II 

118TH CONGRESS 

2D SESSION S. 4663 

To improve administration of the unemployment insurance program by expanding program integrity and anti-fraud activities and improving access 

to benefits, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 10, 2024 

Mr. WYDEN (for himself, Mr. CRAPO, Mr. BENNET, Mr. LANKFORD, Mr. 

BROWN, Mr. BARRASSO, Mr. PETERS, Mr. YOUNG, Mr. WHITEHOUSE, 

Mr. RISCH, Mr. CARDIN, and Mr. TILLIS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To improve administration of the unemployment insurance 

program by expanding program integrity and anti-fraud 

activities and improving access to benefits, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Unemployment Insurance Integrity and Accessibility 

6 Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—UNEMPLOYMENT INSURANCE FRAUD AND 

OVERPAYMENT RECOVERY 

Sec. 101. Extension of the statute of limitations for fraud by individuals under 

certain unemployment programs. 

Sec. 102. Waiver of recovery of nonfraud pandemic overpayments. 

Sec. 103. Permissible use of unemployment fund money for program administration. 

TITLE II—UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY 

Sec. 201. Use of National Directory of New Hires in administration of unemployment compensation programs. 

Sec. 202. Electronic transmission of unemployment compensation information. 

Sec. 203. Unemployment compensation data cross-matching. 

Sec. 204. Incarcerated individuals. 

Sec. 205. Regulations. 

TITLE III—UNEMPLOYMENT INSURANCE ADMINISTRATION AND 

TECHNOLOGY 

Sec. 301. Access to benefits. 

Sec. 302. GAO study and report on the use of funding for unemployment fraud 

prevention, equitable access, and timely payments. 

3 TITLE I—UNEMPLOYMENT IN4 SURANCE FRAUD AND OVER5 PAYMENT RECOVERY 

6 SEC. 101. EXTENSION OF THE STATUTE OF LIMITATIONS 

7 FOR FRAUD BY INDIVIDUALS UNDER CER8 TAIN UNEMPLOYMENT PROGRAMS. 

9 (a) PANDEMIC UNEMPLOYMENT ASSISTANCE.—Sec10 tion 2102 of the CARES Act (15 U.S.C. 9021) is amend11 ed— 

12 (1) by redesignating subsection (h) as sub13 section (i); and 


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1 (2) by inserting after subsection (g) the fol2 lowing new subsection: 

3 ‘‘(h) STATUTE OF LIMITATIONS.— 

4 ‘‘(1) IN GENERAL.—Notwithstanding any other 

5 provision of law and subject to paragraph (2), any 

6 criminal prosecution or civil enforcement action for 

7 a violation of, or conspiracy to violate, section 371, 

8 1028A, 1029, 1341, 1343, or 1349 of title 18, 

9 United States Code, or section 3729 of title 31, 

10 United States Code, with respect to any unemploy11 ment compensation claim funded in whole or in part 

12 by pandemic unemployment assistance under this 

13 section shall be brought not later than 10 years 

14 after the date of the violation or conspiracy. 

15 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

16 apply with respect to a criminal prosecution or civil 

17 enforcement action if the statute of limitations appli18 cable to such criminal prosecution or civil enforce19 ment action expired prior to the date of enactment 

20 of the Unemployment Insurance Integrity and Ac21 cessibility Act.’’. 

22 (b) FEDERAL PANDEMIC UNEMPLOYMENT COM23 PENSATION AND MIXED EARNER UNEMPLOYMENT COM24 PENSATION.—Section 2104(f) of the CARES Act (15 


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1 U.S.C. 9023(f)) is amended by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(5) STATUTE OF LIMITATIONS.— 

4 ‘‘(A) IN GENERAL.—Notwithstanding any 

5 other provision of law and subject to subpara6 graph (B), any criminal prosecution or civil en7 forcement action for a violation of, or con8 spiracy to violate, section 371, 1028A, 1029, 

9 1341, 1343, or 1349 of title 18, United States 

10 Code, or section 3729 of title 31, United States 

11 Code, with respect to any unemployment com12 pensation claim funded in whole or in part by 

13 Federal Pandemic Unemployment Compensa14 tion or Mixed Earner Unemployment Com15 pensation under this section shall be brought 

16 not later than 10 years after the date of the 

17 violation or conspiracy. 

18 ‘‘(B) EXCEPTION.—Subparagraph (A) 

19 shall not apply with respect to a criminal pros20 ecution or civil enforcement action if the statute 

21 of limitations applicable to such criminal pros22 ecution or civil enforcement action expired prior 

23 to the date of enactment of the Unemployment 

24 Insurance Integrity and Accessibility Act.’’. 


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1 (c) PANDEMIC EMERGENCY UNEMPLOYMENT COM2 PENSATION.—Section 2107(e) of the CARES Act (15 

3 U.S.C. 9025(e)) is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(5) STATUTE OF LIMITATIONS.— 

6 ‘‘(A) IN GENERAL.—Notwithstanding any 

7 other provision of law and subject to subpara8 graph (B), any criminal prosecution or civil en9 forcement action for a violation of, or con10 spiracy to violate, section 371, 1028A, 1029, 

11 1341, 1343, or 1349 of title 18, United States 

12 Code, or section 3729 of title 31, United States 

13 Code, with respect to any unemployment com14 pensation claim funded in whole or in part by 

15 pandemic emergency unemployment compensa16 tion under this section shall be brought not 

17 later than 10 years after the date of the viola18 tion or conspiracy. 

19 ‘‘(B) EXCEPTION.—Subparagraph (A) 

20 shall not apply with respect to a criminal pros21 ecution or civil enforcement action if the statute 

22 of limitations applicable to such criminal pros23 ecution or civil enforcement action expired prior 

24 to the date of enactment of the Unemployment 

25 Insurance Integrity and Accessibility Act.’’. 


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1 (d) FEMA OTHER NEEDS ASSISTANCE.— 

2 (1) STATUTE OF LIMITATIONS.— 

3 (A) IN GENERAL.—Notwithstanding any 

4 other provision of law and subject to subpara5 graph (B), any criminal prosecution or civil en6 forcement action for a violation of, or con7 spiracy to violate, section 371, 1028A, 1029, 

8 1341, 1343, or 1349 of title 18, United States 

9 Code, or section 3729 of title 31, United States 

10 Code, with respect to other needs assistance for 

11 lost wages to supplement unemployment assist12 ance available under programs administered by 

13 the Department of Labor shall be brought not 

14 later than 10 years after the date of the viola15 tion or conspiracy. 

16 (B) EXCEPTION.—Subparagraph (A) shall 

17 not apply with respect to a criminal prosecution 

18 or civil enforcement action if the statute of limi19 tations applicable to such criminal prosecution 

20 or civil enforcement action expired prior to the 

21 date of enactment of this section. 

