Mr. Speaker, I rise today in support of H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act, which I was proud to introduce with the gentleman from New York (Mr. Suozzi), my bipartisan partner. This commonsense legislation creates…
Mr. Speaker, I rise today in support of H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act, which I was proud to introduce with the gentleman from New York (Mr. Suozzi), my bipartisan partner.
This commonsense legislation creates a Federal task force to work with States to recover unspent Federal pandemic unemployment funds that remain frozen in financial institutions and return those taxpayer dollars to the U.S. Treasury, but Congress must act quickly.
Last December, the Department of Labor's Office of Inspector General issued two fraud alerts identifying nearly $1 billion in unspent Federal unemployment funds frozen by banks because of suspected fraud. Those funds are now sitting on millions of prepaid debit cards that States used to distribute supplemental unemployment benefits during the pandemic.
More than 6 years later, many of these accounts have simply been forgotten. They remain unreconciled by State workforce agencies and, in many cases, have even been transferred to State unclaimed property divisions, making recovery even that much more difficult. Without congressional action, hundreds of millions of taxpayer dollars could be lost permanently.
The Committee on Ways and Means has made combating pandemic unemployment fraud a top priority. Earlier this year, the Subcommittee on Work and Welfare held a hearing that examined the scope of this problem and the consequences of failing to act.
During that hearing, the Department of Labor Inspector General testified that the fraud alerts covered prepaid debit card accounts across 21 States and that more than $200 million in suspected fraudulent funds have already been transferred into State unclaimed property programs.
H.R. 8873 addresses this problem by establishing a Federal task force, led by a national recovery coordinator, to partner with States in identifying, recovering, and returning those Federal unemployment dollars to taxpayers.
The bill also extends the statute of limitations for prosecuting pandemic unemployment fraud from 5 years to 10 years. This provision mirrors H.R. 1156, the Pandemic Unemployment Fraud Enforcement Act, which passed the House last year with bipartisan support.
Federal investigators are still actively pursuing hundreds of pandemic fraud cases. Since October 2025 alone, the Department of Labor Inspector General has brought 59 criminal matters to prosecution, resulting in charges against 131 individuals and more than $16 million in recoveries. Extending the statute of limitations ensures prosecutors have the time they need to hold fraudsters accountable.
This legislation has earned bipartisan support from the National Association of State Workforce Agencies, the U.S. Chamber of Commerce, the Taxpayers Protection Alliance, and Strategic Services on Unemployment & Workers' Compensation.
Every dollar stolen through fraud is a dollar that cannot serve hardworking Americans or reduce our Nation's debt. It is not too late to recover these taxpayer funds, and it is not too late to hold criminals accountable. H.R. 8873 gives us the tools to do both.
Mr. Speaker, I urge my colleagues to support this bipartisan legislation.