News Release

U.S. Department of Labor Provides $100 Million to States To Combat Unemployment Insurance Fraud

Fraud Prevention Strategies Outlined in New Guidance to States

WASHINGTON, DC The U.S. Department of Labor today announced $100 million in funding to support state efforts to combat fraud and recover improper payments in the Unemployment Insurance (UI) program, including those programs created under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

At the same time, the Department’s Employment and Training Administration (ETA) issued UI Program Letter (UIPL) 28-20, which highlights tools and strategies to assist states in strengthening their anti-fraud operations, including the availability of a new identity verification solution to confirm the identity of individuals filing for unemployment benefits.

The coronavirus has led to an unprecedented increase among state workforce agencies in the number of individuals filing claims to receive benefits in the regular UI program as well as the CARES Act UI programs, specifically the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs. As states work diligently to provide these important benefits to eligible individuals, they also face significant challenges due to increased fraudulent activity and identity theft amid new and emerging fraud schemes.

States are permitted to use this targeted funding for staff or contract services to conduct fraud investigations and other fraud detection-related activities, and to implement tools to increase prevention, detection and recovery of fraudulent improper payments in the PUA and PEUC programs.

“The Department of Labor has made preventing fraud and abuse of the unemployment insurance system a top priority,” said Secretary of Labor Eugene Scalia. “State workforce agencies are on the front lines in the fight against fraud and abuse, and the funding and resources provided by the Department today will help States protect the integrity of their unemployment insurance programs.”

The Department encourages state agencies to adopt new fraud prevention and detection strategies, and utilize Unemployment Insurance Integrity Center resources to enhance current fraud prevention operations. The Center’s Integrity Data Hub is a secure data cross-matching system, containing an array of effective fraud prevention and detection tools. The Hub’s new identity verification solution is now fully operational and available to all states. 

“The Department of Labor is encouraged by the reports from states on the very positive results with the identity verification solution,” said Assistant Secretary for Employment and Training John Pallasch. “The Department remains focused on ensuring states have access to effective tools and strategies to combat fraud and identity theft, protect taxpayer dollars, and provide benefits to those who are eligible.”

The Department encourages states to use these funds to enhance their PUA and PEUC fraud prevention efforts and to work with the Employment and Training Administration and the Unemployment Insurance Integrity Center to use these resources to address fraud aggressively in these programs.

State

PUA

PEUC

Alabama

$1,499,400

$285,600

Alaska

$1,020,600

$194,400

Arizona

$2,041,200

$388,800

Arkansas

$1,499,400

$285,600

California

$2,041,200

$388,800

Colorado

$2,041,200

$388,800

Connecticut

$1,499,400

$285,600

Delaware

$1,020,600

$194,400

District of Columbia

$1,020,600

$194,400

Florida

$2,041,200

$388,800

Georgia

$2,041,200

$388,800

Hawaii

$1,020,600

$194,400

Idaho

$1,020,600

$194,400

Illinois

$2,041,200

$388,800

Indiana

$2,041,200

$388,800

Iowa

$1,499,400

$285,600

Kansas

$1,499,400

$285,600

Kentucky

$1,499,400

$285,600

Louisiana

$1,499,400

$285,600

Maine

$1,020,600

$194,400

Maryland

$2,041,200

$388,800

Massachusetts

$2,041,200

$388,800

Michigan

$2,041,200

$388,800

Minnesota

$2,041,200

$388,800

Mississippi

$1,499,400

$285,600

Missouri

$2,041,200

$388,800

Montana

$1,020,600

$194,400

Nebraska

$1,020,600

$194,400

Nevada

$1,499,400

$285,600

New Hampshire

$1,020,600

$194,400

New Jersey

$2,041,200

$388,800

New Mexico

$1,020,600

$194,400

New York

$2,041,200

$388,800

North Carolina

$2,041,200

$388,800

North Dakota

$1,020,600

$194,400

Ohio

$2,041,200

$388,800

Oklahoma

$1,499,400

$285,600

Oregon

$1,499,400

$285,600

Pennsylvania

$2,041,200

$388,800

Puerto Rico

$1,020,600

$194,400

Rhode Island

$1,020,600

$194,400

South Carolina

$2,041,200

$388,800

South Dakota

$1,020,600

$194,400

Tennessee

$2,041,200

$388,800

Texas

$2,041,200

$388,800

Utah

$1,499,400

$285,600

Vermont

$1,020,600

$194,400

Virgin Islands

$1,020,600

$194,400

Virginia

$2,041,200

$388,800

Washington

$2,041,200

$388,800

West Virginia

$1,020,600

$194,400

Wisconsin

$2,041,200

$388,800

Wyoming

$1,020,600

$194,400

American Samoa

$100,000

N/A

Northern Mariana Islands

$210,000

N/A

Federated States of Micronesia

$100,000

N/A

Guam

$210,000

N/A

Palau

$100,000

N/A

Republic of Marshall Islands

$100,000

N/A

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Employment and Training Administration
Date
September 1, 2020
Release Number
20-1601-NAT
Contact: Megan Sweeney
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