[House Report 117-521]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-521
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RESOLUTION 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
_______
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 recommend 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
Expenditures 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
D. Advisory Committee Statement........................ 5
E. Applicability to Legislative Branch................. 5
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 possession 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 resolution 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 forcing a search for documents that may
not have been preserved by the prior administration, are held
solely by law enforcement agencies or state agencies, or are
part of ongoing criminal investigations.
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 inadequate staffing in state
unemployment offices,\5\ huge need for unemployment
benefits,\6\ and slow and sometimes shifting guidance from the
Trump Administration Department of Labor (DOL)\7\ created an
opportunity for criminal rings to file false worker claims and
steal benefits.
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\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/unemployment-
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: Transformation 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 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/congressional-testimony/
naswa-letter-on-pandemic-ui-requests.
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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 investigations and prosecutions. DOL has also used ARPA
funds to invest in state systems that promote equity and access
but prevent fraud.\11\
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\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 Appropriations, 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 Columbia to Strengthen Fraud Detection,
Prevention Efforts, U.S. Dep't of Labor (Sept. 30, 2021), 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, Services 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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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
Department officials related to unemployment insurance funds
provided 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
concerning the vote of the Committee on Ways and Means in its
consideration 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:
----------------------------------------------------------------------------------------------------------------
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. Sanchez.................... 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 .........
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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
Representatives 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
Representatives 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
Congressional Budget Office did not provide a cost estimate of
the resolution.
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 report.
B. Statement of General Performance Goals and Objectives
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 authorize 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
determined 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 accommodations within the meaning of section 102(b)(2) of
the Congressional 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 provisions 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.
VII. DISSENTING VIEWS
Committee Republicans strongly oppose the Committee's
action of unfavorably reporting H. Res. 1288, Resolution 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.
Congressional oversight is one of the most important
responsibilities 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 ensure the executive
branch's compliance with congressional intent; evaluate program
performance; prevent the executive branch's encroachment on the
legislative branch's powers; assess an agency's ability to
manage and carry out program objectives; and acquire
information from the executive branch that can inform
policymaking.
Moreover, Congressional Republicans have repeatedly sought
information from the Administration about the expected and
actual impact of these policies. Transparency is essential
because it promotes 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 promise. 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
enforcement agencies warned of targeted efforts involving
organized cybercrime, foreign actors, and international crime
rings using stolen identities of American citizens to obtain
fraudulent unemployment 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--offering a low estimate of over
$80 billion. By contrast, the U.S. Department of Labor's (DOL)
estimate puts that number much higher and outside experts say
the number could be as high as $400 billion. 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 suspicious
unemployment claims potentially involving billions of
fraudulently obtained taxpayer dollars.
For nearly two years Republicans have been fighting against
unchecked unemployment fraud and abuse of taxpayer dollars. For
example, Republicans have sent letters requesting information
from the administration, sent letters to Committee Democrats
requesting 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 dollars 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.
[all]