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Labor Dept. Has Done Nothing To Recover Half-A-Billion Dollars In Suspected Covid Fraud

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11.03.2026

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Labor Dept. Has Done Nothing To Recover Half-A-Billion Dollars In Suspected Covid Fraud

Congress has created a Leviathan too big to manage, giving fraudsters an easy opportunity to pick taxpayers’ pockets by the millions and billions.

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A recent House Ways and Means subcommittee hearing managed a unique feat by showcasing the federal government at its best and worst simultaneously. Best, in the sense that lawmakers drew attention to a potential opportunity for taxpayers to recover fraudulent benefits paid out during the pandemic. Worst, in the sense that repeated inaction by federal bureaucrats made the hearing necessary at all.

I noted nearly three years ago that federal auditors estimate that between $100 billion and $135 billion of the roughly $900 billion in Covid-related unemployment benefits constituted fraud. But even though enforcement efforts have recouped on taxpayers’ behalf a mere fraction of that amount, government officials appear unwilling to act when nearly $1 billion of potentially recoverable cash lies right underneath their noses.

Unclaimed Debit Card Dollars

The hearing featured testimony........

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