HR-8873 — Recover COVID Unemployment Fraud in Banks Act

YourVoice.Now SummaryCriminal Justice & Due Process

During the COVID-19 pandemic, the federal government distributed billions in unemployment aid through programs like Pandemic Unemployment Assistance, but large amounts were obtained through fraud or remain unclaimed on prepaid debit cards held by banks and state unclaimed-property agencies. This bill creates a National Recovery Coordinator and a multi-agency task force — including the Departments of Labor and Treasury, the FDIC, and the Consumer Financial Protection Bureau — to coordinate identification and return of those funds. It also extends the statute of limitations for criminal prosecution and civil enforcement actions related to COVID unemployment fraud to 10 years from the date of the violation, giving prosecutors more time to pursue older cases. States that participate in the recovery effort will be reimbursed by the federal government for their administrative costs.

Criminal Justice & Due Process

Criminal prosecution window — Extended to 10 years after violation for COVID pandemic unemployment fraud cases
Civil enforcement window — Extended to 10 years after violation for COVID pandemic unemployment fraud cases

Congressional Summary

Recover COVID Unemployment Fraud in Banks ActThis bill extends to 10 years the statute of limitations for federal criminal charges or civil enforcement actions for fraud related to several unemployment insurance programs that were established during the COVID-19 pandemic. The bill also establishes a task force to locate fraudulent payments and develop strategies to recover such payments.The extension applies to Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earners Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. The bill extends the statute of limitations for (1) criminal charges related to fraud, including aggravated identity theft, wire fraud, and conspiracy to commit fraud (currently subject to a 5-year statute of limitations); and (2) civil actions involving false claims (currently subject to a 6-year statute of limitations). However, the bill does not apply to a criminal prosecution or civil enforcement action if the applicable statute of limitations expired before the date of the bill's enactment.The task force established by this bill mustcoordinate with state agencies to identify federal pandemic unemployment compensation payments held by financial institutions and other entities or held by state agencies responsible for unclaimed property, coordinate with federal agencies to develop model processes that result in the cost-effective recovery of such payments,issue guidance to financial institutions on legal pathways for returning such payments, andissue guidance to state unclaimed property agencies on their obligation to review and return such payments.

Legislative Subjects

Advisory bodiesCardiovascular and respiratory healthEmergency medical services and trauma careFraud offenses and financial crimesGovernment studies and investigationsInfectious and parasitic diseasesIntergovernmental relationsState and local financeState and local government operationsUnemployment

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Reported to House
Action Date: 2026-05-29
Date Added: 2026-06-25
Source: Congress.gov →

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