22 (2) DEFINITION.—In paragraph (1), the term 

23 ‘‘other needs assistance for lost wages to supplement 

24 unemployment assistance’’ means any supplementary 

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1 sistance under section 408(e)(2) of the Robert T. 

2 Stafford Disaster Relief and Emergency Assistance 

3 Act (42 U.S.C. 5174(e)(2)) relating to a major dis4 aster declared by the President under section 401 of 

5 such Act (42 U.S.C. 5170) to supplement recovery 

6 efforts in areas affected by the Coronavirus Disease 

7 2019 (COVID–19). 

8 SEC. 102. WAIVER OF RECOVERY OF NONFRAUD PANDEMIC 

9 OVERPAYMENTS. 

10 (a) PANDEMIC UNEMPLOYMENT ASSISTANCE.—Sec11 tion 2102(d)(4) of the CARES Act (15 U.S.C. 

12 9021(d)(4)) is amended to read as follows: 

13 ‘‘(4) REPAYMENT AND WAIVERS OF OVERPAY14 MENTS.— 

15 ‘‘(A) REPAYMENT.—Subject to subpara16 graph (B), in the case of individuals who have 

17 received amounts of pandemic unemployment 

18 assistance to which they were not entitled, the 

19 State shall require such individuals to repay the 

20 amounts of such pandemic unemployment as21 sistance to the State agency. 

22 ‘‘(B) WAIVERS.— 

23 ‘‘(i) GENERAL AUTHORITY.—In the 

24 case of an overpayment of amounts of pan25 demic unemployment assistance— 


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1 ‘‘(I) established on or before De2 cember 31, 2025, a State agency may 

3 waive repayment of such amounts 

4 under subparagraph (A) if the State 

5 agency determines that— 

6 ‘‘(aa) the payment of such 

7 pandemic unemployment assist8 ance was without fault on the 

9 part of any such individual; and 

10 ‘‘(bb) such repayment would 

11 be contrary to equity and good 

12 conscience; and 

13 ‘‘(II) established after December 

14 31, 2025, a State agency shall waive 

15 repayment of such amounts under 

16 subparagraph (A) if the State agency 

17 determines that— 

18 ‘‘(aa) the payment of such 

19 pandemic unemployment assist20 ance was not based on fraud on 

21 the part of the individual; and 

22 ‘‘(bb) such repayment would 

23 be contrary to equity and good 

24 conscience. 

25 ‘‘(ii) ADDITIONAL AUTHORITY.— 


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1 ‘‘(I) IN GENERAL.—In addition 

2 to the waiver authority provided under 

3 clause (i) and subject to subclause 

4 (II) of this clause, in the case of an 

5 overpayment of amounts of pandemic 

6 unemployment assistance established 

7 on or before December 31, 2025, if 

8 the State agency has not recovered 

9 such amounts as of the date of enact10 ment of the Unemployment Insurance 

11 Integrity and Accessibility Act, the 

12 State agency may waive repayment of 

13 such amounts to the State agency if it 

14 determines that— 

15 ‘‘(aa) the payment of such 

16 pandemic unemployment assist17 ance was not based on fraud on 

18 the part of the individual; and 

19 ‘‘(bb) such repayment would 

20 be contrary to equity and good 

21 conscience. 

22 ‘‘(II) RULE FOR AMOUNTS PRE23 VIOUSLY RECOVERED.—In the case of 

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1 lished on or before December 31, 

2 2025, that has been completely or 

3 partially recovered by the State agen4 cy prior to the date of enactment of 

5 the Unemployment Insurance Integ6 rity and Accessibility Act, with respect 

7 to such amount that has been so re8 covered— 

9 ‘‘(aa) the waiver authority 

10 under subclause (I) of this clause 

11 shall not apply; and 

12 ‘‘(bb) the State agency may 

13 waive repayment of such recov14 ered amounts under the authority 

15 under clause (i)(I). 

16 ‘‘(C) CONTRARY TO EQUITY AND GOOD

17 CONSCIENCE.—For purposes of this paragraph, 

18 a repayment shall be considered contrary to eq19 uity and good conscience if— 

20 ‘‘(i) recovery would cause financial 

21 hardship to the person from whom it is 

22 sought; 

23 ‘‘(ii) the recipient of the overpayment 

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1 ment would be made or because of the in2 correct payment, either they have relin3 quished a valuable right or changed posi4 tions for the worse; 

5 ‘‘(iii) recovery would be unconscion6 able under the circumstances; or 

7 ‘‘(iv) recovery would be contrary to 

8 equity and good conscience under the State 

9 law.’’. 

10 (b) FEDERAL PANDEMIC UNEMPLOYMENT COM11 PENSATION AND MIXED EARNER UNEMPLOYMENT COM12 PENSATION.—Section 2104(f)(2) of the CARES Act (15 

13 U.S.C. 9023(f)(2)) is amended to read as follows: 

14 ‘‘(2) REPAYMENT AND WAIVERS OF OVERPAY15 MENTS.— 

16 ‘‘(A) REPAYMENT.—Subject to subpara17 graph (B), in the case of individuals who have 

18 received amounts of Federal Pandemic Unem19 ployment Compensation or Mixed Earner Un20 employment Compensation to which they were 

21 not entitled, the State shall require such indi22 viduals to repay the amounts of such Federal 

23 Pandemic Unemployment Compensation or 

24 Mixed Earner Unemployment Compensation to 

25 the State agency. 


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1 ‘‘(B) WAIVERS.— 

2 ‘‘(i) GENERAL AUTHORITY.—In the 

3 case of an overpayment of amounts of Fed4 eral Pandemic Unemployment Compensa5 tion or Mixed Earner Unemployment Com6 pensation— 

7 ‘‘(I) established on or before De8 cember 31, 2025, a State agency may 

9 waive repayment of such amounts 

10 under subparagraph (A) if the State 

11 agency determines that— 

12 ‘‘(aa) the payment of such 

13 Federal Pandemic Unemploy14 ment Compensation or Mixed 

15 Earner Unemployment Com16 pensation was without fault on 

17 the part of any such individual; 

18 and 

19 ‘‘(bb) such repayment would 

20 be contrary to equity and good 

21 conscience; and 

22 ‘‘(II) established after December 

23 31, 2025, a State agency shall waive 

24 repayment of such amounts under 


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1 subparagraph (A) if the State agency 

2 determines that— 

3 ‘‘(aa) the payment of such 

4 Federal Pandemic Unemploy5 ment Compensation or Mixed 

6 Earner Unemployment Com7 pensation was not based on fraud 

8 on the part of the individual; and 

9 ‘‘(bb) such repayment would 

10 be contrary to equity and good 

11 conscience. 

