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119th Congress
Independent · Nonpartisan · Reader-supported
HOUSEH.R. 8873· 119th Congress

Feds Get 10 Years to Pursue COVID Jobless Fraud

Recover COVID Unemployment Fraud in Banks Act

Sponsor
Beth Van Duyne (R-TX)
Introduced
May 19, 2026
Last Action
Jun 29, 2026
Passage
72%
Introduced
May 19, 2026
Committee
Floor Vote
Jun 29, 2026
4
Both Chambers
5
Enacted
01 — The Text

What.

  • Extends deadline for prosecuting pandemic unemployment fraud from 5 to 10 years for criminal cases, 6 to 10 years for civil claims.
  • Applies to four COVID-era jobless programs: Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earners, and Pandemic Emergency Unemployment Compensation.
  • Creates federal task force to find fraudulent payments sitting in banks and state unclaimed property accounts, then develop recovery strategies.
  • Task force coordinates with states, banks, and federal agencies to return misused funds cost-effectively.
02 — The Stakes

So what?

  • Government gains more time to catch and prosecute people who illegally claimed pandemic jobless benefits—a widespread problem that cost billions.
  • Banks and state agencies must cooperate in identifying and returning trapped fraud money, shifting some compliance burden to financial sector.
  • Does not apply retroactively: cases where the old statute of limitations already expired cannot be reopened.
  • Affects people who fraudulently received benefits years ago and institutions holding those unclaimed funds.
03 — The Path

Now what?

  • House passed the bill on June 29, 2026 by voice vote. Next step: Senate consideration.
  • Passage is likely but not certain—bipartisan support in House suggests Senate path exists, but no guaranteed timeline.
  • Track Senate action at Congress.gov or contact your senator to express support or opposition.
Legislative History

Actions.

  • Jun 29, 2026Motion to reconsider laid on the table Agreed to without objection.
  • Jun 29, 2026On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4269-4270)
  • Jun 29, 2026Passed/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)
  • Jun 29, 2026DEBATE - The House proceeded with forty minutes of debate on H.R. 8873.
  • Jun 29, 2026Considered under suspension of the rules. (consideration: CR H4269-4272)
  • Jun 29, 2026Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
  • May 29, 2026Placed on the Union Calendar, Calendar No. 585.
  • May 29, 2026Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-671.