H.R. 7847

Stop Unemployment Fraud Act

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Sec. 5. Secretarial monitoring

Section 303 of the Social Security Act (42 U.S.C. 503) is further amended by adding at the end the following:

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(q) Monitoring required

(1) In general. The Secretary of Labor shall monitor each State’s compliance with subsection (r).

(2) Withholding of funds. In the case that the Secretary identifies a State that is not in compliance with subsection (n) or (o), the Secretary may, after reasonable notice and hearing—

(A) withhold 5 percent of the funds appropriated pursuant to section 901(c)(1)(A) for such State; and

(B) implement for the State a corrective action plan to bring the State into compliance with such subsections.