HR8873119th CongressWALLET

Recover COVID Unemployment Fraud in Banks Act

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

In Committee

Summary

Recover improperly paid pandemic unemployment benefits. This bill would create a centralized, interagency framework to find pandemic-era unemployment payments held on prepaid debit cards or by State unclaimed-property offices and to return those funds to the proper government or claimant.

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  • States would get coordinated guidance and model procedures to identify improper Federal pandemic unemployment compensation and to standardize how funds are returned. The Secretary of Labor would reimburse States for administrative costs under CARES Act authorities.
  • Banks and prepaid-card contractors would receive model guidance, developed with the Office of the Comptroller of the Currency and the FDIC, on reviewing and returning improper payments to State agencies.
  • People whose identities were used to fraudulently claim benefits would be provided a model notice and information resources to help them understand and respond to recoveries.
  • The Department of Labor would designate a National Recovery Coordinator and convene a Recover Pandemic Unemployment Funds in Banks Task Force within 30 days. The Task Force would include Treasury, the Attorney General, the Labor Inspector General, the FDIC chair, and the Consumer Financial Protection Bureau director and would issue model processes on cost-effective recovery, legal pathways, and standardized procedures.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Recover pandemic unemployment funds in banks

If enacted, the Secretary of Labor would name a National Recovery Coordinator and start a task force within 30 days. The task force would include the Attorney General, Labor Secretary, DOL Inspector General, Treasury Secretary, FDIC Chair, and CFPB Director or their designees. It would work with states and banks to find CARES-era unemployment payments on prepaid cards or in unclaimed-property accounts and to issue bank and state guidance and model recovery steps. The task force would produce a model identity‑theft notice and standardized procedures for returning improper payments. The Secretary of Labor would reimburse States for administrative costs tied to CARES Act agreements, and the bill would define which CARES payments are covered and what counts as an "improper payment."

Longer fraud deadline for pandemic unemployment claims

If enacted, prosecutors and agencies could bring criminal or civil cases for listed fraud statutes related to CARES-funded unemployment claims up to ten years after the offense. The change would apply to specific federal fraud and false‑statement crimes and certain title 31 provisions. It would not revive cases whose statute of limitations already expired before enactment.

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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