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
- 2026-07-13: Received in the Senate and Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-23T23:06:19Z
AI-Generated Summary
Purpose
The legislation aims to recover unclaimed funds from federal pandemic unemployment programs that are held by financial institutions or have been transferred to state unclaimed property administrators. It also extends the time period for pursuing legal actions related to fraud in these programs.
Key Provisions
- National Recovery Coordinator and Task Force: The Secretary of Labor designates a National Recovery Coordinator, who convenes a task force including representatives from the Department of Justice, Department of Labor, Department of the Treasury, Federal Deposit Insurance Corporation, and Consumer Financial Protection Bureau. The task force must identify unclaimed payments on prepaid debit cards, develop model recovery processes, and issue guidance to states, banks, and unclaimed property administrators.
- Guidance and Processes: The task force provides guidelines for states to review payments for improper use (meaning payments to which recipients are not entitled), determine cost-effective recovery thresholds, handle fraud cases under state law, notify affected individuals about identity theft resources, and return recovered funds to the federal government. It also offers legal pathways for banks and states to return funds.
- State Reimbursement: The federal government covers all administrative costs states incur from participating in the recovery efforts.
- Statute of Limitations Extension: For pandemic unemployment assistance, federal pandemic unemployment compensation, mixed earner unemployment compensation, and pandemic emergency unemployment compensation, the time limit for criminal prosecutions or civil actions related to specific fraud-related violations (such as conspiracy, theft, or false claims) is extended to 10 years from the date of the violation. This does not apply if the original limit had already expired before the law's enactment.
Significant Changes to Existing Law
- Creates a new federal coordination structure for identifying and recovering pandemic unemployment funds, which did not previously exist in this form.
- Extends the statute of limitations for certain fraud offenses tied to these specific unemployment programs from standard federal periods (often 5 years) to 10 years, with a carve-out for cases already time-barred.
Potential Impacts
- Government Agencies: Increases coordination among federal and state entities, with states receiving full reimbursement for added administrative work; federal agencies gain new oversight roles in fund recovery.
- Citizens: May lead to recovery of improper payments from banks or states, while providing notices and resources for those whose identities were misused; individuals involved in fraud face longer periods for potential legal actions.
- International Relations: No direct effects identified.
Main Stakeholders Affected
- Federal agencies (Department of Labor, Treasury, Justice, and others on the task force).
- State unemployment and unclaimed property agencies.
- Financial institutions holding prepaid debit cards with unclaimed funds.
- Individuals who received or were affected by improper pandemic unemployment payments.
Notable Legal, Constitutional, or Political Implications
- The statute of limitations extension applies retroactively to ongoing cases but respects prior expirations, potentially broadening enforcement options without violating existing time bars.
- Recovery actions must comply with state laws and banking regulations, emphasizing federal-state coordination.
- No major constitutional issues are outlined in the text, though the extension of prosecution timelines raises standard considerations around fairness in legal proceedings.
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
- 2026-07-13: Received in the Senate and Read twice and referred to the Committee on Finance.
- 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 2026-07-13 — PDF (11 pages)
- Recover COVID Unemployment Fraud in Banks Act — issued 2026-05-29 — PDF (14 pages)