IFPTE Urges Lawmakers to Reject H.R. 1163, Legislation that Weakens Unemployment Insurance Systems

As the House of Representatives prepares to vote on H.R. 1163, the so-called “Protecting Taxpayers and Victims of Unemployment Fraud Act,” IFPTE urged members of the House of Representatives to vote against this misguided bill that weakens states’ unemployment insurance (UI) systems, delays modernization of UI systems, and may result in a surprise bill for workers who received an overpayment of pandemic UI benefits through no fault of their own.

IFPTE’s letter to Congress points out that H.R. 1163 “also allows states to contract out and privatize the staffing for their UI systems for the next seven years, rather than utilizing qualified and experienced public servants for this important work.” This provision extends an emergency exemption included in the CARES Act to allow states to increase staffing to deal with expanded pandemic UI benefits and the increase in pandemic-related UI claims. However, the “outsourced staffing created inefficiencies, errors, and overpayments that had to be remedied by public servants with experience and institutional knowledge of the UI system.” Extending that exception and opening the door to outsourcing and privatizing UI systems only undermines the stated intention of the legislation.

A 2022 report from the Government Accountability Office notes that state UI systems have seen a 32% decline in funding between 2010 and 2019, adjusted for inflation. While the Department of Labor has recently undertaken efforts to support modernization and improve fraud detection in state UI systems, this legislation pulls back DOL funding.

Were this legislation to be passed by the House of Representatives, it is not expected to be taken up by the Senate and enacted into law.

Read IFPTE’s letter to the House of Representatives opposing H.R. 1173 here.

UPDATE - H.R. 1163 passed the House by a vote of 230 to 200. See how you Representative voted here.