Recover COVID Unemployment Fraud in Banks Act

The bill's objective to recover unclaimed pandemic-era unemployment compensation funds is a legitimate exercise of federal power under the Property Clause (Article IV, Section 3, Clause 2) and the Spending Clause (Article I, Section 8, Clause 1), as these funds originated from a federal program and remain property of the United States until properly disbursed. The Necessary and Proper Clause (Article I, Section 8, Clause 18) authorizes Congress to enact measures to secure such federal property. However, the bill's attempt to compel state unclaimed property administrators to surrender escheated…

This bill attempts to recover unclaimed pandemic-era unemployment funds from financial institutions and state unclaimed property administrators. Such action exceeds the enumerated powers of Congress under Article I, Section 8, and intrudes upon matters reserved to the States by the Tenth Amendment. The management of unclaimed property is a traditional state function, and the federal government lacks authority to reclaim funds that have been distributed to the States for unemployment compensation. Moreover, the Ninth Amendment reminds us that the enumeration of certain rights shall not be const…

This bill exceeds the enumerated powers of Congress. The Constitution grants Congress only those powers expressly listed in Article I, Section 8, and the Tenth Amendment reserves all other powers to the States or the people. The recovery of unclaimed funds from financial institutions or state unclaimed property administrators is not among the delegated powers; it intrudes upon the traditional state function of escheat and property administration. While the funds originated from federal pandemic unemployment compensation, once disbursed to States and individuals, they cease to be federal proper…

The Congress possesses the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The funds in question originated from a federal exercise of that power in response to a national economic emergency. The recovery of unclaimed moneys from that program is a necessary and proper means to ensure the faithful execution of the spending power and to prevent the dissipation of federal resources. As this Court held in McCulloch v. Maryland, the federal government may employ all means which are appropriat…