H.R.1156 - Pandemic Unemployment Fraud Enforcement Act (119th Congress)
Summary
H.R.1156, the Pandemic Unemployment Fraud Enforcement Act, aims to amend the CARES Act by extending the statute of limitations for prosecuting fraud related to certain unemployment programs. Specifically, it extends the statute of limitations to 10 years for criminal and civil enforcement actions concerning fraud within Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, and Pandemic Emergency Unemployment Compensation programs.
The bill also rescinds $5 million from unobligated balances made available by section 2118(a) of title II of division A of Public Law 116-136, as added by section 9032 of Public Law 117-2, to offset costs. The Act's amendments will take effect upon enactment.
Expected Effects
The primary effect of this bill is to provide more time for the government to pursue cases of unemployment fraud related to pandemic relief programs. This extension could lead to more prosecutions and civil actions against individuals who fraudulently claimed benefits.
The rescission of funds may slightly reduce the availability of resources for other programs funded by the same source.
Potential Benefits
- Increased ability to prosecute unemployment fraud, potentially recovering misspent funds.
- Acts as a deterrent to future fraudulent claims on unemployment benefits.
- Strengthens the integrity of the unemployment insurance system.
- Could lead to greater public trust in government programs and fiscal responsibility.
- May result in the recovery of funds that can be reallocated to other essential services.
Potential Disadvantages
- The extended statute of limitations could lead to legal challenges based on due process or fairness, particularly if evidence becomes stale or witnesses are unavailable.
- Increased enforcement efforts could disproportionately affect lower-income individuals who may have made unintentional errors in their claims.
- The rescission of $5 million, while a small amount, could impact programs relying on those funds.
- The extended period for prosecution might create anxiety and uncertainty for individuals who received unemployment benefits during the pandemic.
- Could strain resources of the justice system.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to collect taxes and provide for the general welfare. The extension of the statute of limitations for fraud enforcement falls under Congress's power to enact laws necessary and proper for executing its enumerated powers.
However, potential challenges could arise under the Fifth Amendment's due process clause if the extended statute of limitations unduly prejudices defendants due to lost evidence or witnesses. The bill includes an exception for cases where the statute of limitations had already expired, which mitigates some concerns about retroactivity.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).