House Report 117-521 — Resolution of Inquiry: Unemployment Insurance Fraud During the COVID–19 Pandemic

Summary

Report 117-521 of the 117th Congress, 2d Session, dated September 28, 2022, an adverse report from the Committee on Ways and Means submitted by Mr. Neal, together with dissenting views, on H. Res. 1288. The resolution of inquiry would direct the Secretary of Labor to provide the House of Representatives certain documents relating to Unemployment Insurance fraud during the COVID-19 pandemic. The committee reports unfavorably without amendment and recommends that the resolution not be agreed to. In dissenting views, Kevin Brady, Ranking Member, and Brad Wenstrup say Democrats have failed to hold an oversight hearing and that the resolution seeks communications showing the DOL's knowledge of UI dollars flowing to international crime syndicates.

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Issuer: Congressional materials
Document type: Crpt Crpt 117Hrpt521 Crpt 117Hrpt521
Case: Crpt Crpt 117Hrpt521 Crpt 117Hrpt521

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“House Report 117-521 — Resolution of Inquiry: Unemployment Insurance Fraud During the COVID–19 Pandemic.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-117hrpt521-crpt-117hrpt521/, SHA-256 1156b842db70e4ce5f6463e276d14389ff5a2ba9b082b551081eb015b4d2dd27.

Full text

117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 117–521

RESOLUTION OF INQUIRY DIRECTING THE SECRETARY OF LABOR TO PRO-
VIDE TO THE HOUSE OF REPRESENTATIVES CERTAIN DOCUMENTS IN
THE SECRETARY’S POSSESSION RELATING TO UNEMPLOYMENT INSUR-
ANCE FRAUD DURING THE COVID–19 PANDEMIC

SEPTEMBER 28, 2022.—Referred to the House Calendar and ordered to be printed

Mr. NEAL, from the Committee on Ways and Means,
submitted the following

ADVERSE REPORT
together with

DISSENTING VIEWS

[To accompany H. Res. 1288]

The Committee on Ways and Means, to whom was referred the
resolution (H. Res. 1288) of inquiry directing the Secretary of Labor
to provide to the House of Representatives certain documents in
the Secretary’s possession relating to Unemployment Insurance
fraud during the COVID–19 pandemic, having considered the
same, report unfavorably thereon without amendment and rec-
ommend that the resolution not be agreed to.
CONTENTS
Page
I. SUMMARY AND BACKGROUND ............................................................... 2
A. Purpose and Summary ..................................................................... 2
B. Background and Need for Legislation ............................................. 2
C. Legislative History ............................................................................ 3
II. EXPLANATION OF THE BILL ................................................................... 3
III. VOTES OF THE COMMITTEE .................................................................... 3
IV. BUDGET EFFECTS OF THE BILL ............................................................ 4
A. Committee Estimate of Budgetary Effects ...................................... 4
B. Statement Regarding New Budget Authority and Tax Expendi-
tures Budget Authority .................................................................. 4
C. Cost Estimate Prepared by the Congressional Budget Office ....... 4
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF
THE HOUSE .............................................................................................. 4
A. Committee Oversight Findings and Recommendations ................. 4
B. Statement of General Performance Goals and Objectives ............. 4
C. Information Relating to Unfunded Mandates ................................ 5

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D. Advisory Committee Statement ....................................................... 5
E. Applicability to Legislative Branch ................................................. 5
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F. Congressional Earmarks, Limited Tax Benefits, and Limited
Tariff Benefits ................................................................................. 5
G. Hearings ............................................................................................ 5
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 5
VII. DISSENTING VIEWS ................................................................................... 6

