Stop Unemployment Fraud Act
Sponsored By: Representative Smucker, Lloyd [R-PA-11]
Introduced
Summary
Stopping unemployment fraud by tightening identity checks, expanding data matching, and changing when benefits are paid to reduce improper payments and help states modernize their systems. This package would require stronger ID checks, new verification rules, and targeted uses of recovered funds for administration and technology.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 1 costs, 3 mixed.
New weekly work-search record rules
If enacted, claimants would need to register for state employment services and keep a weekly work-search record. You would list employers contacted, how you contacted them, and the date, and give that record to the state each week you get benefits. States would verify those records. The Labor Secretary would issue guidance within six months. These rules would apply to regular benefits starting two years after enactment.
Stricter ID checks and payment timing
If enacted, states would be required to verify a claimant's identity before paying unemployment. You would need at least one current Federal or State ID and one supporting document. A claimant's self-attestation alone would not be enough for weekly eligibility. Benefits would only be paid after eligibility and identity checks are complete. The Labor Secretary would write identity rules within 12 months and set payment-timing limits within 180 days. The ID and payment rules would apply to initial applications and certifications two years after enactment.
New data checks and federal oversight
If enacted, states would have to certify they use a Secretary‑designated cross‑matching system (an Integrity Data Hub) or an approved alternative. States would check the National Directory of New Hires and other records to spot possibly employed, incarcerated, or deceased claimants. The Labor Secretary would monitor state compliance and, after notice and a hearing, could withhold 5 percent of certain federal unemployment funds and require a corrective action plan for noncompliant states.
States may keep 5% of recoveries
If enacted, states would be allowed to deposit up to 5 percent of certain recovered overpayments and up to 5 percent of contributions collected from investigations into a State fund. States could use that money for fraud prevention, worker classification work, transfers to their Unemployment Trust Fund, and IT modernization. This authority would apply to amounts collected after the two-year period that begins on enactment.
Sponsors & CoSponsors
Sponsor
Smucker, Lloyd [R-PA-11]
PA • R
Cosponsors
Rep. Smith, Adrian [R-NE-3]
NE • R
Sponsored 3/5/2026
Buchanan
FL • R
Sponsored 3/5/2026
Rep. Fong, Vince [R-CA-20]
CA • R
Sponsored 3/5/2026
Van Duyne
TX • R
Sponsored 3/5/2026
Feenstra
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
Kelly (PA)
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
Bean (FL)
FL • R
Sponsored 3/5/2026
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 3/5/2026
Estes
KS • R
Sponsored 3/5/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov