Neal Applauds Department of Labor for Disbursing American Rescue Plan Funding to States to Fight Fraud and Modernize Unemployment Insurance Systems

Press Release

Today, House Ways and Means Chairman Richard E. Neal (D-MA) applauded the Department of Labor (DOL) for their swift action disbursing funding to states to modernize unemployment insurance systems, ensure that workers receive their earned benefits, and prevent fraud. In the American Rescue Plan, the Committee allocated $2 billion to DOL to disburse to states to address the longstanding challenges in unemployment insurance systems that have been exacerbated by the pandemic.

"Over a year ago when we were facing down the uncertainty of this pandemic, the Ways and Means Committee acted boldly and decisively to supplement state unemployment benefits and give millions of Americans a safety net that we now know kept them afloat and saved our economy from further destruction. Unfortunately, under the last administration's watch, many workers had to wait far too long for their benefits or were locked out completely, and fraudsters took advantage of vulnerabilities within the temporary benefits. The Ways and Means Committee responded in the American Rescue Plan by allocating significant funding to address these issues and I'm grateful to our Members for working closely with the Biden Administration to make sure the funds are well-used. I applaud the Biden Administration for taking action to reform this system in a way that not only cracks down on fraud but also prioritizes equity and access, and makes much-needed technical updates to chronically underfunded systems."

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