President Biden asked Congress Thursday for $1.6 billion to crack down on COVID relief fraud — only two days after he nominated a new cabinet secretary who oversaw billions of dollars’ worth of tha…
As part of its request, the White House asked for $600 million to crack down on “criminal syndicates who preyed on Americans during a time of unprecedented health and economic emergency;” another $600 million to “invest in better prevention of identity theft and all forms of major fraud involving public benefit programs;” and $400 million to redress “harms to innocent victims” of the fraud.
Su, 54, who served as the Golden State’s top labor official from January 2019 to July 2021, admitted during her final year in office that California’s Employment Development Department may have distributed up to $31.4 billion in unemployment funds to fraudsters. Under Su’s leadership as California’s labor secretary, $31.4 billion was distributed in unemployment funds to fraudstersThe White House announcement comes a month after the Republican-controlled House Oversight Committee held its first hearings on COVID relief fraud, which took advantage of more than $4.5 trillion in pandemic stimulus enacted by Biden and former President Donald Trump.
The relief had been intended to make whole ailing businesses and unemployed workers following economic shutdowns caused by the onset of the pandemic in March 2020. About 22 million jobs were lost in those early months, with unemployment nearing 15%.
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