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GOP targets billions in COVID fraud with new bill: ‘Greatest heist of American taxpayer dollars in history’

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Top Republicans in the House are hoping to recover billions of dollars in wasted taxpayer funds by paying states to claw back fraudulent COVID-era unemployment benefits that went to scammers instead of people in need.

The bill comes just weeks after a federal watchdog testified that “at least” $191 billion was wasted on fake COVID unemployment claims. That finding followed a call from President Biden in his State of the Union address to “prosecute criminals who stole relief money” during COVID, a sign that the GOP has a chance of becoming law this year.

Despite Biden’s call, one sponsor of the bill, House Ways and Means Commtitee Chairman Jason Smith, R-Mo., said the Biden administration has done little to back up Biden’s words and that the Republican House needs to act.

FEDS WASTED ‘AT LEAST’ $191 BILLION ON FAKE COVID UNEMPLOYMENT CLAIMS, SAYS LABOR DEPARTMENT WATCHDOG

Rep. Jason Smith, R-Mo., proposed a bill aimed at recovering lost COVID unemployment funds. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

Rep. Jason Smith, R-Mo., proposed a bill aimed at recovering lost COVID unemployment funds. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

“At a time when Americans were suffering from government lockdowns, hundreds of billions were being stolen from those in need,” Smith said. “Yet the Biden Administration has ignored the rampant identity theft and fraud that’s left these people devastated.”

“It has kept itself and the American people in the dark about the size and scope of unemployment fraud that was stolen during COVID,” he said. “House Republicans are now turning on the lights after raising the alarm about this greatest theft of tax dollars in American history.”

Another sponsor, House Oversight and Government Reform Committee Chairman James Comer, R-Ky., said COVID theft “may be the greatest heist of American taxpayer dollars in history.”

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Republicans say President Biden didn't do enough to stop COVID unemployment fraud.

Republicans say President Biden didn’t do enough to stop COVID unemployment fraud. (Alex Wong/Getty Images)

The two committee chairmen said some estimates say as much as $400 billion in fraudulent unemployment payments may have been made during the COVID pandemic, during which nearly $900 billion in relief payments went out.

Under their bill, state workforce agencies that manage federal unemployment benefits would be incentivized to pursue fraudulent claims – they would keep 25% of everything they recover, and let them use it at the state level to improve unemployment insurance integrity by hiring fraud investigators, boosting ID verification and other steps.

In early February, the Department of Labor’s Office of Inspector General told Smith’s committee that at least $191 billion in COVID unemployment benefits were lost to fraud, and likely more. That report said COVID created a “perfect storm” for fraud, as people were allowed to self-certify that they were eligible to receive Pandemic Unemployment Assistance (PUA), which went to millions of people who were not traditionally eligible for unemployment benefits.

CALIFORNIA, NEW YORK, ILLINOIS USED COVID-19 RELIEF FUNDS TO PUSH CRT IN SCHOOLS

A Labor Department watchdog said at least $191 billion was lost to fraud.

A Labor Department watchdog said at least $191 billion was lost to fraud. (Tom Williams)

“The reliance solely on claimant self-certifications without evidence of eligibility and wages during the program’s first 9 months rendered the PUA program extremely susceptible to improper payments, including fraud,” Inspector General Larry Turner said.

The OIG found that the improper payment rate for unemployment insurance was about 10% before COVID but jumped to roughly double that during COVID.

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Other witnesses at Smith’s committee said state workforce agencies weren’t prepared to handle the rush of COVID-related claims, which contributed to fraud.

Source: https://www.foxnews.com/politics/gop-targets-billions-covid-fraud-new-bill-greatest-heist-american-taxpayer-dollars-history

Politics

Lawmaker says his state may need to ‘divorce’ from USDA over this ingredient in school lunches

A state lawmaker is aiming to “divorce” Iowa from federal regulations to ban margarine and vegetable public school meals over health concerns.

“Seed oils and margarine are wreaking havoc on the health of our children,” Iowa state Rep. Jeff Shipley told Fox News. “Fake industrial fats like margarine are connected to a myriad of mental and physical illness.”

An Iowa bill could ban margarine across the state, claiming the butter alternative can cause illness.

An Iowa bill could ban margarine across the state, claiming the butter alternative can cause illness. (iStock)

Shipley’s legislation, House File 341, passed a subcommittee on Feb. 23. Some margarine, which is made up of vegetable oils and water, has been associated with higher cholesterol levels, according to Harvard Health. It also contains trans fat, which has been associated with increased depression, the National Library of Medicine reported in 2016.

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“Animal fats, or higher quality saturated fats like olive or avocado oil are, essential nutrients for children’s health and developments,” Shipley said.

Both margarine and butter can have associated health risks.

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Jay Cowin, a registered nutritionist, previously told Fox News that seed oil was “full of polyunsaturated fatty acids like Omega-6, which can cause inflammation and liver damage. But compared to margarine, butter contains more saturated fats, which have been associated with a higher risk of heart disease.

And some experts found increased sugar and fat intake contributed to increased rates of depression and anxiety

An Iowa bill's sponsor says USDA guidelines are leaving children nutritionally starved.

