EXCLUSIVE: Sen. James Lankford Goes For Jugular Of $100,000,000,000 In Blue State Unemployment Fraud

Oklahoma Republican Sen. James Lankford is introducing a bill Thursday to root out fraud in unemployment programs, especially in blue states.

Lankford introduces the Stop Unemployment Fraud Act to reform the joint federal-state unemployment insurance (UI) program in the wake of hundreds of billions in fraudulent unemployment benefits paid out during the height of layoffs during the COVID-19 pandemic. THE The bill would strengthen the program and ensure that only those eligible and in need could benefit from the system. (RELATED: EXCLUSIVE: Whip Emmer says blue states are ‘on alert’ in Trump’s war on fraud)

“Making government more efficient is not a partisan issue, it’s an American issue,” Lankford told the Daily Caller News Foundation in a statement.

The bill would require unemployment insurance claimants to verify their identity and only authorize unemployment insurance payments once their eligibility is determined, requiring states to use the Integrity Data Hub — a fraud alert center — to compare unemployment claimants. It will also strengthen job search requirements and direct the Department of Labor to monitor the state’s compliance with work requirements.

The bill would also incentivize states to recoup improper payments resulting from the COVID-19 pandemic.

WASHINGTON, DC – SEPTEMBER 20: Rep. Lloyd Smucker (R-PA) speaks during a markup meeting with the House Budget Committee on Capitol Hill on September 20, 2023 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

Pennsylvania Republican Rep. Lloyd Smucker, who has long called for unemployment insurance reform, is introducing the bill in the House. Twelve Republican lawmakers are co-sponsoring the bill in the lower house, and Republican Senators Mike Crapo of Idaho, Bill Cassidy of Louisiana and Steve Daines of Montana are co-sponsoring it in the Senate.

“Bad actors have stolen more than $100 billion in unemployment benefits during the pandemic, and recent findings in Minnesota illustrate that vulnerabilities in the unemployment system continue to persist,” Smucker told DCNF in a statement.

Smucker and Lankford have also worked together to bring attention to fraud cases in the past. The two lawmakers sent a letter to Labor Secretary Lori Chavez DeRemer in March 2025 to “take swift action to address the failures of the Biden administration that have undermined the nation’s unemployment insurance system.”

“During COVID, fraudsters exploited loopholes in the unemployment system and stole billions while taxpayers were left with the bill,” Lankford said. “This legislation strengthens verification, improves coordination among states, and ensures that benefits go to Americans who actually qualify for them, not criminals who exploit the system. »

Lankford, who serves as vice chair of the Senate Republican Conference, has championed the elimination of waste, fraud and abuse. In 2024, he championed the Taxpayers Right-to-Know Act, which led to the launch of the Inventory of Federal Programs that allows the American people to see how their tax dollars are being spent.

An estimated $100 billion to $135 billion in pandemic unemployment benefits – taxpayer money – was lost to fraud. The Biden administration’s policies have undermined our nation’s unemployment insurance systems. We need comprehensive reforms to restore accountability, prevent fraud, provide…

– Rep. Lloyd Smucker (@RepSmucker) March 21, 2025

Maryland is currently under scrutiny for a pandemic unemployment fraud case in which $760 million was overpaid and as much as $1.3 billion may have been sent incorrectly. More than 180,000 refund notices have been sent, with many recipients claiming to be victims of iidentity theft.

A 2025 audit also highlighted California, New York and Massachusetts for filing $305 million in improper claims. The audit further singled out California for paying benefits to ineligible beneficiaries. California Republican Rep. Young Kim noted $32 million in statewide unemployment fraud during a February hearing with Treasury Secretary Scott Bessent.

President Donald Trump announced a “war on fraud” during his State of the Union address and named Vice President JD Vance to lead the charge, kicking off the effort to tackle the problem nationally.

“Congress bears the ultimate responsibility for protecting taxpayer dollars,” Smucker said. “The Stop Unemployment Fraud Act will help states recover stolen funds and strengthen safeguards to ensure the long-term integrity of this program. »

All content created by the Daily Caller News Foundation, an independent, nonpartisan news service, is available free to any legitimate news publisher capable of delivering a large audience. All republished articles must include our logo, our reporter’s byline and DCNF affiliation. For questions about our guidelines or our partnership, please contact licenses@dailycallernewsfoundation.org.