Pandemic Unemployment Fraud Enforcement Act
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Would extend from 5 to 10 years the deadline for bringing criminal or civil fraud cases tied to pandemic-era unemployment programs like Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation.
It would also rescind $5 million in unspent American Rescue Plan funds set aside for unemployment fraud prevention, giving investigators more time to pursue COVID-era unemployment fraud cases before evidence and records become unavailable.
What this bill would do
What it would do
The bill would amend the CARES Act to extend, from 5 to 10 years, the statute of limitations for criminal prosecutions and civil enforcement actions involving fraud connected to Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earner Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. The extension covers offenses such as aggravated identity theft, wire fraud, mail fraud, money laundering, conspiracy, and false claims under specified provisions of titles 18 and 31 of the U.S. Code. The bill would also rescind $5,000,000 in unobligated funds previously provided under the American Rescue Plan Act for unemployment fraud and program integrity work. The extended deadline would not revive cases where the previously applicable statute of limitations had already expired before enactment. The bill makes no other changes to the underlying unemployment programs themselves and does not create new offenses or penalties.
Key provisions
- 1Would extend the statute of limitations for criminal prosecutions and civil enforcement actions involving Pandemic Unemployment Assistance fraud from 5 to 10 years
- 2Would extend the statute of limitations to 10 years for fraud involving Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation
- 3Would extend the statute of limitations to 10 years for fraud involving Pandemic Emergency Unemployment Compensation
- 4Would exempt from the extension any case where the prior statute of limitations had already expired before enactment
- 5Would rescind $5,000,000 in unobligated American Rescue Plan Act funds provided to the Department of Labor for anti-fraud and program integrity activities
Who would be affected
Individuals suspected of committing fraud against pandemic-era unemployment programs, federal prosecutors and civil enforcement agencies pursuing such cases, and the Department of Labor, which would lose $5 million in previously appropriated anti-fraud funding under the rescission.
Why it matters
A longer statute of limitations would let prosecutors and civil enforcement agencies pursue pandemic unemployment fraud cases discovered years after the fact, potentially increasing recoveries and convictions tied to the roughly $900 billion in pandemic unemployment spending. The funding rescission slightly reduces resources available for future fraud-prevention efforts.
What would change
Changes to existing law
Amends Section 2102 of the CARES Act (15 U.S.C. 9021) - Pandemic Unemployment Assistance (Sec. 2(a))
Adds a new subsection extending the statute of limitations for related fraud cases to 10 years, with an exception for already-expired claims
Amends Section 2104 of the CARES Act (15 U.S.C. 9023) - Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation (Sec. 2(b))
Adds a paragraph extending the statute of limitations for related fraud cases to 10 years, with the same exception
Amends Section 2107 of the CARES Act (15 U.S.C. 9025) - Pandemic Emergency Unemployment Compensation (Sec. 2(c))
Adds a paragraph extending the statute of limitations for related fraud cases to 10 years, with the same exception
Amends American Rescue Plan Act of 2021 (Public Law 117-2), Sec. 9032 funding under Public Law 116-136 (Sec. 3)
Rescinds $5,000,000 of unobligated Department of Labor anti-fraud funding provided under this provision
Agencies directed to act
Effective dates
- The amendments extending statutes of limitations and the funding rescission
Funding and costs
- $5,000,000
Rescission of unobligated Department of Labor unemployment insurance anti-fraud and program integrity funds
Congressional Budget Office estimate
CBO estimates the bill would have no significant net effect on the federal deficit, with direct spending changes and revenue changes each totaling less than $500,000 over the 2025–2035 period.
The bill would extend the statute of limitations for pandemic-era unemployment fraud from 5 to 10 years and rescind $5 million in mandatory funding for state unemployment insurance program integrity activities provided by the American Rescue Plan Act. CBO estimates these two provisions largely offset each other: the extension would increase direct spending by $5 million (to fund additional state fraud referrals and DOL reimbursements) while the rescission would reduce direct spending by $5 million, leaving net direct spending and revenues each changing by less than $500,000 over 2025–2035. Additionally, the bill would increase discretionary spending (subject to congressional appropriation) by about $5 million over 2025–2030 for the Labor Department's Office of Inspector General to handle increased fraud case referrals. CBO identified no intergovernmental or private-sector mandates in the bill.
How implementation would work
The extended statute of limitations would apply automatically to any qualifying pandemic unemployment fraud case not already time-barred as of enactment, giving the Department of Justice and civil enforcement authorities additional years to investigate and file charges or civil actions under specified federal fraud and false-claims statutes. No new agency rulemaking, reporting requirement, or grant process is established; the Department of Labor's unobligated anti-fraud funds affected by the rescission would simply be returned rather than spent.
Legislative status & sources
Latest action
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 29.
Official CRS summary
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This bill extends from 5 to 10 years the statute of limitations for federal criminal charges or civil enforcement actions for fraud related to several unemployment insurance programs that were established during the COVID-19 pandemic.
The extension applies to Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earners Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. The bill extends the statute of limitations for (1) criminal charges related to fraud, including aggravated identity theft, wire fraud, and conspiracy to commit fraud; and (2) civil actions involving false claims. However, the bill does not apply to a criminal prosecution or civil enforcement action if the applicable statute of limitations expired before the date of the bill's enactment.
Additionally, the bill rescinds specified unobligated funds that were provided in the American Rescue Plan Act of 2021 to the Department of Labor for anti-fraud and program integrity activities.
Legislative subjects
Cardiovascular and respiratory health; Emergency medical services and trauma care; Fraud offenses and financial crimes; Infectious and parasitic diseases; Labor and Employment; State and local finance; Unemployment
Committee report
H. Rept. 119-6