What does Preamble of Stop Unemployment Fraud Act do?

This bill aims to amend the Social Security Act and the Federal Unemployment Tax Act The amendments require identity verification procedures and data matching The purpose is to prevent unemployment fraud and strengthen work search requirements

What does SHORT TITLE. of Stop Unemployment Fraud Act do?

This bill is formally titled the Stop Unemployment Fraud Act.

What does VERIFICATION OF APPLICANT IDENTITY. of Stop Unemployment Fraud Act do?

This section amends the Social Security Act to require states to verify the identity of unemployment compensation claimants. States must have procedures in place to verify claimant identity, including requiring at least one valid government-issued ID and supporting documents. The Secretary of Labor must promulgate regulations governing identity verification procedures within 12 months of enactment.

What does PREVENTING UNEMPLOYMENT COMPENSATION FRAUD THROUGH DATA of Stop Unemployment Fraud Act do?

This section amends Section 3304 of the Internal Revenue Code of 1986. It establishes a condition for states to implement exceptions to the withdrawal standard related to unemployment compensation. States must certify they use a system for cross-matching unemployment compensation claimants to prevent and detect fraud. States are required to use the National Directory of New Hires to compare claimant information and verify employment status. States must use the State Information Data Exchange System to facilitate employer responses. States must request information regarding incarcerated individuals to determine unemployment compensation eligibility. States must compare claimant information against data on deceased individuals.

What does STOPPING THE PAY AND CHASE MODEL; PROHIBITION ON SELF- of Stop Unemployment Fraud Act do?

This section amends Section 303 of the Social Security Act to clarify when unemployment compensation payments are due. Payments are now due on the date an individual establishes eligibility, files a weekly claim, and meets weekly eligibility requirements, including those under state law. The Secretary of Labor must promulgate a regulation within 180 days of the Stop Unemployment Fraud Act's enactment, establishing maximum timeframes for benefit payments. Self-attestation or self-certification by a claimant will no longer be sufficient to prove eligibility for unemployment compensation. The amendments apply to certifications for payment made after two years from the date of enactment of this Act.

What does SECRETARIAL MONITORING. of Stop Unemployment Fraud Act do?

This section amends Section 303 of the Social Security Act. The Secretary of Labor is required to monitor each State's compliance with subsection (r). If a State is found to be non-compliant with subsections (n) or (o), the Secretary may withhold up to 5 percent of funds. The Secretary may also implement a corrective action plan to bring the State into compliance.

What does STRENGTHENING WORK SEARCH REQUIREMENTS. of Stop Unemployment Fraud Act do?

This section amends Section 303 of the Social Security Act to modify work search requirements for unemployment compensation. To be considered actively seeking work, claimants must be registered with the state agency, maintain a record of work search activities, and provide this record to the state agency weekly. States are required to verify the work search records submitted by claimants. The Secretary is directed to issue guidance within six months of the Stop Unemployment Fraud Act’s enactment regarding employment service registration and work search record verification. The amendments will apply to claimants receiving regular unemployment compensation beginning two years after the enactment of this Act.

What does PERMISSIBLE USES OF UNEMPLOYMENT FUND FOR PROGRAM of Stop Unemployment Fraud Act do?

This section amends several provisions of the Internal Revenue Code of 1986 and the Social Security Act related to unemployment funds. It allows states to deposit up to 5 percent of recovered overpayments of compensation into a state fund for purposes such as deterring improper payments, classifying employment status, modernizing technology, or improving unemployment compensation administration. It also permits states to deposit up to 5 percent of collected payments resulting from investigations and assessments into a similar state fund, provided certain certifications are in effect. The section modifies requirements for the immediate deposit of money into the Unemployment Trust Fund, creating exceptions for refunds and deposits into state funds. When administering federal programs providing compensation, states must use the authority provided under these provisions in the same manner as with state unemployment compensation law. These amendments apply to overpayments or payments collected after a two-year period beginning on the date of enactment.

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Stop Unemployment Fraud Act

Last updated: 3/5/2026 · Introduced: 3/5/2026

Author: Lloyd Smucker (R-PA)

TL;DR (AI)

This bill mandates states to verify unemployment compensation claimants' identities using government-issued IDs and supporting documents, preventing fraudulent claims.
States must implement data-matching systems using resources like the National Directory of New Hires and the State Information Data Exchange System to detect and prevent unemployment fraud, including verifying incarcerated and deceased individual status.
To receive unemployment compensation, claimants will be required to register with state agencies, maintain records of work search activities, and have these records verified by the state, with states now able to withhold funds for non-compliance.

119th Congressin committeeS. 4016(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 6 more.

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