I 
117TH CONGRESS 
1ST SESSION H. R. 4190 
To impose anti-fraud requirements with respect to certain unemployment 
benefits authorized under the CARES Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2021 
Mrs. STEEL (for herself, Mr. MCCARTHY, Mr. HARDER of California, Mr. 
LAMBORN, Mr. LAMALFA, Mr. NUNES, Mr. ISSA, Mr. GARCIA of Cali-
fornia, Mr. CALVERT, Mr. MCCLINTOCK, and Mr. VAN DREW) introduced 
the following bill; which was referred to the Committee on Ways and 
Means, and in addition to the Committee on the Judiciary, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To impose anti-fraud requirements with respect to certain 
unemployment benefits authorized under the CARES 
Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pandemic Unemploy-
ment Assistance Fraud Protection Act’’. 
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TITLE I—TAXPAYER AND UNEM-
PLOYED 
WORKER 
PROTEC-
TION 
SEC. 101. STATE ANTI-FRAUD REQUIREMENTS. 
(a) IN GENERAL.—Section 2118 of the CARES Act 
(15 U.S.C. 9034) is amended— 
(1) in subsection (b)(3), by inserting ‘‘the devel-
opment and implementation of a recovery plan and 
the establishment of an anti-fraud task force as de-
scribed in subsection (d) and’’ after ‘‘including’’; 
(2) by adding at the end the following: 
‘‘(d) ANTI-FRAUD REQUIREMENTS.— 
‘‘(1) IN GENERAL.—As a condition of receiving 
a grant under subsection (b)(3), the Secretary of 
Labor shall require that each State or territory re-
ceiving such a grant take the following actions: 
‘‘(A) RECOVERY PLAN.—Not later than 30 
days after the date of enactment of this sub-
section, each such State or territory shall sub-
mit to the Secretary of Labor a plan to recover 
all amounts of pandemic unemployment assist-
ance paid under section 2102 to individuals who 
fraudulently obtained such assistance. 
‘‘(B) TASK
FORCE.—Not later than 90 
days after the date of enactment of this sub-
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section, each such State or territory shall estab-
lish an anti-fraud task force to investigate and 
recover amounts described in paragraph (1), 
and to develop a strategy for the implementa-
tion of the plan described in such paragraph. 
Such task force shall seek the cooperation of 
relevant entities in the State or territory, in-
cluding local law enforcement, State law en-
forcement, and the State Office of the Inspector 
General. 
‘‘(C) REPORTS
BY
STATE
OR
TERRI-
TORY.— 
‘‘(i) IN GENERAL.—At such times and 
in such manner as the Secretary of Labor 
may provide, each such State or territory 
shall submit to the Secretary of Labor a 
report specifying the ratio (expressed as a 
percentage) of— 
‘‘(I) amounts described in para-
graph (1) that have not been recov-
ered as of the date of such report, to 
‘‘(II) the total amounts of pan-
demic unemployment assistance that 
have been paid to individuals under 
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section 2102 by such State or terri-
tory. 
‘‘(ii) ENFORCEMENT.—In any case in 
which the Secretary of Labor determines 
that a State or territory has failed to sub-
mit any report under clause (i), section 
1202(b)(10)(A) of the Social Security Act 
shall not apply with respect to such State 
or territory for any period after the date of 
such failure. 
‘‘(2) REPORTS BY SECRETARY OF LABOR.— 
‘‘(A) RELATING
TO
STATE
RECOVERY 
PLANS.—Not later than 45 days after the date 
of enactment of this subsection, the Secretary 
of Labor, in consultation with the Secretary of 
the Treasury, shall provide Congress with each 
plan submitted under paragraph (1)(A) and 
shall certify which such States and territories 
have submitted such a plan. 
‘‘(B) RELATING TO STATE REPORTING.— 
‘‘(i) IN GENERAL.—For each month 
beginning after the date of enactment of 
this subsection and ending on or before the 
termination date specified in clause (ii), 
the Secretary of Labor shall submit to the 
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Committee on Ways and Means of the 
House of Representatives and the Com-
mittee on Finance of the Senate a report 
that includes, subject to clause (ii), the 
percentage 
described 
in 
paragraph 
(1)(C)(i) for each State or territory that 
has received a grant under subsection 
(b)(3). 