12 ‘‘(ii) ADDITIONAL AUTHORITY.— 

13 ‘‘(I) IN GENERAL.—In addition 

14 to the waiver authority provided under 

15 clause (i) and subject to subclause 

16 (II) of this clause, in the case of an 

17 overpayment of amounts of Federal 

18 Pandemic Unemployment Compensa19 tion or Mixed Earner Unemployment 

20 Compensation established on or before 

21 December 31, 2025, if the State agen22 cy has not recovered such amounts as 

23 of the date of enactment of the Unem24 ployment Insurance Integrity and Ac25 cessibility Act, the State agency may 


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1 waive repayment of such amounts to 

2 the State agency if it determines 

3 that— 

4 ‘‘(aa) the payment of such 

5 Federal Pandemic Unemploy6 ment Compensation or Mixed 

7 Earner Unemployment Com8 pensation was not based on fraud 

9 on the part of the individual; and 

10 ‘‘(bb) such repayment would 

11 be contrary to equity and good 

12 conscience. 

13 ‘‘(II) RULE FOR AMOUNTS PRE14 VIOUSLY RECOVERED.—In the case of 

15 an overpayment of amounts of Fed16 eral Pandemic Unemployment Com17 pensation or Mixed Earner Unemploy18 ment Compensation established on or 

19 before December 31, 2025, that has 

20 been completely or partially recovered 

21 by the State agency prior to the date 

22 of enactment of the Unemployment 

23 Insurance Integrity and Accessibility 

24 Act, with respect to such amount that 

25 has been so recovered— 


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1 ‘‘(aa) the waiver authority 

2 under subclause (I) of this clause 

3 shall not apply; and 

4 ‘‘(bb) the State agency may 

5 waive repayment of such recov6 ered amounts under the authority 

7 under clause (i)(I). 

8 ‘‘(C) CONTRARY TO EQUITY AND GOOD

9 CONSCIENCE.—For purposes of this paragraph, 

10 a repayment shall be considered contrary to eq11 uity and good conscience if— 

12 ‘‘(i) recovery would cause financial 

13 hardship to the person from whom it is 

14 sought; 

15 ‘‘(ii) the recipient of the overpayment 

16 can show (regardless of their financial situ17 ation) that due to the notice that such pay18 ment would be made or because of the in19 correct payment, either they have relin20 quished a valuable right or changed posi21 tions for the worse; 

22 ‘‘(iii) recovery would be unconscion23 able under the circumstances; or 


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1 ‘‘(iv) recovery would be contrary to 

2 equity and good conscience under the State 

3 law.’’. 

4 (c) PANDEMIC EMERGENCY UNEMPLOYMENT COM5 PENSATION.—Section 2107(e)(2) of the CARES Act (15 

6 U.S.C. 9025(e)(2)) is amended to read as follows: 

7 ‘‘(2) REPAYMENT AND WAIVERS OF OVERPAY8 MENTS.— 

9 ‘‘(A) REPAYMENT.—Subject to subpara10 graph (B), in the case of individuals who have 

11 received amounts of pandemic emergency unem12 ployment compensation to which they were not 

13 entitled, the State shall require such individuals 

14 to repay the amounts of such pandemic emer15 gency unemployment compensation to the State 

16 agency. 

17 ‘‘(B) WAIVERS.— 

18 ‘‘(i) GENERAL AUTHORITY.—In the 

19 case of an overpayment of amounts of pan20 demic emergency unemployment compensa21 tion— 

22 ‘‘(I) established on or before De23 cember 31, 2025, a State agency may 

24 waive repayment of such amounts 


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1 under subparagraph (A) if the State 

2 agency determines that— 

3 ‘‘(aa) the payment of such 

4 pandemic emergency unemploy5 ment compensation was without 

6 fault on the part of any such in7 dividual; and 

8 ‘‘(bb) such repayment would 

9 be contrary to equity and good 

10 conscience; and 

11 ‘‘(II) established after December 

12 31, 2025, a State agency shall waive 

13 repayment of such amounts under 

14 subparagraph (A) if the State agency 

15 determines that— 

16 ‘‘(aa) the payment of such 

17 pandemic emergency unemploy18 ment compensation was not 

19 based on fraud on the part of the 

20 individual; and 

21 ‘‘(bb) such repayment would 

22 be contrary to equity and good 

23 conscience. 

24 ‘‘(ii) ADDITIONAL AUTHORITY.— 


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1 ‘‘(I) IN GENERAL.—In addition 

2 to the waiver authority provided under 

3 clause (i) and subject to subclause 

4 (II) of this clause, in the case of an 

5 overpayment of amounts of pandemic 

6 emergency unemployment compensa7 tion established on or before Decem8 ber 31, 2025, if the State agency has 

9 not recovered such amounts as of the 

10 date of enactment of the Unemploy11 ment Insurance Integrity and Accessi12 bility Act, the State agency may waive 

13 repayment of such amounts to the 

14 State agency if it determines that— 

15 ‘‘(aa) the payment of such 

16 pandemic emergency unemploy17 ment compensation was not 

18 based on fraud on the part of the 

19 individual; and 

20 ‘‘(bb) such repayment would 

21 be contrary to equity and good 

22 conscience. 

23 ‘‘(II) RULE FOR AMOUNTS PRE24 VIOUSLY RECOVERED.—In the case of 

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1 demic emergency unemployment com2 pensation established on or before De3 cember 31, 2025, that has been com4 pletely or partially recovered by the 

5 State agency prior to the date of en6 actment of the Unemployment Insur7 ance Integrity and Accessibility Act, 

8 with respect to such amount that has 

9 been so recovered— 

10 ‘‘(aa) the waiver authority 

11 under subclause (I) of this clause 

12 shall not apply; and 

13 ‘‘(bb) the State agency may 

14 waive repayment of such recov15 ered amounts under the authority 

16 under clause (i)(I). 

17 ‘‘(C) CONTRARY TO EQUITY AND GOOD

18 CONSCIENCE.—For purposes of this paragraph, 

19 a repayment shall be considered contrary to eq20 uity and good conscience if— 

21 ‘‘(i) recovery would cause financial 

22 hardship to the person from whom it is 

23 sought; 

24 ‘‘(ii) the recipient of the overpayment 

25 can show (regardless of their financial situVerDate Sep 11 2014 03:08 Aug 09, 2024 Jkt 049200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S4663.IS S4663

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1 ation) that due to the notice that such pay2 ment would be made or because of the in3 correct payment, either they have relin4 quished a valuable right or changed posi5 tions for the worse; 

6 ‘‘(iii) recovery would be unconscion7 able under the circumstances; or 

8 ‘‘(iv) recovery would be contrary to 

9 equity and good conscience under the State 

10 law.’’. 

11 (d) FEMA DISASTER RELIEF ASSISTANCE.—Section 

12 262(b) of division N of the Consolidated Appropriations 

13 Act, 2021 (42 U.S.C. 5174 note) is amended to read as 

14 follows: 

15 ‘‘(b) REPAYMENT AND WAIVERS OF OVERPAY16 MENTS.— 

17 ‘‘(1) REPAYMENT.—Subject to paragraph (2), 

18 in the case of individuals who have received amounts 

19 of covered assistance to which they were not entitled, 

20 the State shall require such individuals to repay the 

21 amounts of such covered assistance to the State 

22 agency. 

