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S5272119th CongressWALLET

Recover COVID Unemployment Fraud in Banks Act

Sponsored By: Senator Lankford, James [R-OK]

Introduced

Summary

This bill would create a national, cross-agency effort to _recover improperly paid pandemic unemployment benefits_. It focuses on payments issued on prepaid debit cards or held by state unclaimed-property offices and sets up unified processes and guidance to return those funds to the Federal Government.

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  • Families and workers: It targets Federal pandemic unemployment payments that were paid incorrectly so funds held on prepaid cards or with unclaimed-property offices can be identified and recovered.
  • Financial institutions and unclaimed-property administrators: Banks and state custodians would get federal guidance and legal pathways to return improper payments, developed with bank regulators like the OCC and FDIC and the Consumer Financial Protection Bureau.
  • State agencies: The Department of Labor would consult states on best practices and reimburse state administrative costs tied to Task Force coordination under CARES Act sections 2102, 2104, and 2107.
  • Law enforcement and prosecutors: The bill would extend the statute of limitations for fraud involving three CARES Act unemployment programs to a 10-year limit for prosecutions and civil actions.

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Bill Overview

Analyzed Economic Effects

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

Longer fraud limits for pandemic unemployment

If enacted, prosecutors would have up to 10 years to bring criminal or civil cases for many federal crimes tied to CARES Act pandemic unemployment claims. The change would apply to listed statutes like mail, wire, bank fraud, identity fraud, money laundering, and false claims when the claim was funded in whole or part by pandemic unemployment programs. The bill would not revive any prosecution or enforcement action if the old time limit already expired before enactment.

Recover pandemic unemployment funds

If enacted, the Labor Secretary would name a National Recovery Coordinator in the Department of Labor. Within 30 days, that person would set up a Task Force with the Attorney General, Labor, Treasury, DOL Inspector General, FDIC, and CFPB. The Task Force would locate Federal pandemic unemployment payments held on prepaid debit cards, in banks, or by state unclaimed-property offices and make rules to return improper payments. The bill would define which pandemic payments are covered and call an "improper payment" any amount a person was not entitled to. The Labor Secretary would also reimburse States for administrative costs of working with the Task Force under CARES Act agreements.

Sponsors & CoSponsors

Sponsor

Lankford, James [R-OK]

OK • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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