Rep. Steven Horsford of Nevada is sponsoring a bill to help states upgrade computer systems that process unemployment insurance claims.
Horsford wants to create a basic federal computer program states could then customize for their own needs.
Horsford, a Democrat, said it became apparent at the outset of the COVID-19 pandemic that some states needed to modernize and upgrade “neglected” computer systems.
In April, with a massive influx of unemployment claims, Nevada Gov. Steve Sisolak said the state’s computer system, which he later called “antiquated,” could not handle the surge.
Each state runs its own unemployment program, overseen by the federal Department of Labor. The patchwork system means every state’s system is different, with many running on decades-old computer software.
Horsford’s bill would also create a “digital services team” in the Department of Labor to help states with technology issues.
Nevada’s unemployment rate ballooned in the beginning of the coronavirus pandemic, hitting almost 30% in April. The Bureau of Labor Statistic’s December 2020 data has Nevada’s unemployment rate at 9.2%.
“In Nevada, obviously we had an unprecedented number of people who became unemployed and were furloughed as a result of the public health emergency that we’ve been in for the last year,” Horsford said.
Nevada’s unemployment system saw massive backlogs during the beginning months of the pandemic that officials say have now largely been sorted through.
The delays led to increasing frustrations and anger on the part of recipients.
In August, Nevada’s backlog of claims approached 250,000.
Horsford said the proposed bill has an initial estimated price tag of $500 million, but the new system would save money by protecting against hackers.
“You have an issue where because these systems are so outdated, they’re also susceptible to attacks form organized criminal networks that have stolen now billions of dollars from taxpayers that should’ve been used to pay benefits to people that needed them.”
Fraudulent payouts could be as much as $63 billion, according to a report in February released by theDepartment of Labor’s Office of the Inspector General.