23 ‘‘(2) WAIVERS OF OVERPAYMENTS.— 


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1 ‘‘(A) GENERAL AUTHORITY.—In the case 

2 of an overpayment of amounts of covered assist3 ance— 

4 ‘‘(i) established on or before Decem5 ber 31, 2025, a State agency may waive 

6 repayment of such amounts under para7 graph (1) if the State agency determines 

8 that— 

9 ‘‘(I) the payment of such covered 

10 assistance was without fault on the 

11 part of any such individual; and 

12 ‘‘(II) such repayment would be 

13 contrary to equity and good con14 science; and 

15 ‘‘(ii) established after December 31, 

16 2025, a State agency shall waive repay17 ment of such amounts under paragraph 

18 (1) if the State agency determines that— 

19 ‘‘(I) the payment of such covered 

20 assistance was not based on fraud on 

21 the part of the individual; and 

22 ‘‘(II) such repayment would be 

23 contrary to equity and good con24 science. 

25 ‘‘(B) ADDITIONAL AUTHORITY.— 


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1 ‘‘(i) IN GENERAL.—In addition to the 

2 waiver authority provided under subpara3 graph (A) and subject to clause (ii) of this 

4 subparagraph, in the case of an overpay5 ment of amounts of covered assistance es6 tablished on or before December 31, 2025, 

7 if the State agency has not recovered such 

8 amounts as of the date of enactment of the 

9 Unemployment Insurance Integrity and 

10 Accessibility Act, the State agency may 

11 waive repayment of such amounts to the 

12 State agency if it determines that— 

13 ‘‘(I) the payment of such covered 

14 assistance was not based on fraud on 

15 the part of the individual; and 

16 ‘‘(II) such repayment would be 

17 contrary to equity and good con18 science. 

19 ‘‘(ii) RULE FOR AMOUNTS PRE20 VIOUSLY RECOVERED.—In the case of an 

21 overpayment of amounts of covered assist22 ance established on or before December 31, 

23 2025, that has been completely or partially 

24 recovered by the State agency prior to the 

25 date of enactment of the Unemployment 


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1 Insurance Integrity and Accessibility Act, 

2 with respect to such amount that has been 

3 so recovered— 

4 ‘‘(I) the waiver authority under 

5 clause (i) of this subparagraph shall 

6 not apply; and 

7 ‘‘(II) the State agency may waive 

8 repayment of such recovered amounts 

9 under the authority under subpara10 graph (A)(i). 

11 ‘‘(C) CONTRARY TO EQUITY AND GOOD

12 CONSCIENCE.—For purposes of this subsection, 

13 a repayment shall be considered contrary to eq14 uity and good conscience if— 

15 ‘‘(i) recovery would cause financial 

16 hardship to the person from whom it is 

17 sought; 

18 ‘‘(ii) the recipient of the overpayment 

19 can show (regardless of their financial situ20 ation) that due to the notice that such pay21 ment would be made or because of the in22 correct payment, either they have relin23 quished a valuable right or changed posi24 tions for the worse; 


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1 ‘‘(iii) recovery would be unconscion2 able under the circumstances; or 

3 ‘‘(iv) recovery would be contrary to 

4 equity and good conscience under the State 

5 law.’’. 

6 (e) ONGOING REVIEW AND REPORTS TO CON7 GRESS.— 

8 (1) ONGOING REVIEW.—The Comptroller Gen9 eral of the United States (in this subsection referred 

10 to as the ‘‘Comptroller General’’) shall conduct an 

11 ongoing review of the implementation of the provi12 sions of, and the amendments made by, this section. 

13 Such review shall include an analysis of— 

14 (A) whether waivers were properly granted 

15 to individuals who qualified for a waiver; 

16 (B) whether waivers were properly denied 

17 to individuals who did not qualify for a waiver; 

18 and 

19 (C) other matters determined appropriate 

20 by the Comptroller General. 

21 (2) REPORTS.—Not later than 1 year after the 

22 date of enactment of this subsection, and annually 

23 until the date that is 3 years after the date of enact24 ment of this section, the Comptroller General shall 

25 submit to Congress a report containing the results 


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1 of the review conducted under paragraph (1), to2 gether with recommendations for such legislation 

3 and administrative action as the Comptroller Gen4 eral determines appropriate. 

5 SEC. 103. PERMISSIBLE USE OF UNEMPLOYMENT FUND 

6 MONEY FOR PROGRAM ADMINISTRATION. 

7 (a) WITHDRAWAL STANDARD IN THE INTERNAL

8 REVENUE CODE.—Section 3304 of the Internal Revenue 

9 Code of 1986 is amended— 

10 (1) in subsection (a)(4)— 

11 (A) in subparagraph (F), by striking 

12 ‘‘and’’ at the end; and 

13 (B) by inserting after subparagraph (G) 

14 the following: 

15 ‘‘(H) subject to subsection (h) and except 

16 as provided in subparagraph (J), of those pay17 ments of benefits from a State’s unemployment 

18 fund that are determined to have been overpaid 

19 and are subsequently recovered by the State, 

20 the State may, immediately following receipt of 

21 such recovered amount, place a percentage of 

22 such recovered amount, as specified in State 

23 law (but not to exceed 5 percent), in a sub-ac24 count of the State’s account in the Unemploy25 ment Trust Fund from which money may be 


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1 withdrawn only for the uses described in sub2 section (g); 

3 ‘‘(I) of those payments of contributions (or 

4 payments in lieu of contributions) that are col5 lected as a result of an investigation and assess6 ment by a State agency, the State may, imme7 diately following receipt of such payments, place 

8 a percentage of such payments, as specified in 

9 State law (but not to exceed 5 percent), into 

10 the same sub-account of the State’s account in 

11 the Unemployment Trust Fund described in 

12 subparagraph (H) from which money may be 

13 withdrawn only for the uses described in sub14 section (g); and 

15 ‘‘(J) of those payments of pandemic unem16 ployment assistance under section 2102 of the 

17 CARES Act, Federal Pandemic Unemployment 

18 Compensation under section 2104 of such Act, 

19 Mixed Earner Unemployment Compensation 

20 under section 2104 of such Act, or pandemic 

21 emergency unemployment compensation under 

22 section 2107 of such Act that are determined to 

23 have been fraudulently overpaid and are subse24 quently recovered by the State, the State may, 

25 immediately following receipt of such recovered 


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1 amount, place up to 25 percent of such recov2 ered amount into the same sub-account of the 

3 State’s account in the Unemployment Trust 

4 Fund described in subparagraph (H) from 

5 which money may be withdrawn only for the 

6 uses described in subsection (g);’’; and 

7 (2) by adding at the end the following new sub8 sections: 

9 ‘‘(g) PERMISSIBLE USES.—The uses described in this 

10 subsection are the following: 

11 ‘‘(1) The payment of costs of deterring, detect12 ing, and preventing improper unemployment insur13 ance payments. 

