The amount of fraudulent unemployment payments doled out during the pandemic was likely between $100 billion and $135 billion, representing up to 15% of total benefits issued between April 2020 and May 2023, according to a government watchdog. .
The study doubles the Government Accountability Office’s original estimate provided to the House Ways and Means Committee in February.
And the actual level of fraud could be even higher, even though the Biden administration allocated more than $1 billion to states for unemployment fraud prevention, detection, investigation and recovery.
“The total scope of [unemployment] Fraud during the pandemic will likely never be known with certainty,” the GAO said in a report released Tuesday.
States have reported recovering only about $6.8 billion in overpayments for unemployment during the pandemic era, including $1.2 billion in fraudulent payments, or less than 1% of the staggering total fraud potential estimated by the GAO.
“The unprecedented demand for [unemployment] The benefits and urgency with which states implemented new programs during the pandemic increased the risk of improper payments, including, but not limited to, those due to fraud,” the report states.
The amount of fraudulent unemployment payments distributed during the pandemic was likely between $100 billion and $135 billion.AP
The March 2020 CARES Act bolstered unemployment benefits with federal dollars, providing the unemployed with an additional $600 in weekly benefits (later reduced to $300) for up to 79 weeks.
“From April 1, 2020 to May 31, 2023, expenses throughout the [unemployment] The system totaled approximately $900 billion, according to data from the Department of Labor (DOL),” the GAO found.
The study was conducted in response to a request from Sen. Mike Crapo (R-Idaho) and Rep. Jason Smith (R-Mo.).
The study doubles the Government Accountability Office’s original estimate provided to the House Ways and Means Committee in February.AP
“These shocking estimates continue to grow, and as GAO notes, we may never know the full scope and scale of fraudulent payments during the pandemic,” Crapo, ranking member of the Senate Finance Committee, said in a statement. .
“Unfortunately, the Administration’s efforts to address more than one hundred billion dollars in fraud in the [unemployment] program have fallen woefully short. “Congress should pass the Unemployment Fraud Victim and Taxpayer Protection Act to recover stolen funds for victims and prevent similar large-scale thefts from occurring in the future,” he added.
Smith, chairman of the House Ways and Means Committee, called the estimated fraud “the largest theft of taxpayer dollars in American history” and demanded that Senate Democrats “take immediate action” to combat it. .
The actual level of fraud could be even higher, despite the Biden administration allocating more than $1 billion to states for unemployment fraud prevention, detection, investigation and recovery. EPA
“I am extremely alarmed by these findings and even more convinced that immediate action is needed to recover as much taxpayer money as possible,” Smith said Tuesday.
“Unemployment fraud punishes workers and families by taking resources away from law-abiding Americans who deserve assistance and putting those resources directly into the pockets of criminals. The unfortunate reality is that every day that President Biden spends ignoring this issue, the chances of recovering stolen tax money on behalf of these fraud victims become smaller.”
The GAO notes that the Biden administration’s Department of Labor “expressed concerns” with the study’s methodology “and stated that the resulting estimate was likely overstated.”
The GAO said it “disagrees” with the Labor Department’s assessment of the study.
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Source: vtt.edu.vn