What does Preamble of Stop Unemployment Fraud Act do?

This bill, formally titled 'A BILL To amend title III of the Social Security Act and the Federal Unemployment Tax Act to require identity verification procedures and data matching, to prevent unemployment fraud, and to strengthen work search requirements, and for other purposes,' aims to amend the Social Security Act and the Federal Unemployment Tax Act. The bill intends to require identity verification procedures and data matching. It seeks to prevent unemployment fraud. The bill also aims to 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 Section 303 of the Social Security Act to require State agencies to certify that they have procedures in place to verify the identity of unemployment compensation claimants. These verification procedures must include requiring claimants to provide at least one valid government-issued identification document and one or more supporting documents. Supporting documents may include utility bills, lease agreements, or voter registration cards, as determined sufficient by the State or approved by the Secretary. The Secretary of Labor must promulgate regulations within 12 months of enactment governing these identity verification procedures. The regulations must consider administrative costs, provide due process protections, and ensure accuracy and reliability of documentation. The regulations must also minimize false positive/negative rates and prevent discrimination based on personal characteristics. The procedures must comply with privacy and cybersecurity best practices as determined by the Secretary of Labor. The amendments apply to initial applications for unemployment compensation received by a State two years after the date of enactment of this Act.

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 must use the National Directory of New Hires to compare information and take action regarding employed individuals. 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 information against data regarding 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 due when 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 not 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 regarding work search requirements for unemployment compensation. It adds subsection (r) which defines 'actively seeking work' as requiring registration with a State agency, maintaining a work search record, and providing that record to the 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 on employment service registration and work search record verification standards. The amendments apply to claimants receiving regular unemployment compensation beginning two years after the date of enactment of this Act.

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

This section amends sections of the Internal Revenue Code of 1986 and the Social Security Act related to the use of unemployment funds. It allows states to deposit up to 5 percent of recovered overpayments or collected contributions into a state fund for specific purposes, including deterring improper payments, classifying employment status, modernizing technology, and improving administration. The use of these funds is contingent on the state maintaining certain certifications described in sections 3304(f) of the Internal Revenue Code and section 4 of the Stop Unemployment Fraud Act. The section modifies requirements for the immediate deposit of money into the Unemployment Trust Fund, creating exceptions for refunds and amounts deposited in state funds. When administering federal compensation programs, states are directed to use the same authority regarding fund allocation as they do for their state unemployment compensation law. The amendments apply to overpayments and contributions collected after a two-year period beginning on the date of enactment.

Back to bills

Stop Unemployment Fraud Act

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

Author: James Lankford (R-OK)

TL;DR (AI)

This bill requires state unemployment agencies to verify the identity of claimants using government-issued identification and supporting documents.
States must implement data-matching systems, including using the National Directory of New Hires and the State Information Data Exchange System, to prevent unemployment fraud and cross-reference claimant information with employment, incarceration, and death records.
The bill clarifies that unemployment compensation payments are due only after an individual establishes eligibility and meets weekly requirements, prohibiting self-attestation as proof of eligibility.
States must require unemployment claimants to register with a state agency, maintain a work search record, and provide it weekly to demonstrate they are actively seeking work.
States can allocate up to 5% of recovered overpayments or collected contributions to a state fund for purposes like deterring improper payments and modernizing technology, provided they meet certain certification requirements.

119th Congressin committeeHR. 7847(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

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

8 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account