Stop Unemployment Fraud Act

The Stop Unemployment Fraud Act aims to overhaul the administration of unemployment insurance by requiring states to implement more rigorous identity verification and data-matching procedures. Under this proposal, states would be required to verify a claimant's identity and eligibility before any benefits are paid out, moving away from the current "pay and chase" model where funds are often distributed first and checked later. To support these efforts, the bill would allow states to keep a portion of any recovered fraudulent overpayments to reinvest in their own technology and fraud prevention systems.

Additionally, the legislation proposes to strengthen work-search requirements for those receiving benefits. Claimants would be required to register for state employment services and maintain detailed weekly records of their job-seeking activities, such as specific employer contacts and methods used. The bill also seeks to improve coordination between states and the federal government by mandating the use of fraud detection systems to prevent individuals from receiving duplicate payments across different state lines.