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June 29, 2026
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Download official House Record PDFReturn to issue contextMr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 8873) to recover unclaimed pandemic-era unemployment compensation funds held by financial institutions or escheated to State unclaimed property administrators, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 8873
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Recover COVID Unemployment
Fraud in Banks Act”.
SEC. 2. NATIONAL RECOVERY COORDINATOR AND TASK FORCE.
(a) In General.—
(1) Designation of national recovery coordinator.—The
Secretary of Labor, in consultation with the Secretary of the
Treasury, the Inspector General of the Department of Labor,
and the Attorney General, shall designate an official to
serve as National Recovery Coordinator to oversee and
coordinate the activities and responsibilities of the task
force described in paragraph (2).
(2) Task force establishment.—Not later than 30 days after
the date of enactment of this Act, the National Recovery
Coordinator shall convene a task force to be named the
“Recover Pandemic Unemployment Funds in Banks Task Force”
(in this section, the “Task Force”).
(3) Members.—The Task Force shall include—
(A) the Attorney General, or their designee;
(B) the Secretary of Labor, or their designee;
(C) the Inspector General of the Department of Labor, or
their designee;
(D) the Secretary of the Treasury, or their designee;
(E) the Chairman of the Federal Deposit Insurance
Corporation, or their designee; and
(F) the Director of the Consumer Financial Protection
Bureau, or their designee.
(b) Task Force Responsibilities.—It shall be the
responsibility of the Task Force to—
(1) coordinate with applicable State agencies to identify
Federal pandemic unemployment compensation payments issued on
prepaid debit cards that—
(A) are held by financial institutions, and other entities
identified by the Inspector General of the Department of
Labor, contracted by a State agency to transfer such payments
to unemployment claimants; or
(B) were transferred by such an entity to, and are
currently held by, a State agency responsible for unclaimed
property;
(2) coordinate with appropriate Federal agencies to develop
model processes which comply with relevant Federal and State
laws and result in cost-effective recovery of the payments
identified under paragraph (1), including issuing guidance,
in coordination with the Secretary of Labor, to
administrators of State agencies responsible for
administering Federal unemployment compensation payments or
determining fraud in such programs, including—
(A) guidelines for—
(i) reviewing such payments and determining if such a
payment was an improper payment;
(ii) determining whether cost-effective recovery of an
improper payment is possible, including a threshold, or a
methodology for calculating a dollar threshold, for cost-
effective recovery; and
(iii) actions, consistent with State law, to be taken by
the State agency if an improper payment is determined to be
the result of fraud;
(B) assurances that, subject to section 303(g) of the
Social Security Act (42 U.S.C. 503(g)), any action taken in
relation to a determination that a payment identified under
paragraph (1) is an improper payment shall be taken under
State law;
(C) a model notice and information, developed in
coordination with the Consumer Financial Protection Bureau,
about resources available to individuals whose identity
information is determined to have been fraudulently used to
obtain Federal pandemic unemployment compensation;
(D) information on the legal pathways described under
paragraphs (3) and (4) for recovery of payments that are
improper payments held by financial institutions and agencies
described in paragraph (1); and
(E) procedural requirements for State agencies to follow
when funds are returned by such institutions that provides a
standardized methodology to return funds to the Federal
Government;
(3) issue guidance, in coordination with the Comptroller of
the Currency and Chairman of the Federal Deposit Insurance
Corporation, to financial institutions described in paragraph
(1) that are holding payments that are improper payments that
provides information on a legal pathway, consistent with
banking regulations and applicable contracts with State
agencies, for returning such payments to the appropriate
State agency; and
(4) issue guidance, in coordination with the Secretary of
Treasury, to administrators of State agencies responsible for
unclaimed property on the obligations of such agencies to
review and return payments described in paragraph (1)(B) to
the appropriate State agency.
(c) Consultation Requirement.—In developing the guidance
required to be issued under paragraphs (2), (3), and (4) of
subsection (b), the Task Force shall consult with State
agencies and incorporate best practices from previous
attempts by any such States to recover payments determined to
be improper payments from institutions described in paragraph
(1)(A) of such subsection.
(d) State Administrative Costs.—The Secretary of Labor
shall reimburse States for all administrative costs incurred
as a result of coordination with the Task Force by reason of
an agreement under section 2102, 2104, or 2107 of the CARES
Act (15 U.S.C. 9201; 9203; 9205).
(e) Definitions.—Except as otherwise specified, in this
section:
(1) Federal pandemic unemployment compensation.—The term
“Federal pandemic unemployment compensation” means a
payment of—
(A) pandemic unemployment assistance under section 2102(b)
of the CARES Act (15 U.S.C. 9021(b));
(B) Federal Pandemic Unemployment Compensation and Mixed
Earner Unemployment Compensation under section 2104(b)(1) of
the CARES Act (15 U.S.C. 9023(b)(1)); and
(C) pandemic emergency unemployment compensation under
section 2107(a)(2) of the CARES Act (15 U.S.C. 9025(a)(2)).