14 ‘‘(2) Uses relating to the proper classification of 

15 employees. 

16 ‘‘(3) Uses relating to the provisions of State 

17 law implementing section 303(k) of the Social Secu18 rity Act. 

19 ‘‘(4) The payment to the Secretary of the 

20 Treasury to the credit of the account of the State 

21 in the Unemployment Trust Fund. 

22 ‘‘(5) Modernizing the State’s unemployment in23 surance technology infrastructure. 

24 ‘‘(6) Improving access to unemployment com25 pensation and recipiency rates for eligible workers. 


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1 ‘‘(7) Improving the timely and accurate pay2 ment of unemployment compensation. 

3 ‘‘(8) Complying with the requirements of sec4 tion 303(q) of the Social Security Act. 

5 ‘‘(9) Otherwise improving the administration of 

6 State and Federal unemployment compensation 

7 laws. 

8 ‘‘(h) LIMITATION ON RETENTION OF RECOVERED

9 FUNDS.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

11 subsection (a)(4)(H) shall not apply to a State un12 less the State law provides that, in the case of an 

13 individual who has received amounts of unemploy14 ment compensation to which they were not entitled, 

15 the State agency may waive repayment of such 

16 amounts to the State agency if it determines that— 

17 ‘‘(A) the payment of such unemployment 

18 compensation was not based on fraud on the 

19 part of the individual; and 

20 ‘‘(B)(i) the payment of such unemployment 

21 compensation was due to the error of the State 

22 agency; or 

23 ‘‘(ii) such repayment would be contrary to 

24 equity and good conscience. 


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1 ‘‘(2) REQUIREMENT NOT APPLICABLE TO PAN2 DEMIC UNEMPLOYMENT.—The requirement under 

3 paragraph (1) shall not apply to repayments of pan4 demic unemployment assistance, Federal Pandemic 

5 Unemployment Compensation, Mixed Earner Unem6 ployment Compensation, and pandemic emergency 

7 unemployment compensation. 

8 ‘‘(3) CONTRARY TO EQUITY AND GOOD CON9 SCIENCE.—For purposes of paragraph (1)(B)(ii), a 

10 repayment shall be considered contrary to equity and 

11 good conscience if— 

12 ‘‘(A) recovery would cause financial hard13 ship to the person from whom it is sought; 

14 ‘‘(B) the recipient of the overpayment can 

15 show (regardless of their financial situation) 

16 that due to the notice that such payment would 

17 be made or because of the incorrect payment, 

18 either they have relinquished a valuable right or 

19 changed positions for the worse; 

20 ‘‘(C) recovery would be unconscionable 

21 under the circumstances; or 

22 ‘‘(D) the situation meets any other criteria 

23 as determined by State law.’’. 

24 (b) DEFINITION OF UNEMPLOYMENT FUND.—Sec25 tion 3306(f) of the Internal Revenue Code of 1986 is 


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1 amended, in the third sentence, by striking ‘‘(exclusive of 

2 expenses of administration)’’ and all that follows through 

3 the period at the end of paragraph (6) and inserting ‘‘, 

4 except as otherwise provided in section 3304(a)(4) or any 

5 other provision of Federal law.’’. 

6 (c) WITHDRAWAL STANDARD IN SOCIAL SECURITY

7 ACT.—Section 303(a)(5) of the Social Security Act (42 

8 U.S.C. 503(a)(5)) is amended by striking ‘‘exclusive of ex9 penses of administration,’’ and all that follows and insert10 ing ‘‘except as otherwise provided in this section, section 

11 3304(a)(4) of the Internal Revenue Code of 1986, or any 

12 other provision of Federal law; and’’. 

13 (d) IMMEDIATE DEPOSIT REQUIREMENTS.— 

14 (1) INTERNAL REVENUE CODE REQUIRE15 MENT.—Paragraph (3) of section 3304(a) of the In16 ternal Revenue Code of 1986 is amended to read as 

17 follows: 

18 ‘‘(3) all money received in the unemployment 

19 fund of the State shall immediately upon such re20 ceipt be paid over to the Secretary of the Treasury 

21 to the credit of the Unemployment Trust Fund es22 tablished by section 904 of the Social Security Act 

23 (42 U.S.C. 1104), except for— 

24 ‘‘(A) refunds of sums erroneously paid into 

25 the unemployment fund of the State; 


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1 ‘‘(B) refunds paid in accordance with the 

2 provisions of section 3305(b); and 

3 ‘‘(C) amounts placed in a sub-account of 

4 the State’s account in the Unemployment Trust 

5 Fund pursuant to subparagraph (H), (I), or (J) 

6 of paragraph (4);’’. 

7 (2) SOCIAL SECURITY ACT REQUIREMENT.— 

8 Section 303(a)(4) of the Social Security Act (42 

9 U.S.C. 503(a)(4)) is amended by striking ‘‘(except 

10 for refunds’’ and all that follows through ‘‘Federal 

11 Unemployment Tax Act)’’ and inserting ‘‘(except as 

12 otherwise provided in this section, section 

13 3304(a)(3) of the Internal Revenue Code of 1986, or 

14 any other provision of Federal law)’’. 

15 (e) APPLICATION TO FEDERAL PAYMENTS.—Section 

16 303 of the Social Security Act (42 U.S.C. 503) is amended 

17 by adding at the end the following new subsection: 

18 ‘‘(n) RECOVERY OF FEDERAL PAYMENTS.— 

19 ‘‘(1) IN GENERAL.—As a condition for admin20 istering any unemployment compensation program of 

21 the United States (as defined in paragraph (2)) as 

22 an agent of the United States, a State shall, with re23 spect to erroneous payments made under such pro24 grams by the State, use the authority provided 

25 under subparagraphs (H) and (I) of section 


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1 3304(a)(4) of the Internal Revenue Code of 1986 in 

2 the same manner as such authority is used with re3 spect to erroneous payments made under the State 

4 unemployment compensation law. With respect to er5 roneous Federal payments recovered consistent with 

6 the authority under such subparagraphs (H) and 

7 (I), the State shall immediately place the same per8 centage of the recovered payments into the same 

9 sub-account of the State’s account in the Unemploy10 ment Trust Fund as provided in the State law im11 plementing such section 3304(a)(4). 

