Recover COVID Unemployment Fraud in Banks Act
- Bill Number
- H.R. 8873
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Passed House
- Latest Action
- 2026-06-29: Motion to reconsider laid on the table Agreed to without objection.
- Last Updated
- 2026-07-01T08:06:38Z
AI-Generated Summary
Purpose The legislation aims to recover unclaimed pandemic-era unemployment compensation funds held by financial institutions or transferred to state unclaimed property administrators. It focuses on identifying and returning payments determined to be improper, particularly those linked to fraud, while establishing coordinated federal oversight.
Key Provisions
- Creates a National Recovery Coordinator under the Secretary of Labor, who forms the "Recover Pandemic Unemployment Funds in Banks Task Force" within 30 days, including representatives from the Department of Justice, Department of Labor, Treasury, FDIC, and Consumer Financial Protection Bureau.
- Directs the Task Force to work with states to locate federal pandemic unemployment payments on prepaid debit cards held by banks or state unclaimed property offices.
- Requires development of model recovery processes, including guidelines for states to review payments for impropriety, determine cost-effective recovery thresholds, and handle fraud cases under state law.
- Mandates guidance to financial institutions on returning improper payments and to state unclaimed property administrators on their obligations to return funds.
- Provides for federal reimbursement of state administrative costs tied to this coordination.
- Extends the statute of limitations to 10 years for criminal prosecutions or civil enforcement actions related to fraud in pandemic unemployment programs, applying to violations of specified federal statutes (such as wire fraud or false claims).
Significant Changes to Existing Law
- Amends sections of the CARES Act (2102, 2104, and 2107) to introduce a 10-year statute of limitations for pandemic unemployment fraud cases, replacing shorter standard time limits.
- The extension applies only to cases where the prior statute of limitations had not already expired before enactment.
Potential Impacts
- Government agencies: Increases coordination between federal and state entities, potentially recovering funds for the federal government while imposing new administrative processes on state unemployment and unclaimed property offices (with cost reimbursement).
- Citizens: May lead to reviews of past payments, with notices and resources offered to those whose identities were fraudulently used; could result in recovery actions against individuals who received improper benefits.
- Financial institutions: Requires compliance with new guidance for returning held funds, consistent with existing contracts and banking rules.
- No notable effects on international relations are outlined.
Main Stakeholders Affected
- Federal agencies (Departments of Labor, Treasury, and Justice; FDIC; Consumer Financial Protection Bureau).
- State unemployment compensation and unclaimed property administrators.
- Financial institutions holding prepaid debit card payments.
- Individuals who received pandemic unemployment payments or whose information was misused in fraud cases.
Notable Legal, Constitutional, or Political Implications
- The statute of limitations extension strengthens enforcement tools for fraud recovery but could raise questions about retroactive application in legal proceedings.
- Emphasizes state-law compliance for recovery actions, preserving federal-state divisions in unemployment programs.
- Focuses on cost-effective thresholds to balance recovery efforts with administrative feasibility.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Van Duyne, Beth [R-TX-24]
Cosponsors (2)
Rep. Suozzi, Thomas R. [D-NY-3], Rep. Feenstra, Randy [R-IA-4]
Recent Actions
- 2026-06-29: Motion to reconsider laid on the table Agreed to without objection.
- 2026-06-29: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4269-4270)
- 2026-06-29: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4269-4270)
- 2026-06-29: DEBATE - The House proceeded with forty minutes of debate on H.R. 8873.
- 2026-06-29: Considered under suspension of the rules. (consideration: CR H4269-4272)
- 2026-06-29: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- 2026-05-29: Placed on the Union Calendar, Calendar No. 585.
- 2026-05-29: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-671.
- 2026-05-29: Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-671.
- 2026-05-21: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 41 - 0.
- 2026-05-21: Committee Consideration and Mark-up Session Held
- 2026-05-19: Referred to the House Committee on Ways and Means.
- 2026-05-19: Introduced in House
- 2026-05-19: Introduced in House
Bill Versions
- Recover COVID Unemployment Fraud in Banks Act — issued 2026-06-29 — PDF (12 pages)
- Recover COVID Unemployment Fraud in Banks Act — issued 2026-05-19 — PDF (11 pages)
- Recover COVID Unemployment Fraud in Banks Act — issued 2026-05-29 — PDF (14 pages)