House Passes Beth Van Duyne's Recover COVID Unemployment Fraud Funds Bill

Congresswoman Beth Van Duyne (R) secured House passage of legislation aimed at recovering fraudulent COVID-era unemployment benefits that remain frozen in bank accounts and unclaimed property funds. Supporters say the bill could help return hundreds of millions of taxpayer dollars to the federal government.

What Did the House Pass?

The U.S. House of Representatives has passed H.R. 8873, the Recover COVID Unemployment Fraud in Banks Act, a bipartisan bill led by Rep. Van Duyne.

The legislation passed the House by unanimous consent after previously advancing through the House Ways and Means Committee on a 41-0 vote.

What Would the Bill Do?

The legislation is designed to recover federal unemployment insurance payments fraudulently obtained during the COVID-19 pandemic that remain frozen in financial institutions or transferred to state unclaimed property programs.

Key Provisions

• Creates a federal task force led by a National Recovery Coordinator.
• Requires coordination with state agencies and financial institutions.
• Identifies fraudulent unemployment payments held on prepaid debit cards.
• Develops recovery procedures to return funds to the federal government.
• Establishes a framework for recovering money before it becomes more difficult to track or reclaim.

Supporters say the effort could help recover nearly $1 billion in fraudulent unemployment benefits.

What Van Duyne is Saying

Rep. Beth Van Duyne: "The Recover COVID Unemployment Fraud in Banks Act provides the coordination and accountability needed to reclaim these forgotten funds, return them to taxpayers, and ensure fraudsters are held accountable."

Support from Ways and Means Leadership

Ways and Means Chairman Jason Smith (R-MO) praised the legislation and Van Duyne's role in advancing it.

Rep. Jason Smith: "Without Congressional action, hundreds of millions of taxpayer dollars could be permanently lost to fraud."

What's Next?

Having passed the House, the bill now moves to the Senate for consideration. If enacted, federal and state officials would begin coordinating efforts to identify and recover remaining fraudulent COVID-era unemployment payments.