Cape News

Witnesses at a recent hearing of the Ways and Means Work and Welfare Subcommittee urged Congress to extend the statute of limitations for prosecuting CARES Act-related unemployment insurance fraud. The current five-year limit is set to expire on March 27, 2025, unless Congress acts. Presently, there are 157,000 open UI fraud complaints and over 1,648 ongoing investigations by the Department of Justice.

Work and Welfare Chairman Darin LaHood highlighted a conviction in Pennsylvania involving $59 million stolen in public benefits. He emphasized that allowing the statute of limitations to expire would hinder justice for similar cases and prevent the recovery of funds for taxpayers.

An estimated $100 to $135 billion in UI benefits were lost during the COVID-19 pandemic, with only $5 billion recovered so far. The House previously passed bipartisan legislation aimed at providing states with tools to recover stolen benefits.

The hearing also revealed that groups responsible for pandemic-era thefts are now targeting disaster benefits meant for victims of Los Angeles fires and North Carolina hurricanes. This ongoing issue underscores the need for federal action to safeguard taxpayer funds.

Rep. Darin LaHood stated: “For years, this committee has been sounding the alarm on fraud from organized criminal organizations, particularly from a number of hostile nations, Russia, China and others."

Haywood Talcove explained: "What I find incredibly frustrating…it’s the same groups doing the same thing…They use it for drugs in our communities; they use it for terrorism."

Failing to extend the statute would leave many criminals unpunished as noted by Rep. Rudy Yakym: “The Department of Justice has 1,648 open cases... Do you believe that there’s still more unemployment fraud carried over from the pandemic out there that could result in prosecution or recouping funds if we were to extend the statute of limitations?” Talcove responded affirmatively.

Efforts are underway to improve safeguards around federal benefits like UI. Last year’s BRIDGE for Workers Act provides states flexibility in offering reemployment services as part of efforts against improper payments.

Anna Hui expressed gratitude: “Thank you Chairman LaHood and Ranking Member Davis for actually getting the BRIDGE for Workers Act passed... This program... builds in that incentive to make sure that workforce services...are actually being taken.”