Whereas, During COVID-19, states across the country saw unprecedented levels of fraud in pandemic unemployment programs. These programs were targeted by organized crime rings and fraudsters, with losses estimated to be in the hundreds of billions of dollars nationwide; and
Whereas, Michigan was not immune from fraudulent claims for pandemic unemployment benefits. A 2021 report estimated that the state’s Unemployment Insurance Agency paid 8.4 to 8.51 billion dollars in potentially fraudulent unemployment benefits during COVID-19. This included 2.7 to 2.8 billion dollars paid in claims involving likely imposter fraud and 5.6 to 5.7 billion dollars paid in claims involving likely intentional misrepresentation fraud. In December 2023, the Office of the Auditor General found that between January 2020 and October 2022, Michigan paid out 245.1 million dollars to individuals potentially ineligible for benefits, including those who were incarcerated, deceased, or residing in long-term care facilities; and
Whereas, The statute of limitations on federal prosecutions for non-capital offenses is five years. However, pandemic unemployment fraud cases involve a multitude of layers, including identify theft, interstate crime, and money laundering schemes. These actions can take years to investigate and prosecute properly – five years is simply not enough time; and
Whereas, The Pandemic Unemployment Fraud Enforcement Act seeks to extend the statute of limitations for prosecuting fraud in pandemic unemployment programs from five years to ten years. Extending the statute of limitations will give investigators more time to track down fraud and recover misused funds. Without extended enforcement, many cases will expire before justice can be served; and
Whereas, Extending enforcement authority protects taxpayers from the long-term financial harm of these crimes. Honest taxpayers should not be forced to carry the burden of government mismanagement and criminal fraud. Every dollar recovered is a dollar that can go towards schools, infrastructure, and families in need. Ensuring fraud is punished strengthens public confidence in government safety-net programs for families who truly need help; and
Whereas, Combating fraud should not be a partisan issue. Both parties should agree that protecting taxpayers and enforcing the law are fundamental responsibilities of government. By adopting this resolution, this chamber will not only demonstrate leadership in demanding accountability at the federal level, but it will also show that it stands with taxpayers; and
Whereas, Passing the Pandemic Unemployment Fraud Enforcement Act will be about accountability in government programs and deterring future acts of fraud, and it will protect taxpayer dollars and restore trust in public assistance programs. A longer enforcement window sends a strong message – fraud against taxpayers will be pursued relentlessly; now, therefore, be it
Resolved by the House of Representatives, That we urge the United States Congress to swiftly pass House Bill 1156, the Pandemic Unemployment Fraud Enforcement Act, to ensure that federal and state authorities have sufficient time to hold fraudsters accountable and recover stolen taxpayer funds; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, and the members of the Michigan congressional delegation.
Co-sponsored by Reps.
Referred to the Committee on Government Operations