‘‘(ii) TERMINATION DATE.—The ter-
mination date specified in this clause is the 
earlier of December 31, 2025, or, with re-
spect to each State or territory required to 
submit reports under paragraph (1)(C), 
the date of the first such report in which 
the percentage specified in such report 
does not exceed 5 percent.’’. 
(b) AUTHORIZATION OF FUNDS FOR FEDERAL LAW 
ENFORCEMENT.—There are authorized to be appropriated 
to the Attorney General $50,000,000 for each of fiscal 
years 2022 and 2023 for purposes of partnering with 
State anti-fraud task forces and State and local law en-
forcement to implement section 2118(d) of the CARES 
Act. 
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SEC. 102. RECOVERY OF OVERPAYMENTS ATTRIBUTABLE 
TO FRAUD. 
(a) RECOVERY OF OVERPAYMENTS BY THE TREAS-
URY.— 
(1) IN
GENERAL.—Section 2102(f)(3) of the 
CARES Act (15 U.S.C. 9021(f)(3)) is amended by 
adding at the end the following: ‘‘In any case in 
which a State agency makes an overpayment of as-
sistance to any individual under an agreement under 
this section, the State shall make restitution to the 
Secretary for the amount of such overpayment.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall take effect as if included in 
the enactment of the CARES Act (Public Law 116– 
136). 
(b) PROCESSING FEE FOR UNRECOVERED OVERPAY-
MENTS ATTRIBUTABLE TO FRAUD.— 
(1) IN GENERAL.—Section 3304(a) of the In-
ternal Revenue Code of 1986 is amended— 
(A) in paragraph (4), by striking ‘‘and’’ at 
the end of subparagraph (F), by inserting 
‘‘and’’ at the end of subparagraph (G), and by 
adding at the end the following: 
‘‘(H) amounts may be withdrawn for the 
payment of fees in accordance with paragraph 
(19);’’; and 
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(B) by striking ‘‘and’’ at the end of para-
graph (18), by redesignating paragraph (19) as 
paragraph (20), and by inserting after para-
graph (18) the following: 
‘‘(19) in the case of any State that fails to re-
cover at least 75 percent of amounts of pandemic 
unemployment assistance paid to individuals who 
fraudulently obtained such assistance under section 
2102 of the CARES Act prior to December 31, 
2022, the payment of a processing fee to the Sec-
retary of the Treasury, for each withdrawal made 
from the unemployment fund of the State, in a total 
amount equal to the amounts of such assistance un-
recovered as of such date, to be amortized, as deter-
mined by the Secretary of Labor, over a 5-year pe-
riod beginning on January 1, 2023, except that in 
no case may the method governing the computation 
of regular compensation (as defined in section 
205(2) of the Federal-State Extended Unemploy-
ment Compensation Act of 1970) under the State 
law be modified in a manner such that the number 
of weeks, or the average weekly benefit amount, of 
regular compensation (as so defined) which will be 
payable after any such withdrawal be less than the 
number of weeks, or the average weekly benefit 
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amount, of the average weekly benefit amount of 
regular compensation (as so defined) which would 
otherwise have been payable at such time under the 
State law, as in effect on January 1, 2020; and’’. 
(2) CONFORMING AMENDMENT TO SOCIAL SE-
CURITY ACT.—Section 303(a)(5) of the Social Secu-
rity Act (42 U.S.C. 503(a)(5)) is amended by strik-
ing ‘‘; and’’ at the end and inserting ‘‘: Provided fur-
ther; That amounts may be withdrawn for the pay-
ment of fees in accordance with paragraph (19) of 
section 3304(a) of the Internal Revenue Code of 
1986’’. 
TITLE II—PAYMENTS FOR ENTI-
TLED AMERICANS AND ANTI- 
FRAUD 
SEC. 201. STATE CROSS-CHECK REQUIREMENTS. 
(a) IN GENERAL.—Section 2102(f) of the CARES 
Act (15 U.S.C. 9021(f)) is amended by adding at the end 
the following: 
‘‘(4) COMPARING
INFORMATION
FOR
FRAUD 
PREVENTION.—As a condition of any agreement 
under this section, a State shall— 
‘‘(A) enter into an agreement with the At-
torney General under which the list of individ-
uals receiving pandemic unemployment assist-
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