Yakym Highlights Fraudulent Pandemic Funds

WASHINGTON, D.C.  –  Today, Congressman Rudy Yakym (IN-02) participated in a Ways and Means Work and Welfare subcommittee hearing focused on reclaiming billions of forgotten fraudulent pandemic unemployment insurance (UI) funds issued under the Biden administration.

“The Government Accountability Office (GAO) estimates that 135 billion dollars went missing during the pandemic and yet we have only recovered a mere fraction with nearly 1 billion dollars held in bank accounts,” Rep. Yakym said. “This is real money stolen from hardworking Hoosiers. While Democrats want to ignore this blatant abuse of tax dollars, I’m committed to holding these criminals accountable, working to recoup these funds, and eliminating this kind of egregious waste, fraud, and abuse.”

Rep. Yakym during the Ways and Means Work and Welfare hearing.

Background:

The Government Accountability Office (GAO) has estimated as much as $100-$135 billion in UI benefits were lost to fraud during the pandemic. Less than 4% of funds have been recovered.

UI benefits are typically administered through direct deposit, issued on state pre-paid debit cards, or via paper check. In instances where the benefits are loaded onto a pre-paid card, these debit cards are managed by financial institutions.

Some of these fraudulent funds were issued on prepaid debit cards and are still being held in bank accounts. It’s estimated that there are about $1 billion in fraudulent UI still in banks.

Last fall the Department of Labor Office of the Inspector General issued a report outlining how policies and guidance issued by the Biden Administration allowed states to issue blanket waivers and not investigate possible fraud.

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