I. SUMMARY AND BACKGROUND
A. PURPOSE AND SUMMARY
H. Res. 1288 requests that the Secretary of Labor provide to the
House of Representatives certain documents in the Secretary’s pos-
session relating to Unemployment Insurance (UI) fraud during the
COVID–19 pandemic.
B. BACKGROUND AND NEED FOR LEGISLATION
H. Res. 1288 was introduced by Representative Jackie Walorski
on July 26, 2022. H. Res. 1288 is a resolution of inquiry which is
a means used by the House to obtain certain factual information
from the Executive Branch. Under clause 7 of rule XIII, a resolu-
tion of inquiry is subject to a motion to discharge from committee
if the resolution is not reported by the committee to which it was
referred within 14 legislative days of its introduction. Accordingly,
the Committee on Ways and Means scheduled a markup of H. Res.
1288 within the 14-day period.
The Committee reported the resolution adversely because it
would not advance ongoing successful efforts by the Department of
Labor, the Office of the Inspector General, and the Department of
Justice to recover fraudulent payments. This resolution would also
divert resources away from efforts to prevent future fraud by forc-
ing a search for documents that may not have been preserved by
the prior administration, are held solely by law enforcement agen-
cies or state agencies, or are part of ongoing criminal investiga-
tions.
The vast majority of the emergency unemployment benefits that
Congress provided during the pandemic went to American workers,
keeping 5 million Americans out of poverty,1 stabilizing demand,2
increasing GDP,3 and supporting the fastest jobs recovery in 40
years.4 However, a combination of antiquated technology and inad-
equate staffing in state unemployment offices,5 huge need for un-
employment benefits,6 and slow and sometimes shifting guidance
from the Trump Administration Department of Labor (DOL) 7 cre-
1 Frances Chen & Em Shrider, Did Unemployment Insurance Lower Official Poverty Rates in
2020?, U.S. CENSUS BUREAU (Sept. 14, 2021), https://www.census.gov/library/stories/2021/09/did-
unemployment-insurance-lower-official-poverty-rates-in-2020.html.
2 Consumption Effects of Unemployment Insurance during the Covid–19 Pandemic, JPMORGAN
CHASE & CO. (July 2020), https://www.jpmorganchase.com/institute/research/labor-markets/un-
employment-insurance-covid19-pandemic.
3 The Effects of Pandemic-Related Legislation on Output, CONG. BUDGET OFFICE (Sept. 2020),
https://www.cbo.gov/publication/56597.
4 Caleb Silver, The U.S. Labor Market Recovery in Charts, INVESTOPEDIA (Sept. 2022), https://
www.investopedia.com/the-u-s-labor-market-recovery-in-charts-6541384.
5 U.S. GOV’T. ACCOUNTABILITY OFF., GAO–22–105162, UNEMPLOYMENT INSURANCE: TRANS-
FORMATION NEEDED TO ADDRESS PROGRAM DESIGN, INFRASTRUCTURE, AND INTEGRITY RISKS
(June 7, 2022).
6 Employment & Training Admin., Unemployment Insurance Data, U.S. DEPT. OF LABOR,
https://oui.doleta.gov/unemploy/DataDashboard.asp (select ‘‘Benefits and Claims’’ then select ‘‘UI

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Weekly Continued Claims—All Programs’’ to download data) (last visited Sept. 22, 2022).
7 Robert Asaro-Angelo et al., NASWA Letter on Pandemic UI Requests, NAT’L ASS’N OF STATE
WORKFORCE AGENCIES (Jan. 7, 2022), https://www.naswa.org/government-relations/congres-
sional-testimony/naswa-letter-on-pandemic-ui-requests.

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ated an opportunity for criminal rings to file false worker claims
and steal benefits.
Using the $2 billion the Ways and Means Committee added to
the American Rescue Plan Act (ARPA),8 the Biden Administration
DOL has worked with states, the Department of Justice, and the
Office of the Inspector General 9 to identify and prosecute
fraudsters. The joint efforts have recovered over $700 million in
fraudulent payments,10 with more to come from ongoing investiga-
tions and prosecutions. DOL has also used ARPA funds to invest
in state systems that promote equity and access but prevent
fraud.11
C. LEGISLATIVE HISTORY
Background
H. Res. 1288 was introduced on July 26, 2022 by Rep. Walorski
and was referred to the Committee on Ways and Means.
Committee hearings
The committee held no hearings on H. Res. 1288.
Committee action
The Committee on Ways and Means marked up H. Res. 1288 on
September 20, 2022, and ordered the bill reported adversely (with
a quorum being present) by a vote of 23 yeas and 18 nays.
II. EXPLANATION OF THE BILL
H. Res. 1288 directs the Secretary of Labor to provide to the
House of Representatives copies of all communications among De-
partment officials related to unemployment insurance funds pro-
vided for pandemic relief flowing to foreign criminals during the
period beginning March 20, 2020, and ending on enactment of the
resolution, if such documents are in the Secretary’s possession.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of the
House of Representatives, the following statement is made con-
cerning the vote of the Committee on Ways and Means in its con-
sideration of H. Res. 1288.
The resolution was ordered reported adversely to the House by
a roll call vote of 23 yeas and 18 nays. The vote was as follows:

