Bill · S. 4016· Senate(119-S-4016)
Stop Unemployment Fraud Act
- Introduced
- 3/5/2026
- Last activity
- 3/5/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- James Lankford
- Cosponsors
- - 4 - 0
- Introduced
- In Committee
What this bill would do
The Stop Unemployment Fraud Act aims to amend the Social Security Act and the Federal Unemployment Tax Act to prevent unemployment fraud. It requires State agencies to implement identity verification procedures using government-issued ID and supporting documents. The bill mandates data matching practices, such as checking against new hire directories and records of deceased individuals, to detect improper payments. It also strengthens work search requirements by requiring claimants to maintain and provide records of their job searches. Additionally, the act establishes rules for when benefit payments are due and how States can use recovered funds for program administration.
Yes· 3 of 4
Does this reduce what the federal government spends?+3
The act aims to reduce government spending by preventing unemployment fraud through data matching and stricter eligibility rules.
Does this get reliable internet to more people?+1
The bill allows states to use recovered overpayments to modernize their unemployment insurance technology infrastructure.
Does this make what the government does easier for the public to see?+1
The bill establishes more rigorous, standardized data-matching and verification protocols for state agencies.
The opposite· 3 of 7
Would households on low incomes be better off under this?-4
The bill imposes new documentation and record-keeping burdens that can be difficult for low-income populations to meet.
Would people in their twenties and thirties be better off under this?-2
The increased burden of maintaining weekly work search records may disproportionately affect younger workers with less stable documentation.
Would middle-income households be better off under this?-1
The increased administrative burdens for job searching may create friction for middle-income workers facing unemployment.
Who it would affect, and how
Potential Positive Impacts for People
-
Prevention of Fraud: The bill implements data matching against the National Directory of New Hires, records of incarcerated individuals, and information regarding deceased individuals to prevent and detect fraud and improper payments (Section 3).
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Due Process and Fair Treatment: Regulations regarding identity verification must provide due process protections for claimants and include safeguards to ensure that procedures do not result in flagging, denial, or delay based on personal characteristics like race, religion, sex, or disability (Section 2).
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Protection Against Systematic Errors: The Secretary of Labor is tasked with creating regulations to ensure that required documentation does not produce systematic mismatches that unfairly deny or delay unemployment compensation payments (Section 2).
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Modernization of Infrastructure: States are permitted to use a portion of recovered overpayments to modernize their unemployment insurance technology infrastructure (Section 7).
Potential Negative Impacts for People
-
Increased Verification Burdens: Claimants will be required to provide at least one currently valid Federal or State government-issued identification document plus one or more supporting documents, such as utility bills or lease agreements, to verify their identity (Section 2).
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Strict Work Search Requirements: To be considered actively seeking work, claimants must register for employment services and maintain a specific record of employers contacted, including the method and date of contact, which must be provided to the State agency weekly (Section 6).
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Delays in Payment: The bill stipulates that payments shall not be made prior to the determination of eligibility, which includes the successful completion of the required identity verification (Section 4).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households-4Good For Young Adults-2Good For African Americans-1Good For Middle Class Households-1Good For Union Workers-1
- Economy And Finance
- Reduces Government Spending+3Increases Job Creation-1
- Education And Technology
- Improves Internet Access+1
- Governance And Ideology
- Improves Government Transparency+1
- Social Issues And Justice
- Improves Disability Rights+1Improves Criminal Sentencing Reform-1
- 8/4/2026
- 1 Cosponsor added.
- 3/5/2026
- Read twice and referred to the Committee on Finance.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mike CrapoRepublican · Idaho
Bill CassidyRepublican · Louisiana
Steve DainesRepublican · Montana
David McCormickRepublican · Pennsylvania