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
- FYI 2017 Detailed Budget Documentation: https://www.dol.gov/general/budget
- FY 2017 Congressional Budget Justification, Employment & Training Administration, State Unemployment Insurance and Employment Service Operations: https://www.dol.gov/sites/default/files/documents/general/budget/CBJ-2017-V1-08.pdf