8 H.R. REP. NO. 117–7, at 562–613 (2021), https://www.congress.gov/117/crpt/hrpt7/CRPT–

117hrpt7.pdf.
9 National Unemployment Insurance Fraud Task Force, U.S. DEP’T OF JUSTICE, https://

www.justice.gov/coronavirus/national-unemployment-insurance-fraud-task-force (last visited
Sept. 22, 2022).
10 FY 2023 Budget Request for the Department of Labor: Hearing Before the Subcomm. on

Labor, Health and Human Services, Education, and Related Agencies of the H. Comm. on Ap-
propriations, 117th Cong. (2022) (Statement of Marty J. Walsh, Sec. of Labor).
11 US Department of Labor Awards $195.7M in Grants to 58 States, Territories, District of Co-

lumbia to Strengthen Fraud Detection, Prevention Efforts, U.S. DEP’T OF LABOR (Sept. 30, 2021),

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https://www.dol.gov/newsroom/releases/eta/eta20210930–0; US Department of Labor Awards
More Than $18M in Grants to Address Disparities in Delivery of Unemployment Benefits, Serv-
ices in 7 States, U.S. DEP’T OF LABOR (June 10, 2022), https://www.dol.gov/newsroom/releases/
eta/eta20220610–0.

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Representative Yea Nay Present Representative Yea Nay Present

Mr. Doggett ........................... X ........... ............. Mr. Brady ............................. ........... X .............
Mr. Thompson ....................... X ........... ............. Mr. Buchanan ...................... ........... X .............
Mr. Larson ............................. X ........... ............. Mr. Smith (NE) ..................... ........... X .............
Mr. Blumenauer .................... X ........... ............. Mr. Kelly ............................... ........... X .............
Mr. Kind ................................ X ........... ............. Mr. Smith (MO) .................... ........... X .............
Mr. Pascrell ........................... X ........... ............. Mr. Rice ................................ ........... X .............
Mr. Davis .............................. X ........... ............. Mr. Schweikert ..................... ........... X .............
Ms. Sánchez .......................... X ........... ............. Mr. LaHood ........................... ........... X .............
Mr. Higgins ........................... X ........... ............. Dr. Wenstrup ........................ ........... X .............
Ms. Sewell ............................. X ........... ............. Mr. Arrington ........................ ........... X .............
Ms. DelBene .......................... X ........... ............. Dr. Ferguson ......................... ........... X .............
Ms. Chu ................................ X ........... ............. Mr. Estes .............................. ........... X .............
Ms. Moore ............................. X ........... ............. Mr. Smucker ......................... ........... X .............
Mr. Kildee .............................. X ........... ............. Mr. Hern ............................... ........... X .............
Mr. Boyle ............................... X ........... ............. Mrs. Miller ............................ ........... X .............
Mr. Beyer ............................... ........... ........... ............. Dr. Murphy ........................... ........... X .............
Mr. Evans .............................. X ........... ............. Mr. Kustoff ........................... ........... X .............
Mr. Schneider ........................ X ........... ............. .............................................. ........... ........... .............
Mr. Suozzi ............................. X ........... ............. .............................................. ........... ........... .............
Mr. Panetta ........................... X ........... ............. .............................................. ........... ........... .............
Mrs. Murphy .......................... X ........... ............. .............................................. ........... ........... .............
Mr. Gomez ............................. X ........... ............. .............................................. ........... ........... .............
Mr. Horsford .......................... ........... X ............. .............................................. ........... ........... .............
Ms. Plaskett .......................... X ........... ............. .............................................. ........... ........... .............
Chairman Neal ...................... X ........... ............. .............................................. ........... ........... .............
Totals ........................... 23 ........... ............. Totals .......................... ........... 18 .............