(2) Improper payment.—The term “improper payment” means
any amount of a pandemic unemployment payment to which the
individual is not entitled.
(3) State; state agency; state law.—The terms “State”,
“State agency”, and “State law” have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 3. EXTENSION OF THE STATUTE OF LIMITATIONS FOR PANDEMIC
UNEMPLOYMENT FRAUD BY INDIVIDUALS UNDER CERTAIN
UNEMPLOYMENT PROGRAMS.
(a) Pandemic Unemployment Assistance.—Section 2102 of the
CARES Act (15 U.S.C. 9021) is amended—
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
“(h) Statute of Limitations.—
“(1) In general.—Notwithstanding any other provision of
law and subject to paragraph (2), any criminal prosecution or
civil enforcement action for a violation of, or conspiracy to
violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United
States Code, with respect to any unemployment compensation
claim funded in whole or in part by pandemic unemployment
assistance under this section shall be brought not later than
10 years after the date of the violation or conspiracy.
“(2) Exception.—Paragraph (1) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.”.
(b) Federal Pandemic Unemployment Compensation and Mixed
Earner Unemployment Compensation.—Section 2104(f) of the
CARES Act (15 U.S.C. 9023(f)) is amended by adding at the end
the following new paragraph:
“(5) Statute of limitations.—
“(A) In general.—Notwithstanding any other provision of
law and subject to subparagraph (B), any criminal prosecution
or civil enforcement action for a violation of, or conspiracy
to violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any unemployment compensation claim funded in
whole or in part by Federal Pandemic Unemployment
Compensation or Mixed Earner Unemployment Compensation under
this section shall be brought not later than 10 years after
the date of the violation or conspiracy.
“(B) Exception.—Subparagraph (A) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.”.
(c) Pandemic Emergency Unemployment Compensation.—Section
2107(e) of the CARES Act (15 U.S.C. 9025(e)) is amended by
adding at the end the following new paragraph:
“(5) Statute of limitations.—
“(A) In general.—Notwithstanding any other provision of
law and subject to subparagraph (B), any criminal prosecution
or civil enforcement action for a violation of, or conspiracy
to violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344,
1349, 1956, or 1957 of title 18, United States Code, or
section 3729 or 3802 of title 31, United States Code, with
respect to any unemployment compensation claim funded in
whole or in part by Pandemic Emergency Unemployment
Compensation under this section shall be brought not later
than 10 years after the date of the violation or conspiracy.
“(B) Exception.—Subparagraph (A) shall not apply with
respect to a criminal prosecution or civil enforcement action
if the statute of limitations applicable to such criminal
prosecution or civil enforcement action expired prior to the
date of enactment of the Recover COVID Unemployment Fraud in
Banks Act.”.
(d) Effective Date.—The amendments made by section Act
shall take effect on the date of enactment of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Missouri (Mr. Smith) and the gentleman from New York (Mr. Suozzi) each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and submit extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of the Recover COVID Unemployment Fraud in Banks Act led by my Ways and Means colleagues Representative Beth Van Duyne and Representative Tom Suozzi.
been shining a spotlight on the fraud epidemic, even from her earliest days serving on the Ways and Means Committee.
According to the Government Accountability Office, between $100 billion to $135 billion in COVID-era unemployment benefits are estimated to have been taken by fraudsters using eligibility loopholes and stolen identities.
found that nearly $1 billion of fraudulent COVID-era unemployment benefits is currently frozen and being held in financial institutions across the country. At one financial institution, the highest balance on a single card is $76,000. At a second financial institution, it is $56,000.
insurance fraud has already begun to expire, limiting the amount of money law enforcement can return or the number of criminals that they can bring to justice. Time is of the essence to recover the money stolen and rightfully owed to taxpayers.
with States to return the fraudulent unemployment benefits sitting in banks to American taxpayers.
for States to reclaim funds in a cost-efficient way, issue guidance to financial institutions on the legal path for returning funds, and establish due process protections for claimants whose identity was stolen as part of the crime.
era unemployment insurance fraud prosecution from 5 to 10 years. As of last year, the Department of Labor reported more than 150,000 open complaints, and the Department of Justice had more than 1,648 open investigations regarding pandemic unemployment fraud. Prosecutors need more time to hold criminals accountable.
another fraudster will get away with stealing money that rightfully belongs to taxpayers and individuals in need.
the Ways and Means Committee. This bill has also received the endorsement from the National Association of State Workforce Agencies, the Taxpayers Protection Alliance, and the Strategic Services on Unemployment and Workers' Compensation.
