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Extra $300 Unemployment Benefits May Not Arrive Until April Or Later, Says Labor Department
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Extra $300 Unemployment Benefits May Not Arrive Until April Or Later, Says Labor Department
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By Natalie Alms
Feb 25, 2021
Of the $400 billion in CARES Act unemployment benefits distributed last year, states paid over $5.4 billion in potentially fraudulent unemployment claims between March and October of 2020, according to the Department of Labor’s inspector general. The actual number may reach tens of billions of dollars, the watchdog said.
In California alone, at least 10% of the benefits paid since the start of the pandemic have been to fraudulent claims, and that number could be as high as 27%, or $29 billion, the IG said in a Feb. 23 memo. Other states have also reported fraudulent claims. New York stated it paid $1 billion in fraudulent claims, and Maryland claimed $501 million, according to the IG.
President Joe Biden’s pick to lead his administration’s response to the economic damage caused by government shutdowns amid the COVID-19 pandemic previously lost $600 million of Washington state’s aid dollars to foreign fraudsters in a hasty unemployment program rollout.
Earlier this week, reports indicated that former head of the Washington state Employment Security Department (ESD) Suzi LeVine would begin an interim leadership position in the Labor Department’s Employment and Training Administration program on Monday, overseeing the implementation of the federal unemployment benefits included in Biden’s $1.9 trillion COVID-19 relief proposal. While some have said that new leadership could help remove some of the “chronic delays” in the pandemic payments, others have questioned LeVine’s capabilities to properly and carefully handle the process, considering her rollout track record.
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