IV. BUDGET EFFECTS OF THE BILL
A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS
Clause 3(d) of rule XIII of the Rules of the House of Representa-
tives is inapplicable.
B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX
EXPENDITURES BUDGET AUTHORITY
Clause 3(c)(2) of rule XIII of the Rules of the House of Represent-
atives is inapplicable.
C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET
OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the Committee advises that the Congres-
sional Budget Office did not provide a cost estimate of the resolu-
tion.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE
RULES OF THE HOUSE
A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
With respect to clause 3(c)(1) of rule XIII and clause 2(b)(1) of
rule X of the Rules of the House of Representatives, the Committee
made findings and recommendations that are reflected in this re-
port.
B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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With to clause 3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee advises that the bill does not au-

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thorize funding, so no statement of general performance goals and
objectives is required.
C. INFORMATION RELATING TO UNFUNDED MANDATES
This information is provided in accordance with section 423 of
the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104–4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has deter-
mined that the bill does not impose a Federal intergovernmental
mandate on State, local, or tribal governments.
D. ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by the bill.
E. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the bill does not relate to the terms
and conditions of employment or access to public services or accom-
modations within the meaning of section 102(b)(2) of the Congres-
sional Accountability Act.
F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee has carefully reviewed the pro-
visions of the bill, and states that the provisions of the bill do not
contain any congressional earmarks, limited tax benefits, or limited
tariff benefits within the meaning of the rule.
G. HEARINGS
In relation to compliance with clause 3(c)(6) of rule XIII of the
Rules of the House of Representatives, the Committee states that
no hearings were held on this resolution.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL AS
REPORTED
In compliance with clause 3(e)(1) of rule XIII of the Rules of the
House of Representatives, the Committee advises that H. Res. 1288
does not make any changes to existing law.

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VII. DISSENTING VIEWS
Committee Republicans strongly oppose the Committee’s action
of unfavorably reporting H. Res. 1288, Resolution of inquiry direct-
ing the Secretary of Labor to provide to the House of Representa-
tives certain documents in the Secretary’s possession relating to
Unemployment Insurance Fraud during the COVID–19 pandemic.
Congressional oversight is one of the most important responsibil-
ities of the U.S. Congress, and Resolutions of Inquiry (ROIs) are
one of the methods used by the U.S. House of Representatives to
obtain information from the executive branch. ROIs simply demand
that the administration turn over basic information to Congress.
This information is critical because it allows the Congress the en-
sure the executive branch’s compliance with congressional intent;
evaluate program performance; prevent the executive branch’s en-
croachment on the legislative branch’s powers; assess an agency’s
ability to manage and carry out program objectives; and acquire in-
formation from the executive branch that can inform policymaking.
Moreover, Congressional Republicans have repeatedly sought in-
formation from the Administration about the expected and actual
impact of these policies. Transparency is essential because it pro-
motes accountability and provides information for the Congress and
Americans about what the federal government is doing. Despite the
Biden Administration stating that President Biden would ‘‘bring
transparency and truth back to the government to share the truth,
even when it’s hard to hear,’’ the Administration has ignored the
need for congressional oversight and completely failed on its prom-
ise. The American people deserve to know how their government
works and we will hold the Biden Administration accountable for
its disastrous policies.
Since the summer of 2020, repeated alerts from federal law en-
forcement agencies warned of targeted efforts involving organized
cybercrime, foreign actors, and international crime rings using sto-
len identities of American citizens to obtain fraudulent unemploy-
ment benefits. The Biden Administration has no idea exactly how
many tax dollars have been stolen or improperly paid. In February
2022, the White House estimated that 19 percent of total COVID–
19 unemployment insurance (UI) payments were lost to fraud—of-
fering a low estimate of over $80 billion. By contrast, the U.S. De-
partment of Labor’s (DOL) estimate puts that number much higher
and outside experts say the number could be as high as $400 bil-
lion. Moreover, the DOL has exacerbated the amount of fraud by
allowing the use of blanket waivers that would let states off the
hook for due diligence and fact finding for large volumes of sus-
picious unemployment claims potentially involving billions of fraud-
ulently obtained taxpayer dollars.
For nearly two years Republicans have been fighting against un-
checked unemployment fraud and abuse of taxpayer dollars. For

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example, Republicans have sent letters requesting information
from the administration, sent letters to Committee Democrats re-
questing an oversight hearing, and introduced multiple pieces of
legislation to stop the pay and chase model of benefits and go after
criminal actors. Meanwhile, Democrats refuse to even acknowledge
the problem and have failed to hold a single oversight hearing on
this issue.
To continue our oversight efforts on this issue, this resolution
asks for communications showing the DOL’s knowledge of UI dol-
lars flowing to international crime syndicates. Given the clear need
for oversight on this issue it is disappointing that Committee
Democrats have blocked the request for this information.
KEVIN BRADY,
Ranking Member.
BRAD WENSTRUP.

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