OKC Standard

Senator James Lankford of Oklahoma and Representative Lloyd Smucker from Pennsylvania have called on the Trump Administration to address issues within the unemployment insurance (UI) system. They are joined by House Budget Committee Chairman Jodey Arrington and Representative Aaron Bean in a letter advocating for reforms aimed at enhancing accountability, reducing fraud, and ensuring timely support for job seekers.

The lawmakers urge a collaboration between Congress and the Trump Administration to reverse what they describe as damage caused by previous policies. "The damage caused by the prior administration" is cited as a reason for encouraging states to build robust UI systems that verify identities efficiently.

The letter outlines specific actions, including ending the 'pay and chase' model, reevaluating federal funding formulas for state UI administration, and increasing transparency regarding nearly $1 billion in UI modernization grants under the Biden Administration. The Government Accountability Office estimates that fraud in these programs ranges from $100 billion to $135 billion.

They also highlight an urgent need for congressional action to extend the statute of limitations for recovering fraudulent pandemic UI payments. "Absent immediate action, the statute of limitations... starts to expire on March 27, 2025," they warn.

Concerns about improper payment rates persist, with fiscal year 2023 seeing an improper payment rate of 32 percent of outlays totaling $48 billion. The letter criticizes former Acting Secretary Julie Su's management approach in California and calls for new guidance that helps states identify fraud schemes without overbearing regulations.

Furthermore, there is criticism of how administrative funding is allocated through DOL's Resource Justification Model. Lawmakers argue this model discourages efficiency and suggest it should be reformed alongside improved data metrics.

Finally, Congress is urged to play its part in reforming the UI system by extending legislative measures aimed at prosecuting fraudulent distributions from pandemic programs. "Moving forward," they state, "we must work in tandem to identify and enact reforms that ensure accurate administration."

The letter concludes with a call for reshaping the UI system prioritizing integrity, fiscal responsibility, and efficient workforce reentry.