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119-hr-8873119th CongressWALLET

Recover COVID Unemployment Fraud in Banks Act

Sponsored By: Representative Van Duyne, Beth [R-TX-24]

Passed House

Summary

Recovering improper pandemic unemployment funds held by banks and state unclaimed-property programs. The Act creates a National Recovery Coordinator at the Department of Labor and a multi-agency Recover Pandemic Unemployment Funds in Banks Task Force to identify, recover, and guide the return of pandemic-era unemployment payments that were improperly paid or obtained by fraud.

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  • Individuals whose identities were fraudulently used receive a model notice and information developed with the Consumer Financial Protection Bureau. The Task Force will also supply information on legal pathways to recover improper payments.
  • State agencies get help finding payments on prepaid debit cards and in state unclaimed-property systems and receive model processes for cost-effective recovery. The Secretary of Labor must reimburse states for administrative costs of coordinating with the Task Force under CARES Act authorities.
  • Banks and other financial institutions get guidance, coordinated with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, on returning improper pandemic unemployment payments to the correct state agency and on standardized methods for returning funds to the federal government.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Task force to recover pandemic jobless aid

If enacted, the Labor Department would name a national coordinator and start a task force within 30 days. They would work with states, banks, and unclaimed-property offices to find pandemic unemployment payments on prepaid debit cards or sent to unclaimed property that were improper. The task force would issue rules with banking regulators and the Treasury Department on how banks and state unclaimed-property offices return those funds. It would set model steps, cost-effectiveness thresholds, and a model notice with the Consumer Financial Protection Bureau for identity-theft victims. The bill would also define which CARES Act unemployment programs are covered and what counts as an improper payment.

Federal help for states' recovery costs

If enacted, the Labor Department would repay states for all admin costs from working with the task force. This would apply when the work is under CARES Act sections 2102, 2104, or 2107 agreements. This would help state budgets. It would not send money to households.

Sponsors & CoSponsors

Sponsor

Van Duyne, Beth [R-TX-24]

TX • R

Cosponsors

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 5/19/2026

  • Rep. Feenstra, Randy [R-IA-4]

    IA • R

    Sponsored 5/21/2026

Roll Call Votes

No roll call votes available for this bill.

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