An Iowa bill’s sponsor says USDA guidelines are leaving children nutritionally starved. (Fox News)

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Shipley told Fox News that his bill’s text conflicts with guidelines from the U.S. Department of Agriculture, which provides funding for public school meals. The nutritional guidelines outlines limited sugar and sodium intake and specific low-fat alternatives for some foods. 

Shipley said the guidelines restricted “fat and protein, thus leaving children nutritionally starved and unhealthy.” 

“Our commitment to the school meal programs comes from a common goal we all share – keeping kids healthy and helping them reach their full potential,” Agriculture Secretary Tom Vilsack said in a recent press release on updated school meal guidelines. “Research shows school meals are the healthiest meals in a day for most kids, proving that they are an important tool for giving kids access to the nutrition they need for a bright future.”

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“Since it’s become clear that the USDA guidelines are not supportive of children’s health, ultimately we will need to divorce the state of Iowa from these guidelines,” Shipley said, though he recognized his legislation could jeopardize USDA funding for Iowa school meals.

House File 341 is awaiting a full committee vote. 

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Politics

WI Assembly set to vote on bill that would make it a felony to encourage, engage in violence during a riot

Anyone who encourages a riot or engages in violence during a riot would face felony charges under a bill Wisconsin’s Assembly is poised to take up Wednesday.

The Republican-backed measure would make urging, promoting or organizing a riot a felony punishable by up to three years and six months in prison. Engaging in violence during a riot would a felony with up to six years in prison.

The bill defines a riot as a disturbance involving violence that’s part of a gathering of at least three people. The act of violence must have a clear and present danger of property damage or personal injury.

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Assembly approval would send the bill to the Senate. However, its prospects look dim. Democratic Gov. Tony Evers vetoed a similar bill last year that would have made attending a riot a misdemeanor with up to nine months’ jail, and participating in a riot that causes property damage or injuries would have been a felony with up to three years and six months in prison.

The Wisconsin Assembly is set to vote on a bill that would make it a felony to encourage a riot or engage in violence during a riot.

The Wisconsin Assembly is set to vote on a bill that would make it a felony to encourage a riot or engage in violence during a riot.

Evers said in his veto message that it’s already a crime to refuse police orders to withdraw from an unlawful assembly, and that the bill could infringe on free speech rights.

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Republicans introduced the bill after protesters burned swaths of downtown Kenosha, Wisconsin, and damaged statues during demonstrations against police brutality in 2020.

 

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Politics

Trump supporters outnumbered in New York as few take up Trump’s call to ‘PROTEST’

Former President Donald Trump’s supporters are far outnumbered in New York City ahead of his potential arrest Wednesday, despite the Republican’s call for his voters to “PROTEST, PROTEST, PROTEST.”

Demonstrators cheering on the potential indictment against Trump gathered outside the offices of Manhattan District Attorney Alvin Bragg, drowning out the handful of protesters there supporting the former president, according to Politico. The grand jury is set to meet again Wednesday.

“I wish more people had shown up,” Trump supporter Philippe Lejeune told the outlet.

Law enforcement sources say an indictment against Trump was unlikely to come down on Tuesday, however, saying it wouldn’t come until Wednesday at the earliest. If Trump is truly indicted it may galvanize more of his supporters to protest.

Few Americans are taking up former President Donald Trump's call to

Few Americans are taking up former President Donald Trump’s call to “PROTEST” ahead of his potential arrest this week. (AP Photo/Evan Vucci, File)

The NYPD prepared for potential widespread protests on Tuesday, but they never arrived.

The NYPD prepared for potential widespread protests on Tuesday, but they never arrived. (Leonardo Munoz)

Out of an abundance of caution, the NYPD ordered all 36,000 of its officers to be in uniform and on standby in anticipation of Trump’s potential arrest Tuesday. U.S. Capitol Police also erected barricades and called for more manpower ahead of the potential indictment, but few protesters showed up and Trump remains unmolested.

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The USCP clarified on Monday that it is not aware of any specific threat against the Capitol, but is making preparations out of an abundance of caution.

Several law enforcement groups were scheduled to meet at noon on Monday at NYPD headquarters in Manhattan to discuss the logistics of a potential indictment against Trump. The NYPD hosted the meeting, and attendees included Michael Magliano, chief of the Department of Public Safety, which oversees New York court officers, the head of the Secret Service’s New York office, and a representative from the Manhattan District Attorney’s Office.

Trump would be the first former president in U.S. history to face criminal charges if Bragg’s office levels them. The potential indictment is expected to allege campaign finance infractions relating to records keeping, what some call a slim pretext for such a high-profile case.

U.S. Capitol Police prepared for potential protests surrounding Trump's arrest.

U.S. Capitol Police prepared for potential protests surrounding Trump’s arrest. (AP Photo/Evan Vucci)

Some Democrats fear that the potential charges are not up to the task and could backfire, making it harder for allegations to stick relating to the other two investigations into Trump.

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Bragg’s investigation is just one of three Trump is facing, and the charges stemming from it may be the easiest ones for Trump to defeat. A failed prosecution of the former president – whose opponents have long dreamed of locking him up – could only serve to bolster his common refrain that he is the victim of a “witch hunt.”

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