Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Congressman Jason Smith Official U.S. House headshot
Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Congressman Jason Smith Official U.S. House headshot
The Work and Welfare Subcommittee held its first hearing of the new Congress, focusing on prosecuting fraudsters who have stolen billions in unemployment benefits from American workers. Chairman Darin LaHood, representing Illinois' 16th District, led the session aimed at understanding how Congress can hold these individuals accountable by extending the statute of limitations for CARES Act-related unemployment insurance fraud. This statute is set to expire on March 27, 2025.
LaHood highlighted past oversight efforts by the Ways and Means Committee that revealed vulnerabilities in the UI program during the COVID-19 pandemic. He noted a previous hearing with government witnesses from GAO and the Pandemic Response Accountability Committee, which exposed issues with outdated state systems and weak online security.
In May 2023, the House passed the "Protecting Taxpayers and Victims of Unemployment Fraud Act," which proposed extending the statute of limitations by five years and incentivizing states to pursue fraud recovery. However, these reforms did not become law.
According to GAO estimates, between $100-$135 billion was lost to fraud during the pandemic in unemployment insurance alone. Only $5 billion has been recovered so far. The Department of Justice has charged over 600 criminal cases related to UI fraud with losses exceeding $300 million. Over 1,600 criminal matters remain open as of January 28th this year.
LaHood emphasized the need for Congressional action to extend the statute of limitations and provide law enforcement with necessary tools and resources. He also raised concerns about international crime rings targeting UI programs through sophisticated schemes.
He cited a recent case where a Pennsylvania man pled guilty to obtaining $59 million in public benefits and laundering proceeds to China as an example of such schemes. As a member of the House Select Committee on China, LaHood expressed deep concern over attacks on U.S. institutions by hostile nations like China.
Concluding his statement, LaHood reiterated his commitment to bringing accountability back to Washington and recovering funds for taxpayers while thanking witnesses for their participation in addressing this critical issue.
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