H.R. 1163 would allow states to pay for program integrity activities with funds they recover from overpayment of unemployment insurance (UI) benefits, including fraud. The bill also would change the period during which states can reduce unemployment benefits in order to recover overpayments. Additionally, the bill would change the handling of fraud for the Pandemic Unemployment Assistance (PUA) program, require states to match claimant information and eligibility using specific tools, and generally extend the statute of limitations to bring federal criminal charges for fraudulently collected unemployment benefits from 5 years to 10 years.
Finally, the bill would repeal section 2118 of the Coronavirus Aid, Relief, and Economic Security Act, as added by the American Rescue Plan Act of 2021 (ARPA), which provided $2 billion in funding for the Department of Labor (DOL) to prevent fraud and improve equitable access and timely payment of benefits for regular and pandemic-related UI programs.