12 ‘‘(2) DEFINITION.—For purposes of this sub13 section, the term ‘unemployment compensation pro14 gram of the United States’ means— 

15 ‘‘(A) unemployment compensation for Fed16 eral civilian employees under subchapter I of 

17 chapter 85 of title 5, United States Code; 

18 ‘‘(B) unemployment compensation for ex19 servicemembers under subchapter II of chapter 

20 85 of title 5, United States Code; 

21 ‘‘(C) extended benefits under the Federal22 State Extended Unemployment Compensation 

23 Act of 1970 (26 U.S.C. 3304 note); 

24 ‘‘(D) any Federal temporary extension of 

25 unemployment compensation; 


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1 ‘‘(E) any Federal program that increases 

2 the weekly amount of unemployment compensa3 tion payable to individuals; and 

4 ‘‘(F) any other Federal program providing 

5 for the payment of unemployment compensa6 tion, as determined by the Secretary.’’. 

7 (f) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to overpayments or payments of 

9 contributions (or payments in lieu of contributions) that 

10 are collected as a result of an investigation and assessment 

11 by the State agency after the earlier of— 

12 (1) the date the State changes its statutes, reg13 ulations, or policies in order to comply with such 

14 amendment; or 

15 (2) December 31, 2026. 

16 (g) IMPLEMENTATION.— 

17 (1) GUIDANCE.—Not later than 90 days after 

18 the date of enactment of this section, the Secretary 

19 of Labor shall provide guidance to States for imple20 menting the amendments made by this section. 

21 (2) REGULATIONS.— 

22 (A) INTERIM FINAL RULE.—Not later than 

23 1 year after the date of enactment of this sec24 tion, the Secretary of Labor shall issue an inVerDate Sep 11 2014 03:08 Aug 09, 2024 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S4663.IS S4663

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1 terim final rule to carry out the amendments 

2 made by section. 

3 (B) FINAL RULE.—Not later than 2 years 

4 after the date of enactment of this section, the 

5 Secretary of Labor shall issue a final rule to 

6 carry out the amendments made by section. 

7 TITLE II—UNEMPLOYMENT IN8 SURANCE PROGRAM INTEG9 RITY 

10 SEC. 201. USE OF NATIONAL DIRECTORY OF NEW HIRES IN 

11 ADMINISTRATION OF UNEMPLOYMENT COM12 PENSATION PROGRAMS. 

13 Section 303 of the Social Security Act (42 U.S.C. 

14 503), as amended by section 103(e), is amended by adding 

15 at the end the following new subsection: 

16 ‘‘(o) USE OF NATIONAL DIRECTORY OF NEW

17 HIRES.— 

18 ‘‘(1) IN GENERAL.—The State agency charged 

19 with administration of the State law shall have in 

20 place procedures to— 

21 ‘‘(A) compare information in the National 

22 Directory of New Hires established under sec23 tion 453(i) against unemployment compensation 

24 data to identify any individuals claiming unem25 ployment compensation who may have become 


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1 employed, in accordance with any regulations or 

2 guidance that the Secretary of Health and 

3 Human Services may issue and consistent with 

4 the computer matching provisions of the Pri5 vacy Act of 1974; 

6 ‘‘(B) take timely action to verify whether 

7 the individuals identified pursuant to subpara8 graph (A) are employed; and 

9 ‘‘(C) upon verification pursuant to sub10 paragraph (B), take appropriate action to sus11 pend or modify unemployment compensation 

12 payments, and to initiate recovery of any im13 proper unemployment compensation payments 

14 that have been made. 

15 ‘‘(2) ENFORCEMENT.—Whenever the Secretary 

16 of Labor, after reasonable notice and opportunity for 

17 hearing to the State agency charged with the admin18 istration of the State law, finds that there is a fail19 ure to comply substantially with the requirements of 

20 paragraph (1), the Secretary of Labor shall notify 

21 such State agency that further payments will not be 

22 made to the State until the Secretary of Labor is 

23 satisfied that there is no longer any such failure. 

24 Until the Secretary of Labor is so satisfied, such 


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1 Secretary shall make no future certification to the 

2 Secretary of the Treasury with respect to the State. 

3 ‘‘(3) EFFECTIVE DATE.—The requirements of 

4 paragraph (1) shall apply to weeks of unemployment 

5 beginning on or after the earlier of— 

6 ‘‘(A) the date the State changes its stat7 utes, regulations, or policies in order to comply 

8 with such requirements; or 

9 ‘‘(B) December 31, 2026.’’. 

10 SEC. 202. ELECTRONIC TRANSMISSION OF UNEMPLOYMENT 

11 COMPENSATION INFORMATION. 

12 Section 303 of the Social Security Act (42 U.S.C. 

13 503), as amended by sections 103(e) and 201, is amended 

14 by adding at the end the following new subsection: 

15 ‘‘(p) ELECTRONIC TRANSMISSION OF UNEMPLOY16 MENT COMPENSATION INFORMATION.— 

17 ‘‘(1) IN GENERAL.—The State agency charged 

18 with administration of the State law shall use a sys19 tem designated by the Secretary of Labor for auto20 mated electronic transmission between such State 

21 agency and employers or their agents of requests for 

22 information relating to unemployment compensation 

23 and the provision of such information to such State 

24 agency. 


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1 ‘‘(2) EMPLOYER PARTICIPATION.—The Sec2 retary of Labor shall work with the State agency 

3 charged with administration of the State law to in4 crease the number of employers using the system de5 scribed in paragraph (1) and to resolve any technical 

6 challenges with the system. 

7 ‘‘(3) REPORTS ON USE OF ELECTRONIC SYS8 TEM.—Not later than December 31, 2027 (and if 

9 subsequently requested by the Committee on Fi10 nance of the Senate or the Committee on Ways and 

11 Means of the House of Representatives, but in no 

12 case more once per year)), the Secretary shall sub13 mit to such Committees a report that contains infor14 mation on— 

15 ‘‘(A) the proportion of employers using the 

16 designated system described in paragraph (1); 

17 ‘‘(B) the reasons reported by employers for 

18 not using such system; 

19 ‘‘(C) the efforts that States are under20 taking to increase employers’ use of such sys21 tem; 

22 ‘‘(D) which components and functions of 

23 such system States and employers in the States 

24 are using; and 


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1 ‘‘(E) other information determined appro2 priate by the Secretary. 

3 ‘‘(4) ENFORCEMENT.—Whenever the Secretary 

4 of Labor, after reasonable notice and opportunity for 

5 hearing to the State agency charged with the admin6 istration of the State law, finds that there is a fail7 ure to comply substantially with the requirements of 

8 this subsection, the Secretary of Labor shall notify 

9 such State agency that further payments will not be 

10 made to the State until the Secretary of Labor is 

11 satisfied that there is no longer any such failure. 

12 Until the Secretary of Labor is so satisfied, such 

13 Secretary shall make no future certification to the 

14 Secretary of the Treasury with respect to the State. 

15 ‘‘(5) EFFECTIVE DATE.—The requirements of 

16 this subsection shall apply to weeks of unemploy17 ment beginning on or after the earlier of— 

18 ‘‘(A) the date the State changes its stat19 utes, regulations, or policies in order to comply 

20 with such requirements; or 

21 ‘‘(B) December 31, 2026.’’. 


