But the new spending package soon faced the prospect of a tough battle in Congress. For years, lawmakers have failed to overhaul government benefits, upgrade computer systems or take other steps to keep the federal government safe, even though they often complain about waste, fraud and abuse. I've been failing. Provides funds for future emergencies.
A newly proposed bill would spend about $675 million to protect the program from identity theft, criminals who frequently use stolen information on real Americans to collect government aid. The purpose is to drive away. Lawmakers would allocate about $550 million to the Justice Department and the chief inspector general to strengthen oversight of federal spending.
The bill is being authored by Majority Whip Sen. Dick Durbin (D-Ill.). Sen. Gary Peters (D-Mich.) heads the House Homeland Security and Governmental Affairs Committee. Sen. Ron Wyden (D-Ore.), Chairman of the Finance Committee. The three lawmakers combined the new spending proposal with additional powers for federal law enforcement that could give federal law enforcement more time to investigate crimes targeting certain pandemic relief programs.
“Bad actors have gotten their hands on funds that were supposed to help our communities get through an incredibly difficult time,” Peters told reporters, adding that the proposal was a sign that the government had “stolen funds.” It added that it would help “recover funds.”
The legislation comes four years after the U.S. government first launched its historic response to the coronavirus pandemic, adopting a series of aid packages totaling more than $5 trillion in federal aid. This money ultimately saved the economy, helped displaced workers, and protected businesses from closing forever. But the money also became an attractive target for criminals, who took advantage of Washington's impatience and leniency since the Trump administration, amassing billions of dollars in fraud.
Amid the pandemic, scammers have targeted the nation's unemployment insurance program, stealing real people's identities and forfeiting unwarranted benefits, according to a yearlong investigation by The Washington Post called “The Covid Money Trail.” It became clear that he had obtained the. Last year, federal authorities estimated that fraudsters stole $135 billion from the program, equivalent to $1 in every $7 spent on unemployment benefits.
Other cases that began in 2020 used fake tax records, ineligible Social Security numbers, and the names of deceased people to defraud the Small Business Administration of lower interest rates that were supposed to help businesses maintain payroll during the economic crisis. obtained a loan. Two relief funds, the Paycheck Protection Program (PPP) and the COVID-19 Economic Injury Disaster Loan (EIDL), may have collectively been responsible for more than $200 billion in fraud-related losses, an agency audit found. This was discovered by the inspector general.
Gene Sperling, a senior adviser to the president, said rampant taxpayer theft is due to a lack of investment in federal technology, an overwhelming demand for federal aid, and “a few fundamental changes” early in the pandemic. The reason for this was the cancellation of measures to prevent fraudulent activities. As a result, “the Biden administration has inherited a historic level of injustice,” he said.
On the other hand, Mr. Biden will The Justice Department has announced a new lead prosecutor for pandemic fraud. Next year, he called on Congress to approve a $1.6 billion package that would increase federal enforcement for coronavirus-related crimes while strengthening U.S. aid programs to prevent future identity theft.
Under Biden's watch, the Justice Department has also stepped up its crackdown. Last August, for example, federal prosecutors announced 718 charges and other sanctions following a three-month investigation, alleging fraud totaling about $836 million. On Tuesday, Attorney General Merrick B. Garland highlighted some of these prosecutions and stressed that the government's efforts are “not finished.”
But the activity stands in stark contrast to delays on Capitol Hill, where lawmakers have failed to implement Biden's demands for years and federal watchdog agencies remain underfunded. House Republicans have often accused the president of misspending coronavirus relief money, even though federal investigators have found the worst fraud occurred during the Trump administration. No Republicans signed on to the new bill announced Tuesday, but members of their party supported some of the proposed changes to unemployment insurance and other federal benefit programs.