Rockford Sun

Congressman Darin LaHood, representing Illinois' 16th district and serving as Chairman of the House Ways and Means Subcommittee on Work and Welfare, has expressed approval for the passage of the Pandemic Unemployment Fraud Enforcement Act. The legislation passed in the House of Representatives with a vote tally of 295 to 127. This act aims to extend the statute of limitations for addressing and prosecuting fraud related to Covid-19 pandemic unemployment benefits. It seeks to provide law enforcement with additional time to complete ongoing cases, initiate new ones, and recover billions of dollars for U.S. taxpayers.

"Congress must act quickly. We cannot retroactively change criminal liability for federal crimes," stated Rep. LaHood. He emphasized that significant oversight has been conducted by his subcommittee to assess the extent of unemployment fraud during the pandemic. According to estimates from the Government Accountability Office (GAO), between $100 billion and $135 billion was lost due to fraud, but only $5 billion has been recovered so far.

Rep. LaHood further noted that a February hearing by his subcommittee included testimony from fraud experts nationwide. One witness claimed that up to 70 percent of fraudulent unemployment benefits were acquired by Russian mobsters, Chinese hackers, and Nigerian scammers. "The Pandemic Unemployment Fraud Enforcement Act is a commonsense bill that doubles the statute of limitations so we can recover hundreds of billions of stolen taxpayer dollars," he said, adding that prosecuting offenders could deter future crimes and prevent further losses.

A background context reveals that on February 6, 2025, Rep. LaHood chaired a subcommittee hearing focused on prosecuting individuals who stole billions in Covid-19 pandemic unemployment benefits. Witnesses at this hearing advocated for extending the statute of limitations set to expire on March 27, 2025, arguing it is crucial for enabling federal investigators to continue their efforts in recovering stolen funds.

Additionally, it was pointed out during discussions that some criminals responsible for defrauding unemployment insurance are now targeting disaster benefits intended for victims affected by fires in Los Angeles and hurricanes in North Carolina.