H.R. 8873

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8873 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 8873

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

July 13, 2026

Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

AN ACT

To recover unclaimed pandemic-era unemployment compensation funds held 
by financial institutions or escheated to State unclaimed property 
administrators, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Recover COVID Unemployment Fraud in 
Banks Act''.

SEC. 2. NATIONAL RECOVERY COORDINATOR AND TASK FORCE.

(a) In General.--
(1) Designation of national recovery coordinator.--The 
Secretary of Labor, in consultation with the Secretary of the 
Treasury, the Inspector General of the Department of Labor, and 
the Attorney General, shall designate an official to serve as 
National Recovery Coordinator to oversee and coordinate the 
activities and responsibilities of the task force described in 
paragraph (2).
(2) Task force establishment.--Not later than 30 days after 
the date of enactment of this Act, the National Recovery 
Coordinator shall convene a task force to be named the 
``Recover Pandemic Unemployment Funds in Banks Task Force'' (in 
this section, the ``Task Force'').
(3) Members.--The Task Force shall include--
(A) the Attorney General, or their designee;
(B) the Secretary of Labor, or their designee;
(C) the Inspector General of the Department of 
Labor, or their designee;
(D) the Secretary of the Treasury, or their 
designee;
(E) the Chairman of the Federal Deposit Insurance 
Corporation, or their designee; and
(F) the Director of the Consumer Financial 
Protection Bureau, or their designee.
(b) Task Force Responsibilities.--It shall be the responsibility of 
the Task Force to--
(1) coordinate with applicable State agencies to identify 
Federal pandemic unemployment compensation payments issued on 
prepaid debit cards that--
(A) are held by financial institutions, and other 
entities identified by the Inspector General of the 
Department of Labor, contracted by a State agency to 
transfer such payments to unemployment claimants; or
(B) were transferred by such an entity to, and are 
currently held by, a State agency responsible for 
unclaimed property;
(2) coordinate with appropriate Federal agencies to develop 
model processes which comply with relevant Federal and State 
laws and result in cost-effective recovery of the payments 
identified under paragraph (1), including issuing guidance, in 
coordination with the Secretary of Labor, to administrators of 
State agencies responsible for administering Federal 
unemployment compensation payments or determining fraud in such 
programs, including--
(A) guidelines for--
(i) reviewing such payments and determining 
if such a payment was an improper payment;
(ii) determining whether cost-effective 
recovery of an improper payment is possible, 
including a threshold, or a methodology for 
calculating a dollar threshold, for cost-
effective recovery; and
(iii) actions, consistent with State law, 
to be taken by the State agency if an improper 
payment is determined to be the result of 
fraud;
(B) assurances that, subject to section 303(g) of 
the Social Security Act (42 U.S.C. 503(g)), any action 
taken in relation to a determination that a payment 
identified under paragraph (1) is an improper payment 
shall be taken under State law;
(C) a model notice and information, developed in 
coordination with the Consumer Financial Protection 
Bureau, about resources available to individuals whose 
identity information is determined to have been 
fraudulently used to obtain Federal pandemic 
unemployment compensation;
(D) information on the legal pathways described 
under paragraphs (3) and (4) for recovery of payments 
that are improper payments held by financial 
institutions and agencies described in paragraph (1); 
and
(E) procedural requirements for State agencies to 
follow when funds are returned by such institutions 
that provides a standardized methodology to return 
funds to the Federal Government;
(3) issue guidance, in coordination with the Comptroller of 
the Currency and Chairman of the Federal Deposit Insurance 
Corporation, to financial institutions described in paragraph 
(1) that are holding payments that are improper payments that 
provides information on a legal pathway, consistent with 
banking regulations and applicable contracts with State 
agencies, for returning such payments to the appropriate State 
agency; and
(4) issue guidance, in coordination with the Secretary of 
Treasury, to administrators of State agencies responsible for 
unclaimed property on the obligations of such agencies to 
review and return payments described in paragraph (1)(B) to the 
appropriate State agency.
(c) Consultation Requirement.--In developing the guidance required 
to be issued under paragraphs (2), (3), and (4) of subsection (b), the 
Task Force shall consult with State agencies and incorporate best 
practices from previous attempts by any such States to recover payments 
determined to be improper payments from institutions described in 
paragraph (1)(A) of such subsection.
(d) State Administrative Costs.--The Secretary of Labor shall 
reimburse States for all administrative costs incurred as a result of 
coordination with the Task Force by reason of an agreement under 
section 2102, 2104, or 2107 of the CARES Act (15 U.S.C. 9201; 9203; 
9205).
(e) Definitions.--Except as otherwise specified, in this section:
(1) Federal pandemic unemployment compensation.--The term 
``Federal pandemic unemployment compensation'' means a payment 
of--
(A) pandemic unemployment assistance under section 
2102(b) of the CARES Act (15 U.S.C. 9021(b));
(B) Federal Pandemic Unemployment Compensation and 
Mixed Earner Unemployment Compensation under section 
2104(b)(1) of the CARES Act (15 U.S.C. 9023(b)(1)); and
(C) pandemic emergency unemployment compensation 
under section 2107(a)(2) of the CARES Act (15 U.S.C. 
9025(a)(2)).
(2) Improper payment.--The term ``improper payment'' means 
any amount of a pandemic unemployment payment to which the 
individual is not entitled.
(3) State; state agency; state law.--The terms ``State'', 
``State agency'', and ``State law'' have the meanings given 
those terms in section 205 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 3. EXTENSION OF THE STATUTE OF LIMITATIONS FOR PANDEMIC 
UNEMPLOYMENT FRAUD BY INDIVIDUALS UNDER CERTAIN 
UNEMPLOYMENT PROGRAMS.

