The Office of Inspector General (OIG) at the Labor Department estimates $191 billion in pandemic unemployment insurance was paid improperly. The OIG also said it is still working to find out the final improper payment rate, but know it’s over 20%.
The OIG is now asking for Congress to provide extra funding for the investigations. A new report stated the office is reducing its workforce by 20% this year and had to cancel 10 pandemic related audits.
“Over the past 10 fiscal years, on average, every dollar invested in the OIG resulted in a return on investment of nearly 75 dollars to the federal government and American taxpayers,” the request to Congress said.
The OIG also wants Congress to extend the statute of limitations for unemployment insurance fraud beyond the current five years. Otherwise, it said fraudsters will get away with stealing taxpayer money.
President Biden echoed that message during his State of the Union.
“Now, let’s triple our anti-fraud strike forces going after these criminals, double the statute of limitations on these crimes, and crack down on identity fraud by criminal syndicates stealing billions of dollars from the American people,” the president said.
House Democratic Leader Rep. Hakeem Jeffries, N.Y., said to prevent fraud, guardrails need to be put in at the front end when legislation is written, and they need accountability at the back end. He said he hopes the added funding and statute of limitations extension can be done this congress.
“I mean I think we all support the notion that taxpayer dollars and resources should be used in an effective, efficient and equitable fashion,” Jeffries said.
Lawmakers want to blame their opposing party’s president since many of the programs were created under the Trump administration, but much of the oversight has taken place under Biden.
“He mentioned watchdogs in his speech but it’s totally self-serving and misleading because his administration has gutted the authority of inspectors general related to COVID. We’ve got to restore the authority,” Sen. Josh Hawley, R-Mo., said.
“It’s important that we uncover the frauds that occurred during the Trump administration. And we’re working hard on it,” Sen. Elizabeth Warren, D-Mass., said.
But if Congress wants investigations to continue, it will need to provide the funding.
