Biden to Ask Congress for $1.6 Billion to Crack Down on Covid Relief Fraud

By Andrew Restuccia and Bryan Mena of The WSJ.

Another case of government spending leading to more government spending. Excerpts:

"President Biden is calling on Congress to approve a wide-ranging $1.6 billion legislative package aimed at cracking down on fraud stemming from the government’s coronavirus pandemic relief programs.

The measure aims to step up the federal government’s capacity to investigate and prosecute fraud; improve efforts to prevent identity theft tied to the spate of pandemic benefit programs; and help victims of identity theft."

"Since the start of the pandemic, Congress has approved several bills to address the economic effects of Covid-19 totaling more than $4.5 trillion in spending. During the Trump administration, Congress passed pandemic-relief bills that increased the amount paid to recipients of unemployment benefits and extended the length of time those payments were given. The legislation also set up a program to provide forgivable loans to small businesses.

In 2021, Mr. Biden signed a $1.9 trillion coronavirus aid bill that offered a $1,400 check to many Americans, an extension of a $300 weekly jobless-aid supplement and a one-year expansion of the child tax credit that provided periodic payments for many households. The bill, known as the American Rescue Plan, passed Congress largely along party lines.

The influx of federal money resulted in a wave of fraud that federal prosecutors continue to investigate. More than $250 million was allegedly stolen from a U.S. coronavirus pandemic aid program that fed low-income children."

"the federal government might have paid out $191 billion in improper pandemic unemployment benefits"

"5 billion in emergency pandemic loans were awarded to applicants that used questionable and unverified Social Security numbers."