Critics worry about Biden’s revival of pandemic program due to high improper payment rate.

The White‍ House​ Faces Scrutiny Over Pandemic-Era Program

The⁣ White⁢ House is facing criticism as it considers reviving elements of⁣ a pandemic-era program ahead of ​the⁣ 2024 presidential election. The program, known as the Pandemic Unemployment Assistance (PUA),‍ came under scrutiny after ‍a report released by the Department of Labor revealed that more than one-third of expanded ‌unemployment benefits distributed during the height of COVID-19 lockdowns⁣ were deemed improper.

Expanded Eligibility and Improper Payments

Traditionally,⁢ unemployment ⁢benefits were ⁣provided‍ to full-time ‌employees.‌ However, from⁣ March 2020 to September 2021, the PUA program expanded eligibility to include independent contractors, self-employed workers, and individuals who did not meet the previous qualification criteria.‌ This expansion resulted in over $100 billion in payments, many of which were later found to be inappropriate.

“The Department [of Labor] has reported to the Office of Management Budget that the PUA program had a⁢ total improper payment rate of 35.9 percent,” the report reads.

While the report acknowledges that some payments could not be verified as valid and 1.5% were underpayments,​ critics argue that the high improper payment ⁤rate is​ concerning. Matt Weidinger, ⁣a ⁤senior fellow at the American ⁣Enterprise ⁢Institute,⁢ states, “The report buries ‍the fact that⁢ this ​program was deeply abused, and they also buried the fact ⁤that they ⁣want ⁤to revive the program.”

Denials and Budget Proposal

The White House ‍denies ⁢any intention to revive ⁤the‌ PUA program. White House⁤ spokesman ⁢Michael⁢ Kikukawa stated, “The president’s budget does⁢ not propose reviving the temporary, emergency Pandemic Unemployment Assistance program.” However, ‌President Joe ‌Biden’s budget proposal does ⁣mention⁢ “improving benefit levels and access” to unemployment insurance‌ and “expanding eligibility to ⁣reflect the modern labor force.”

Kikukawa emphasizes that‍ Biden’s proposal includes measures​ to crack ‌down on fraud and ‍identity theft, aiming to recover funds lost to fraud ⁢during the previous administration. However, specific details regarding expanded eligibility and qualifications remain unclear.

Controversy and Safeguards

Weidinger argues that Biden’s ​proposal aligns with the parameters ⁣of the troubled PUA program, stating,⁢ “They want to revive PUA, even‌ if⁣ they ⁢don’t⁣ use those exact words. You don’t‌ have to be much of ‌a sleuth to know what they’re talking about.”

The Department of Labor‌ acknowledges that most improper payments⁤ occurred during the program’s initial nine⁤ months, which were under the Trump administration. ⁤Safeguards, including​ enhanced identity ⁣verification and improved information technology systems, were implemented⁤ afterward. Funding from the American Rescue Plan aimed‌ to strengthen these safeguards.

Despite these efforts, significant​ errors occurred. Reports surfaced of a⁣ Nigerian⁢ fraud ring that fraudulently obtained hundreds⁤ of millions of ⁤dollars. California temporarily suspended‍ applications to its program⁤ due to a surge in fraudulent activity, with PUA being responsible for the majority of the⁣ fraud during the pandemic.

Calls⁢ for Permanent Program‌ and ⁣Congressional ⁣Challenges

Some left-leaning members ‍of​ Congress, ​including Sen. Ron Wyden (D-OR) ‍and Rep. Adam Schiff (D-CA), have advocated for⁢ making the⁢ PUA program‍ permanent. ⁣However, with Republicans in ‌control‍ of the House, expanding unemployment benefits would face significant challenges.

Critics ‌argue that the report’s findings do not support these efforts. Weidinger states, “It struck me as very curious that the administration would report this​ very large number ⁢ [of improper payments] in minimalist fashion⁤ while also calling to revive‌ that ⁢very same program in the future.”

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