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1 SEC. 203. UNEMPLOYMENT COMPENSATION DATA CROSS2 MATCHING. 

3 (a) IN GENERAL.—Section 303(a) of the Social Secu4 rity Act (42 U.S.C. 503(a)), as amended by section 103, 

5 is amended— 

6 (1) in the matter preceding paragraph (1), by 

7 striking ‘‘provision for—’’ and inserting ‘‘provision 

8 for each of the following:’’; 

9 (2) at the end of each of paragraphs (1) 

10 through (10) and paragraph (11)(A), by striking ‘‘; 

11 and’’ and inserting a period; and 

12 (3) by adding at the end the following new 

13 paragraph: 

14 ‘‘(13) The State agency charged with adminis15 tration of the State law shall use the system des16 ignated by the Secretary of Labor for cross-match17 ing claimants of unemployment compensation under 

18 State law against any databases in the system to 

19 prevent and detect fraud and improper payments.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 subsection (a) shall apply to weeks of unemployment be22 ginning on or after the earlier of— 

23 (1) the date the State changes its statutes, reg24 ulations, or policies in order to comply with such 

25 amendment; or 

26 (2) December 31, 2026. 


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1 SEC. 204. INCARCERATED INDIVIDUALS. 

2 (a) IN GENERAL.—Section 303(a) of the Social Secu3 rity Act (42 U.S.C. 503(a)), as amended by sections 103 

4 and 203(a), is amended by adding at the end the following 

5 new paragraph: 

6 ‘‘(14) The regular cross-matching of claimants 

7 for unemployment compensation under the State 

8 law, or under Federal law administered by the State 

9 pursuant to an agreement, with the prisoner infor10 mation maintained under sections 202(x) and 

11 1611(e) by the Social Security Administration or 

12 such other repositories of information identifying in13 dividuals who are incarcerated as the Secretary of 

14 Labor may require, for purposes of assisting in the 

15 determination of eligibility, subject to appropriate 

16 safeguards determined by the disclosing agency to 

17 ensure such information is used only for authorized 

18 purposes.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall apply to weeks of unemployment be21 ginning on or after the earlier of— 

22 (1) the date the State changes its statutes, reg23 ulations, or policies in order to comply with such 

24 amendment; or 

25 (2) December 31, 2026. 


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1 SEC. 205. REGULATIONS. 

2 (a) INTERIM FINAL RULE.—Not later than 1 year 

3 after the date of enactment of this section, the Secretary 

4 of Labor shall issue an interim final rule to carry out the 

5 amendments made by sections 201, 202, 203, and 204. 

6 (b) FINAL RULE.—Not later than 2 years after the 

7 date of enactment of this section, the Secretary of Labor 

8 shall issue a final rule to carry out the amendments made 

9 by sections 201, 202, 203, and 204. 

10 (c) REQUIREMENTS.—In issuing the interim final 

11 rule under subsection (a) and the final rule under sub12 section (b), the Secretary of Labor shall— 

13 (1) take into account benefit access, benefit 

14 timeliness, program integrity (including fraud pre15 vention), due process, and other factors determined 

16 appropriate by the Secretary; 

17 (2) specify— 

18 (A) the method and frequency of cross19 matching necessary to minimize susceptibility to 

20 fraud while ensuring benefit access and timeli21 ness; 

22 (B) methods to ensure that data used for 

23 cross-matching is accurate and up-to-date; 

24 (C) methods of evaluating the systems de25 scribed in the amendments made by sections 

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1 venting and detecting fraud and improper pay2 ments; 

3 (D) methods for ensuring that such sys4 tems do not result in the flagging of claims 

5 based on the personal characteristics of the ap6 plicant or claimant, such as race, color, religion, 

7 sex, national origin, age, disability, or political 

8 affiliation or belief; 

9 (E) methods for ensuring that such sys10 tems comply with best practices for privacy and 

11 cybersecurity, including ensuring that the cy12 bersecurity of such systems is consistent with 

13 the relevant cybersecurity laws (including regu14 lations), policies, and standards that would 

15 apply if the system were operated by an agency 

16 in the executive branch; and 

17 (F) other information necessary to ensure 

18 proper implementation of the amendments 

19 made by sections 201, 202, 203, and 204, as 

20 determined appropriate by the Secretary of 

21 Labor. 


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1 TITLE III—UNEMPLOYMENT IN2 SURANCE ADMINISTRATION 

3 AND TECHNOLOGY 

4 SEC. 301. ACCESS TO BENEFITS. 

5 (a) IN GENERAL.—Section 303 of the Social Security 

6 Act (42 U.S.C. 503), as amended by sections 103(e), 201, 

7 and 202, is amended by adding at the end the following 

8 new subsection: 

9 ‘‘(q) ACCESS TO BENEFITS.— 

10 ‘‘(1) IN GENERAL.—The State agency charged 

11 with administration of the State law shall, in accord12 ance with standards established by the Secretary— 

13 ‘‘(A) provide guidance to employers in the 

14 State on best practices for providing written in15 formation to employees upon separation from 

16 employment regarding how the employee may 

17 file a claim for unemployment compensation 

18 and how the employee may find more informa19 tion from the State agency about eligibility cri20 teria for unemployment compensation; 

21 ‘‘(B) have processes in place so that em22 ployers may notify the State workforce agency 

23 of employees who may apply for unemployment 

24 compensation due to layoffs through no fault of 

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1 downs, partial unemployment, and short-time 

2 compensation; 

3 ‘‘(C) ensure that any online claim filing 

4 system used by the State meets the require5 ments described in paragraph (2); and 

6 ‘‘(D) ensure that alternate means of claim 

7 filing (such as phone and in-person options) are 

8 available. 

9 ‘‘(2) ACCESS REQUIREMENTS FOR ONLINE

10 CLAIM FILING.—The requirements described in this 

11 paragraph with respect to an online claim filing sys12 tem are the following: 

13 ‘‘(A) The online claim filing system— 

14 ‘‘(i) ensures that the process of filing 

15 initial and continuing claims for unemploy16 ment compensation can be readily under17 stood and accomplished by claimants (in18 cluding individuals with limited English 

19 proficiency, individuals with disabilities (in 

20 compliance with section 508 of the Reha21 bilitation Act of 1973 (29 U.S.C. 794d)), 

22 older individuals, and individuals with lit23 eracy challenges); and 

24 ‘‘(ii) provides clear methods of seeking 

25 assistance if a claimant is unable to readily 


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1 understand or accomplish the process of 

2 filing initial or continuing claims. 

