being lost, which is likely to never be recovered due to a lack of oversight, as stated by the committee.

The Department of Labor's Office of Inspector General estimated that at least $191 billion in pandemic unemployment insurance payments could have been improperly paid, with a "significant portion attributed to fraud."

Approximately $6.8 billion of the funds have been recovered by states, according to the committee's findings.

The committee discovered that recipients of benefits were not required to present evidence of actively seeking work in order to maintain their benefits.

The program was more prone to fraud during the first nine months as claimants did not need to present any evidence of earnings. However, in December 2020, when Congress renewed the program, states mandated that applicants submit proof of prior employment and wages.

The improper payment rate for the program, as reported by the Department of Labor, was 35.9%.

The Biden-Harris administration prolonged pandemic unemployment insurance programs and benefits for an additional six months in March 2021, despite states and businesses being open and the vaccine rollout being underway.

The committee discovered that 26 states ended federal benefits early due to labor shortages, which they attributed to the excessive federal benefits.

READ THE REPORT – APP USERS, CLICK HERE:

The committee discovered that organized crime significantly contributed to unemployment insurance fraud by exploiting weaknesses in the existing system.

"The report reveals that organized criminal gangs, prison inmates, and those acting on their behalf filed fraudulent claims in multiple states. Additionally, insiders, including those who worked for state workforce agencies, conspired with organized crime factions and other individuals to defraud state UI programs. Despite this, the states did little to stop them."

James Comer, R-Ky., the House Oversight Committee Chairman, accused Democrats and the Biden-Harris administration of committing fraud by spending trillions of dollars under the pretense of pandemic relief.

Comer stated that during his committee's initial hearing on the issue, it was revealed that "unchecked spending put taxpayer funds, including UI programs, at risk of substantial waste, fraud, and misuse."

Republicans were dedicated to uncovering the fraudulent use of taxpayer funds while Democrats remained indifferent, according to Comer.

Comer stated that his committee's report contains suggestions to prevent future UI programs from experiencing a similar fate, which relied on taxpayer funding.

Oversight Republicans remain committed to eliminating waste, fraud, abuse, and mismanagement in the federal government and safeguarding American taxpayers, as stated by Comer.

For future UI benefits programs, the government should mandate claimants to submit their proof of work before their eligibility is assessed.

The report recommends that unemployment insurance be linked to employment.

The committee advises that future programs mandate state workforce agencies to verify claimants against federal databases, including prisoner databases.

The committee proposed that Congress extend the statute of limitations for fraud programs related to pandemic UI programs, which will expire in March 2025, to ensure that criminals who defrauded taxpayers are brought to justice.