The budget proposal would cut the Labor Department’s budget from current levels to $9.6 billion for FY 2018, a 21% decrease.  Despite the budget cuts, the proposal would expand the Reemployment Eligibility Assessment program and UI program integrity efforts.

The President’s proposal:

  • Requires National Directory of New Hires (NDNH) cross-matching for benefit payment control (BPC) and requires states to provide monetary penalties for employers that fail to report. Current law only permits states to provide penalties not to exceed $25 for failure to comply and not to exceed $500 for fraud. The bill requires penalties of not less than $25 for failure to comply and not less than $500 for fraud.
  • Mandates that states cross-match with the Social Security Administration (SSA) prisoner database, the Prisoner Update Processing System (PUPS), to identify fraudulent claims by incarcerated individuals.
  • Allows states to use up to 5% of recovered improper payments for integrity activities

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