Protecting Taxpayers and Victims of Unemployment Fraud Act

This bill allows states to retain 25% of funds recovered from fraudulent unemployment claims (particularly pandemic-era claims) to strengthen fraud prevention systems. States can use these funds for modernizing unemployment systems, hiring fraud investigators, covering administrative costs for fraud detection, and other program integrity activities. The bill requires states to implement specific data-matching systems to prevent fraud, including cross-checking claims against employment records, databases of incarcerated individuals, and deceased individuals. It also extends emergency staffing flexibility for fraud detection through 2030 and establishes a 10-year window for prosecuting unemployment fraud.