18. Department of Labor and Related Agencies · Notable · Needs Congress
Enact unemployment insurance program integrity reforms
Printed page 598 18. Department of Labor and Related Agencies
“Congress should enact bipartisan commonsense UI program reforms, including statutory authority for the Labor Office of Inspector General (OIG) to access all state UI records for the purposes of investigation and requiring state agencies to crossmatch applicants with the National Directory of New Hires.”
What has happened
- Partially done
Section 73001 of Public Law 119-21 enacted one unemployment insurance integrity reform: it bars federal funds from paying unemployment compensation to claimants whose base-period wages reach $1,000,000, requires a self-certification on every application, requires state systems "to verify wage eligibility by assessing claimant income to the degree possible", and requires state agencies to make claimants repay amounts they were not entitled to. Neither of the two reforms the Quote names is in it: the Labor Office of Inspector General still lacks statutory authority to reach all state UI records, and no crossmatch against the National Directory of New Hires has been required. The OIG was still asking Congress for expanded authority in its May 2026 semiannual report.
Research log
What was searched, and what didn’t count as evidence
Research notes
- partial under the Requires-Congress ladder: “enactment of part of the ask is partial”. The Quote asks for “bipartisan commonsense UI program reforms, including” two named items; one integrity reform of the class was enacted and neither named item was.
- The enrolled text was read at
govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htmand grepped after flattening: “National Directory of New Hires” occurs zero times, “unemployment compensation” fifteen, all within subtitle D of title VII. - The OIG’s own legislative recommendations in the May 2026 semiannual report still ask for authority to reach state UI records and for expanded H-1B investigative authority, which is the cleanest evidence that the named reforms have not been enacted.
- Network review of the 2026-09-24 scan round: the first named reform is now delivered by regulation,
not by statute, and the rung does not move. DOL’s final rule Federal-State Unemployment
Compensation (UC) Program; Data Availability (FR 2026-18978, 2026-09-16, RIN 1205-AC11, docket
ETA-2025-0004, https://www.federalregister.gov/documents/2026/09/16/2026-18978/federal-state-unemployment-compensation-uc-program-data-availability)
removes the permissive disclosure at 20 CFR 603.5(i) and adds 603.6(c): the Department “interprets
section 303(a)(1), SSA, as requiring each State UC agency to disclose confidential UC information upon
request to a Federal official for purposes of UC program oversight and audits”, DOL-OIG included.
Effective 2026-11-16; States that must change their laws have until 2027-09-16. The
preamble grounds it in DOL-OIG’s warning since 2020 that its access “could end at any time”, and
notes OIG’s fraud-investigation access already rests on 603.6(a). This is the Quote’s object — OIG
access to state UI records — reached by an executive workaround under the “methods of
administration” clause rather than by the statutory authority the Quote asks Congress for, and
limited to oversight and audits. Playbook §3 logs an executive workaround on a Requires-Congress
ask as attempted, and an attempted event appended after the 2025-07-04 partial would render as
a fall that did not happen, so it is recorded here and not as an event; the rung stays partial on
P.L. 119-21. The rule says nothing about the National Directory of New Hires, the Quote’s second
named reform. Full text read at
govinfo.gov/content/pkg/FR-2026-09-16/html/2026-18978.htm.
- Action
- other
- Object
- Unemployment Insurance program integrity statutes
- ID
- 1645