(a) Pandemic Unemployment Assistance.--Section 2102 of the CARES 
Act (15 U.S.C. 9021) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new 
subsection:
``(h) Statute of Limitations.--
``(1) In general.--Notwithstanding any other provision of 
law and subject to paragraph (2), any criminal prosecution or 
civil enforcement action for a violation of, or conspiracy to 
violate, section 371, 641, 1028A, 1029, 1341, 1343, 1344, 1349, 
1956, or 1957 of title 18, United States Code, or section 3729 
or 3802 of title 31, United States Code, with respect to any 
unemployment compensation claim funded in whole or in part by 
pandemic unemployment assistance under this section shall be 
brought not later than 10 years after the date of the violation 
or conspiracy.
``(2) Exception.--Paragraph (1) shall not apply with 
respect to a criminal prosecution or civil enforcement action 
if the statute of limitations applicable to such criminal 
prosecution or civil enforcement action expired prior to the 
date of enactment of the Recover COVID Unemployment Fraud in 
Banks Act.''.
(b) Federal Pandemic Unemployment Compensation and Mixed Earner 
Unemployment Compensation.--Section 2104(f) of the CARES Act (15 U.S.C. 
9023(f)) is amended by adding at the end the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other 
provision of law and subject to subparagraph (B), any 
criminal prosecution or civil enforcement action for a 
violation of, or conspiracy to violate, section 371, 
641, 1028A, 1029, 1341, 1343, 1344, 1349, 1956, or 1957 
of title 18, United States Code, or section 3729 or 
3802 of title 31, United States Code, with respect to 
any unemployment compensation claim funded in whole or 
in part by Federal Pandemic Unemployment Compensation 
or Mixed Earner Unemployment Compensation under this 
section shall be brought not later than 10 years after 
the date of the violation or conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply 
with respect to a criminal prosecution or civil 
enforcement action if the statute of limitations 
applicable to such criminal prosecution or civil 
enforcement action expired prior to the date of 
enactment of the Recover COVID Unemployment Fraud in 
Banks Act.''.
(c) Pandemic Emergency Unemployment Compensation.--Section 2107(e) 
of the CARES Act (15 U.S.C. 9025(e)) is amended by adding at the end 
the following new paragraph:
``(5) Statute of limitations.--
``(A) In general.--Notwithstanding any other 
provision of law and subject to subparagraph (B), any 
criminal prosecution or civil enforcement action for a 
violation of, or conspiracy to violate, section 371, 
641, 1028A, 1029, 1341, 1343, 1344, 1349, 1956, or 1957 
of title 18, United States Code, or section 3729 or 
3802 of title 31, United States Code, with respect to 
any unemployment compensation claim funded in whole or 
in part by Pandemic Emergency Unemployment Compensation 
under this section shall be brought not later than 10 
years after the date of the violation or conspiracy.
``(B) Exception.--Subparagraph (A) shall not apply 
with respect to a criminal prosecution or civil 
enforcement action if the statute of limitations 
applicable to such criminal prosecution or civil 
enforcement action expired prior to the date of 
enactment of the Recover COVID Unemployment Fraud in 
Banks Act.''.
(d) Effective Date.--The amendments made by section Act shall take 
effect on the date of enactment of this Act.

Passed the House of Representatives June 29, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.