3 ‘‘(B) The online claim filing system— 

4 ‘‘(i) allows claimants to access the on5 line claim filing system and file a claim in 

6 any language spoken at home by more 

7 than 1 percent of the State’s population, 

8 as determined by the Secretary using data 

9 from the Bureau of the Census (with such 

10 translations either completed by human 

11 translators or, in the case of a translation 

12 completed by translation software, re13 viewed by a human translator); and 

14 ‘‘(ii) complies with the requirements 

15 of the Plain Writing Act of 2010 (5 U.S.C. 

16 301 note), including requirements related 

17 to providing information that is clear, con18 cise, and well-organized. 

19 ‘‘(C) The online claim filing system is de20 signed to align with the requirements of the 

21 Connected Government Act and is accessible 

22 and optimized for all commonly used operating 

23 systems and web browsers, including operating 

24 systems and web browsers commonly used on 

25 desktop computers, tablets, and mobile devices, 


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1 such that any features of the online claim filing 

2 system (such as the ability to upload docu3 mentation) that are available in the desktop 

4 version of the online claim filing system are also 

5 available in the tablet and mobile versions and 

6 are available for all operating systems and web 

7 browsers commonly used on such devices. 

8 ‘‘(D) The online claim filing system allows 

9 for electronic submission of documentation re10 quired to support a claim, including the ability 

11 of claimants to scan or photograph and submit 

12 documentation using a tablet or mobile device. 

13 ‘‘(E) The online claim filing system allows 

14 claimants to access such system 24 hours a 

15 day, 7 days a week, with the exception of sched16 uled and emergency maintenance that shall be 

17 conducted, to the extent practicable, at nonpeak 

18 hours. 

19 ‘‘(F) The online claim filing system is ca20 pable of deploying multiple methods of commu21 nication with claimants, such as short message 

22 service (SMS) message, email, postal mail, live 

23 chat, or chatbots. 

24 ‘‘(3) ENFORCEMENT.—Whenever the Secretary 

25 of Labor, after reasonable notice and opportunity for 


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1 hearing to the State agency charged with the admin2 istration of the State law, finds that there is a fail3 ure to comply substantially with the requirements of 

4 this subsection, the Secretary of Labor shall notify 

5 such State agency that further payments will not be 

6 made to the State until the Secretary of Labor is 

7 satisfied that there is no longer any such failure. 

8 Until the Secretary of Labor is so satisfied, such 

9 Secretary shall make no future certification to the 

10 Secretary of the Treasury with respect to the State. 

11 ‘‘(4) EFFECTIVE DATE.—The requirements of 

12 this subsection shall apply to weeks of unemploy13 ment beginning on or after the earlier of— 

14 ‘‘(A) the date the State changes its stat15 utes, regulations, or policies in order to comply 

16 with such requirements; or 

17 ‘‘(B) December 31, 2027.’’. 

18 (b) REGULATIONS.— 

19 (1) FINAL RULE.—Not later than 2 years after 

20 the date of enactment of this section, the Secretary 

21 of Labor shall issue a final rule to carry out the 

22 amendment made by subsection (a). 

23 (2) REQUIREMENTS.—In issuing the final rule 

24 under paragraph (1), the Secretary of Labor shall 

25 take into account— 


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1 (A) benefit access, benefit timeliness, pro2 gram integrity (including fraud prevention), 

3 and due process; 

4 (B) how States may meet the requirements 

5 of section 303(q) of the Social Security Act, as 

6 added by subsection (a), while minimizing sus7 ceptibility to fraud; 

8 (C) best practices related to user experi9 ence, technology modernization, and procure10 ment, including best practices for minimizing 

11 the cost of modernization; and 

12 (D) other factors determined appropriate 

13 by the Secretary of Labor. 

14 SEC. 302. GAO STUDY AND REPORT ON THE USE OF FUND15 ING FOR UNEMPLOYMENT FRAUD PREVEN16 TION, EQUITABLE ACCESS, AND TIMELY PAY17 MENTS. 

18 (a) STUDY.—The Comptroller General of the United 

19 States (in this section referred to as the ‘‘Comptroller 

20 General’’) shall conduct a study on the obligation and use 

21 of funds under section 2118 of division A of the CARES 

22 Act (15 U.S.C. 9034), as added by section 9032 of the 

23 American Rescue Plan Act of 2021 (Public Law 117–2). 

24 Such study shall include an analysis of the following: 


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1 (1) How the amounts appropriated under such 

2 section 2118 are being utilized by the Secretary of 

3 Labor and States and territories to detect and pre4 vent fraud, promote equitable access, and ensure 

5 timely payment of benefits under unemployment 

6 compensation programs, including the percentage of 

7 such amounts that were used for each of the 3 per8 missible uses under subsection (b) of such section 

9 2118. 

10 (2) The progress and implementation of 

11 projects funded under such section 2118 arising 

12 from Department of Labor Tiger Team rec13 ommendations, including any reasons for deviation 

14 from agreed-upon negotiated recommendations 

15 issued by Department of Labor Tiger Teams. 

16 (3) Outcome metrics used by States and terri17 tories and the Secretary to demonstrate effectiveness 

18 of actions taken using the amounts appropriated 

19 under such section 2118 in achieving the purposes 

20 of detecting and preventing fraud, promoting equi21 table access, and ensuring the timely payment of 

22 benefits. 

23 (4) Whether any of the amounts appropriated 

24 under such section 2118 were used for any purpose 


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1 other than the 3 permissible uses under subsection 

2 (b) of such section 2118. 

3 (5) The methodology used by the Secretary to 

4 determine funding allocations of the amounts appro5 priated under such section 2118. 

6 (6) The total amount of unobligated funds re7 maining under such section 2118. 

8 (7) How amounts appropriated under such sec9 tion 2118 have been used for technology moderniza10 tion, and whether States and territories have re11 maining technology modernization needs. 

12 (8) The total amount awarded under each 

13 grant, the projects undertaken by each State and 

14 territory using such grant, the amount allocated for 

15 each such project, whether such project is complete 

16 or incomplete, and, if incomplete, an estimate for the 

17 completion of each project. 

18 (9) Whether States and territories will be able 

19 to continue activities to detect and prevent fraud, 

20 promote equitable access, and ensure timely payment 

21 of benefits funded with the amounts appropriated 

22 under such section 2118 when such amounts are ex23 pended. 

24 (10) Contracts, grants, cooperative agreements, 

25 progress reports (including ETA ARPA 9178s), and 


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1 other supporting documents relating to agreements 

2 entered into using amounts appropriated under such 

3 section 2118, and the amount spent on such con4 tracts, grants, agreements, and progress reports. 

5 (11) Any other area determined appropriate by 

6 the Comptroller General. 

7 (b) REPORT.—Not later than 2 years after the date 

8 of enactment of this section, the Comptroller General shall 

9 submit to Congress a report containing the results of the 

10 study conducted under subsection (a), together with rec11 ommendations for such legislation and administrative ac12 tion as the Comptroller General determines appropriate. 

Æ 


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