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HR7847119th CongressWALLET

Stop Unemployment Fraud Act

Sponsored By: Representative Smucker, Lloyd [R-PA-11]

Introduced

Summary

Stronger identity verification is the center of this bill. It would create a federal framework to curb unemployment insurance fraud by requiring tougher ID checks, national data-matching, stricter work-search rules, and changes to when payments are made.

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  • Claimants and jobseekers would have to provide at least one valid federal or state government ID plus supporting documents to apply. They must register for employment services and submit a verified work-search record each week. Self-attestation alone would not prove weekly eligibility.
  • States would certify or build an Integrity Data Hub to cross-match claims with the National Directory of New Hires, the State Information Data Exchange System, and Social Security data on incarcerated and deceased individuals to detect fraud. The Secretary of Labor could monitor compliance and withhold 5 percent of certain funds for noncompliance.
  • States could keep up to 5 percent of recovered overpayments and related collections to fund administration, fraud deterrence, worker classification efforts, and technology modernization. Most major provisions would phase in two years after enactment.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 0 costs, 6 mixed.

Cross-checks to spot UI fraud

If enacted, States would have to use an Integrity Data Hub or similar system to cross-match unemployment claims with national and state records. They would check new-hire files, employer responses, incarceration and death records, and Social Security lists to verify employment or ineligibility and to recover improper payments. This would help catch and recover wrong payments but could lead to more denials or recoupments for some claimants.

Payments only after eligibility confirmed

If enacted, States would have to pay weekly UI only after a claimant is found eligible, files a weekly claim, and meets weekly rules. The Labor Secretary would set maximum timeframes for payment within 180 days, including for high-volume periods. Claimant self-attestation alone would not be enough to prove weekly eligibility starting two years after enactment. These steps aim to reduce "pay-and-chase" overpayments but could delay payments for some people.

Stricter ID checks for jobless claims

If enacted, States would have to verify identity for initial unemployment claims filed two years after enactment. Verification would need at least one current federal or state photo ID plus one supporting document like a utility bill, lease, or vehicle registration. The Labor Secretary would write rules within 12 months on costs, privacy, bias safeguards, and due process. These checks could reduce fraud but might delay benefits for people without required documents.

Weekly work-search proof required

If enacted, regular unemployment claimants would have to register for state job services, keep a weekly work-search record listing employers contacted, how you contacted them, and the date, and provide that record each week they get benefits. States must verify those records. The Labor Secretary would issue guidance within six months. This seeks to improve program integrity but adds paperwork and a risk of lost benefits for noncompliance.

Federal monitoring and fund withholding

If enacted, the Labor Secretary would monitor State compliance with identity-verification and work-search rules. After notice and a hearing, the Secretary could withhold 5 percent of certain federal UI administrative funds from a noncompliant State and require a corrective action plan. This is intended to push States to comply but could temporarily reduce State UI administration funding.

States can keep 5% of recoveries

If enacted, States could deposit up to 5 percent of certain recovered overpayments and of contributions collected from investigations into a State fund for fraud prevention, worker classification work, IT upgrades, and related administration. The authority applies to collections after the two-year phase-in and excludes overpayments caused by agency error. States could reinvest a small share of recoveries, but slightly less money would flow immediately to the national Unemployment Trust Fund.

Sponsors & CoSponsors

Sponsor

Smucker, Lloyd [R-PA-11]

PA • R

Cosponsors

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 3/5/2026

  • Rep. Buchanan, Vern [R-FL-16]

    FL • R

    Sponsored 3/5/2026

  • Rep. Fong, Vince [R-CA-20]

    CA • R

    Sponsored 3/5/2026

  • Rep. Van Duyne, Beth [R-TX-24]

    TX • R

    Sponsored 3/5/2026

  • Rep. Feenstra, Randy [R-IA-4]

    IA • R

    Sponsored 3/5/2026

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 3/5/2026

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 3/5/2026

  • Rep. Kelly, Mike [R-PA-16]

    PA • R

    Sponsored 3/5/2026

  • Rep. Arrington, Jodey C. [R-TX-19]

    TX • R

    Sponsored 3/5/2026

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 3/5/2026

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 3/5/2026

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 3/5/2026

  • Rep. Bean, Aaron [R-FL-4]

    FL • R

    Sponsored 3/5/2026

  • Rep. Yakym, Rudy [R-IN-2]

    IN • R

    Sponsored 3/5/2026

  • Rep. Estes, Ron [R-KS-4]

    KS • R

    Sponsored 3/5/2026

  • Rep. Kustoff, David [R-TN-8]

    TN • R

    Sponsored 6/24/2026

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 7/20/2026

Roll Call Votes

No roll call votes available for this bill.

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