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HR 8873

Recover COVID Unemployment Fraud in Banks Act

119th Congress Introduced by Beth Van Duyne and 2 co-sponsors

Creates a federal mechanism to locate and recover unclaimed pandemic UI funds held by banks or state programs and return them to the federal government.

Motion to reconsider laid on the table Agreed to without objection.
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Bill Summary · HR 8873

Summary of HR 8873 — Recover COVID Unemployment Fraud in Banks Act

  • Purpose and intent

    • Create a federal mechanism to recover unclaimed pandemic-era unemployment compensation funds that are held by financial institutions or escheated to state unclaimed property programs.
    • Improve coordination between federal and state agencies to identify, recover, and return improper COVID-era UI payments to the federal government, while protecting affected claimants where identity theft occurred.

  • Key provisions and changes

    • National Recovery Coordinator and Task Force
    • Establishes a National Recovery Coordinator (Secretary of Labor, in consultation with the Treasury, DOL Inspector General, and Attorney General).
    • Creates the Recover Pandemic Unemployment Funds in Banks Task Force within 30 days of enactment.
    • Task Force members: Attorney General, Secretary of Labor, DOL Inspector General, Secretary of the Treasury, FDIC Chair, and CFPB Director (or designees).
    • Responsibilities include coordinating with states to locate pandemic UI payments on prepaid debit cards held by banks or escheated to state unclaimed-property agencies; developing cost-effective recovery processes; issuing guidance to state agencies, financial institutions, and unclaimed-property administrators; and establishing a standardized process to return funds to the federal government.
    • Requires guidance to financial institutions on legal pathways to return improper payments and to state unclaimed-property administrators on return obligations.
    • States that guidance should incorporate best practices and include notices for victims of identity theft and information about resources available to those individuals.
    • Reimburses states for administrative costs incurred in coordinating with the Task Force (under CARES Act authorities).
    • Definitions
    • Federal Pandemic Unemployment Compensation includes: Pandemic Unemployment Assistance (CARES 2102), FPUC and MEUC (CARES 2104), and Pandemic Emergency Unemployment Compensation (CARES 2107).
    • Improper payment: any pandemic UI payment to which the recipient was not entitled.
    • Statute of limitations (fraud-related actions)
    • Extends the statute of limitations for criminal prosecution or civil enforcement actions relating to fraud in pandemic UI programs funded by CARES Act programs to 10 years (from the date of violation/conspiracy).
    • Applies to PUA, FPUC/MEUC, and PEUC offenses.
    • Includes an explicit exception: if the prior statute had already expired before enactment, that action is not revived.
    • Effective date
    • All provisions take effect upon enactment of the Act.

  • Affected parties

    • Federal: U.S. Department of Labor, Department of the Treasury, Department of Justice (via the Attorney General), FDIC, and CFPB.
    • State governments: State workforce agencies and unclaimed-property administrators.
    • Financial institutions: Banks and other entities holding pandemic-era UI payments on prepaid debit cards.

  • Procedural/timeline aspects

    • The Task Force must be convened within 30 days of enactment.
    • Guidance and model processes to be developed and issued under sections (b)(2)–(4) of the bill.
    • Reimbursements to states for administrative costs are provided through CARES Act authorities.
    • The statute of limitations expansion applies to crimes and civil actions tied to pandemic UI fraud, with an automatic 10-year horizon unless previously expired.

  • Budget and oversight

    • The House Ways and Means Committee notes they did not receive a CBO estimate in time for the report; the bill states no new or increased budget authority or tax expenditures.
    • The Committee report references prior related legislation (e.g., H.R. 1156) and observed fraud recovery efforts and OIG findings as background.

In short, HR 8873 creates a federal coordination mechanism to recover unclaimed or bank-held pandemic unemployment funds, expands the window for pursuing fraud, and provides guidance and financial support to states and banks to return funds to the federal government.

Compiled from official sources — confirm details with the bill’s official record.

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