Mr. Speaker, I urge my colleagues to provide a similar level of support and advance this to the Senate and President Trump's desk.
Mr. Speaker, I reserve the balance of my time.
Mr. SUOZZI. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act.
Representative Van Duyne for sponsoring this bipartisan, commonsense bill that will help root out fraud, protect vulnerable Americans, and help return stolen funds to the States who were robbed.
country. Everyone was vulnerable, and hardworking Americans lost their jobs, homes, and loved ones overnight.
assistance to make ends meet. Twenty-two million workers lost their jobs, and about a quarter of all U.S. workers received unemployment benefits.
it on prepaid debit cards through contracts with banks. These benefits were meant to help families afford their basic needs during the lockdown. These benefits kept more than 5 million people out of poverty as they faced the threat of mortgage defaults, utility shutoffs, and hunger.
desperate for reliable information, criminals and fraudsters exploited those vulnerabilities and attacked unsuspecting Americans. In fact, domestic and international cybercrime rings weaponized stolen identities. That is, they stole people's identities. They used loopholes to actually apply for unemployment insurance using the fake identities that they had stolen, and they applied for this Federal pandemic aid.
sitting untouched in debit cards. Even worse, investigators estimate that the majority of fraudulent debit cards are as a result of identity theft, and many of the victims have no idea that they were even targeted. These are working families and senior citizens.
system. Most importantly, they wait to withdraw the funds from these debit cards until the statute of limitations expires on each case and, therefore, avoid the legal consequences for stealing.
2021,
banks experienced $212 billion in suspicious activity related to identity. That number increased to $394 billion in transactions in 2023.
crimes is 5 years, meaning that consequences began expiring for some of these criminals in March of 2025. This has already resulted in the loss of hundreds of millions of dollars of taxpayer funds. We have to act now, before we lose these millions of dollars.
Americans from illegal scams and identity theft. We have an opportunity to take that action today by supporting H.R. 8873, Recover COVID Unemployment Fraud in Banks Act.
cases, where it hasn't already expired, and create a task force to support recovery of those funds identified by the inspector general that can be recovered cost-effectively, without diverting time or money from future fraud protection.
detected, in addition to recovering the money, this bill ensures that the victim of the theft is notified and provided with resources.
victim's identity to apply for pandemic unemployment insurance, chances are that that criminal is going to use that stolen identity to commit other crimes as well.
Office of the Inspector General to complete at least 300 current investigations into large-scale unemployment insurance fraud and potentially recover those funds for the taxpayer.
on the most cost-effective prevention and recovery efforts. Money recovered by the States will help ensure that State unemployment insurance systems are able to prevent fraud and pay earned benefits on time and accurately to unemployed Americans in the future.
{time} 1440
This is especially important right now. Gas prices are too high. Grocery prices are too high. Healthcare prices are too high, and too many Americans live in fear of losing their jobs and being unable to afford their families' basic needs.
accountable, and keep Americans and their identities safe from harm online.
Mr. Speaker, I once again thank Representative Van Duyne for sponsoring this commonsense bill, and I urge all Members to support this legislation. I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield such time as she may consume to the gentlewoman from Texas (Ms. Van Duyne).
Ms. VAN DUYNE. 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.
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.
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.
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.
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.
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.
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.
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.
Association of State Workforce Agencies, the U.S. Chamber of Commerce, the Taxpayers Protection Alliance, and Strategic Services on Unemployment & Workers' Compensation.
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.
Mr. SUOZZI. Mr. Speaker, I have no further speakers, and I am prepared to close.
Mr. Speaker, I yield myself the balance of my time.
H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act, is a commonsense bill that helps eliminate waste, fraud, and abuse; recovers stolen taxpayer dollars; and protects some of our most vulnerable citizens, including older Americans.
unemployment, high gas and grocery prices, and seniors are forced to choose between food, rent, and healthcare, we can't allow fraudsters to get away with stealing funds meant to help hardworking families.
accountable, and protect Americans and their identities from being exploited ever again.
I again thank the gentlewoman from Texas (Ms. Van Duyne), my colleague, for working in a bipartisan and collaborative fashion on this commonsense legislation. I urge my colleagues to support this bipartisan bill.
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I am glad the Committee on Ways and Means was able to come together in bipartisan unity and bring this important piece of legislation to the floor.
critical social safety net so many rely on, including unemployment insurance.
To date, only $6 billion of stolen UI benefits have been recovered.
Americans in the first place. It will be equally shameful if Congress doesn't pass the bipartisan bill, recover the fraudulent unemployment benefits we know are sitting in banks, and prosecute more fraudsters.
bill, Representatives Van Duyne and Suozzi, for their leadership in fighting fraud.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Missouri (Mr. Smith) that the House suspend the rules and pass the bill, H.R. 8873, as amended.
The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.