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US Department of Labor Awards $195.7 Million to Strengthen Fraud Detection in Unemployment Insurance Programs

The U.S. Department of Labor announced the recent awards of $195.7 million in grant funding to states and territories, and the District of Columbia to help them detect and combat fraud in their unemployment insurance programs.

“Amid the pandemic, temporary federal unemployment insurance programs sustained millions of Americans forced into unemployment through no fault of their own,” said Secretary of Labor Marty Walsh. “International and domestic crime rings were among those who attacked states’ antiquated claims systems to commit massive identity fraud at rates never seen before. These grants will enable states to procure, implement and maintain identity verification and fraud detection solutions to ensure the safety and integrity of states’ unemployment insurance systems, paving the way for better access for people with legitimate claims.”

On Aug. 11, 2021, the department’s Employment and Training Administration issued guidance to inform states of $100 million available in grants to address fraud in the Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation programs. At the same time, the department announced another $140 million in grants from the American Rescue Plan Act available to states to strengthen identity verification, enhance fraud detection, increase cybersecurity and expand overpayment recovery efforts for all unemployment insurance programs.

On Sept. 24 and Sept. 27, the department made an initial award of $77.8 million in grant funding, including $64.4 million to 44 states, territories and the district for PUA fraud prevention, and $12.4 million to 40 states, territories and the district for PEUC fraud prevention. On Sept. 28, the department announced nearly $118 million in ARPA funding to 45 states, territories and the district for all unemployment insurance programs.

The department issued guidance on Sept. 17, 2021, extending the deadline for states to apply for the funds available under these unemployment fraud detection, prevention and overpayment recovery grants.

States have until Oct. 31, 2021 to apply.

Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation grant recipients are as follows:

Recipient

PUA Amount

PEUC Amount

American Samoa

$100,000

N/A

Arizona

$2,133,900

$405,900

Arkansas

$1,384,200

$264,600

California

$2,133,900

$405,900

Colorado

$2,133,900

$405,900

Connecticut

$1,384,200

$264,600

Delaware

$1,020,600

$194,400

District of Columbia

$1,020,600

$194,400

Florida

$2,133,900

$405,900

Georgia

$2,133,900

$405,900

Guam

$210,000

N/A

Hawaii

$1,020,600

$194,400

Illinois

$2,133,900

$405,900

Indiana

$2,133,900

$405,900

Iowa

$1,384,200

$264,600

Kansas

$1,384,200

$264,600

Kentucky

$1,384,200

$264,600

Louisiana

$1,384,200

$264,600

Maine

$1,020,600

$194,400

Maryland

$2,133,900

$405,900

Massachusetts

$2,133,900

$405,900

Michigan

$2,133,900

$405,900

Micronesia

$100,000

N/A

Mississippi

$1,384,200

$264,600

Missouri

$2,133,900

$405,900

Montana

$1,020,600

$194,400

Nebraska

$1,020,600

$194,400

Nevada

$1,384,200

$264,600

New Jersey

$2,133,900

$405,900

New Mexico

$1,020,600

$194,400

New York

$2,133,900

$405,900

North Carolina

$2,133,900

$405,900

Northern Mariana Islands

$210,000

N/A

Ohio

$2,133,900

$405,900

Oklahoma

$1,384,200

$264,600

Puerto Rico

$1,020,600

$194,400

Rhode Island

$1,020,600

$194,400

South Carolina

$1,384,200

$264,600

South Dakota

$1,020,600

$194,400

Tennessee

$2,133,900

$405,900

Texas

$2,133,900

$405,900

Utah

$1,384,200

$264,600

Washington

$2,133,900

$405,900

Wyoming

$1,020,600

$194,400

Total

$65,483,000

$12,355,200

 

Recipients of additional funding for Unemployment Compensation Fraud Prevention Grants are as follows:

Recipient

Additional Funding for UC (All Programs)

Alabama

$2,456,000

Alaska

$1,228,000

Arizona

$3,684,000

Arkansas

$2,456,000

California

$4,914,000

Colorado

$3,684,000

Connecticut

$2,456,000

District of Columbia

$1,228,000

Florida

$4,914,000

Georgia

$3,684,000

Hawaii

$1,228,000

Idaho

$1,228,000

Indiana

$3,684,000

Iowa

$2,456,000

Kansas

$2,456,000

Kentucky

$2,456,000

Louisiana

$2,456,000

Maine

$1,228,000

Maryland

$3,684,000

Massachusetts

$3,684,000

Michigan

$3,684,000

Mississippi

$2,456,000

Missouri

$3,684,000

Montana

$1,228,000

Nebraska

$1,228,000

Nevada

$2,456,000

New Hampshire

$1,228,000

New Mexico

$1,228,000

New York

$4,914,000

North Carolina

$3,684,000

Ohio

$3,684,000

Oklahoma

$2,456,000

Oregon

$2,456,000

Pennsylvania

$3,684,000

Puerto Rico

$1,228,000

Rhode Island

$1,228,000

South Carolina

$2,456,000

South Dakota

$1,228,000

Tennessee

$3,684,000

Texas

$4,914,000

Utah

$2,456,000

Vermont

$1,228,000

Washington

$3,684,000

West Virginia

$1,228,000

Wyoming

$1,228,000

Total

$117,896,000