Recover COVID Unemployment Funds

Summary#

This bill creates a National Recovery Coordinator and a "Recover Pandemic Unemployment Funds in Banks Task Force." The Task Force must work with State agencies, federal banking regulators, and consumer agencies to identify Federal pandemic unemployment payments that are held by financial institutions, third-party payment contractors, or that were transferred to State unclaimed property offices. The Task Force will issue model processes and guidance for reviewing payments, deciding if a payment was improper, determining when recovery is cost-effective, steps States may take when fraud is found, a model notice for people whose identity was used fraudulently, and standardized procedures for returning funds.

The Secretary of Labor must reimburse States for administrative costs they incur while coordinating with the Task Force under certain CARES Act agreements. The bill also extends the statute of limitations so that specified criminal prosecutions or civil enforcement actions related to covered pandemic unemployment programs may be brought up to 10 years after the violation, unless the previous limitation already expired before this bill is enacted.

The bill defines key terms, including which CARES Act pandemic unemployment programs are covered and that an "improper payment" means a payment to which the individual is not entitled.

What it means for you#

  • State agencies: The Task Force will provide model guidance and States will be reimbursed for administrative costs tied to coordinating on recovery efforts under certain CARES Act agreements.
  • Financial institutions and payment contractors: The bill directs federal agencies to issue guidance about legal pathways and procedures for returning improper pandemic unemployment payments to the appropriate State agency.
  • Individuals whose identity was used in fraud: The Task Force must develop a model notice and information about resources for people whose identity information was determined to have been used fraudulently to obtain pandemic unemployment payments.
  • Possible legal actions: For specified federal criminal statutes and civil enforcement provisions tied to the covered pandemic unemployment programs, prosecutions or enforcement actions may be brought within 10 years of the violation, unless the prior statute of limitations had already expired before this bill is enacted.

Expenses#

  • The Secretary of Labor must reimburse States for all administrative costs incurred because of coordination with the Task Force under specified CARES Act agreements.
  • No publicly available information on total or estimated federal costs or appropriations for implementing the Task Force or reimbursements.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.