WASHINGTON (TNND) — The effort to reclaim pandemic relief funds that were misappropriated is still a critical focus for several congressional members. As investigations carry on, lawmakers are advocating for an extension of the authority to pursue fraud claims, with billions of dollars involved.
During the peak of the COVID-19 pandemic, multiple relief initiatives were launched to assist businesses and individuals impacted by closures. The Small Business Administration (SBA) estimated that around $200 billion in possibly fraudulent relief loans were disbursed. Efforts to recover these funds have been in progress, with Republicans criticizing the Biden administration for lack of adequate oversight.
“We owe it to the American people to uncover the truth behind the largest theft of taxpayer dollars in our nation’s history,” stated Rep. James Comer, R-Ky., in February 2023. “We need to ascertain where this money went, how much was siphoned off by fraudsters or ineligible recipients, and what measures should be implemented to prevent this from occurring again.”
A report from the government accountability office published in late March indicated that the SBA was unable to pursue nearly 2 million fraud claims due to lack of complete information. Some of the authority to continue pursuing fraud in pandemic-related programs is close to expiration, including a program created to support venues and artists during shutdowns. Business Insider highlighted that several prominent artists misused funds from the program on luxury indulgences like private jets, clothing, and parties.
In light of this, Sen. Joni Ernst, R-Iowa, and Rep. Roger Williams, R-Texas, proposed legislation to extend the statute of limitations to 10 years for certain programs, offering additional time to combat fraudsters.
“Thousands of diligent small businesses were denied crucial relief because con artists, gang members, and felons exploited COVID to raid these programs. Every dishonest individual who stole from taxpayers must be held accountable,” Sen. Ernst emphasized in the announcement of her bill.
Ken Dieffenbach, the Executive Director of the Pandemic Response Accountability Committee (PRAC), urged lawmakers last month to prevent the committee from dissolving later this year so it could continue addressing fraud claims. He recounted various attempts made by individuals to defraud the government.
“Applicants who have previously applied in five other states or those who used names like Charlie Chaplin, Abraham Lincoln, or Foghorn Leghorn— as at least three individuals did in pandemic programs—were prevented from receiving funds before the money was disbursed, I can assure you,” Dieffenbach remarked during the March House Oversight hearing.
In PRAC’s most recent report to Congress, the committee noted that its work has facilitated investigations into over 23,000 individuals. Should the committee be disbanded, valuable ongoing investigation data could be at risk of being lost.
