Senator Jon Husted (R-Ohio) has introduced the Clawing back Lapsed Obligations from State Emergency programs (CLOSE) Act, a bill aimed at cancelling unspent tax dollars that were allocated for emergency unemployment payments during the COVID-19 pandemic and terminating the related program.
The legislation is co-sponsored by Senator Bill Cassidy (R-La.), chairman of the Senate Committee on Health, Education, Labor and Pensions. In the U.S. House of Representatives, Representative Max Miller (R-Ohio) has introduced a companion bill to support this initiative.
“Ohio’s private sector completely recovered all the jobs that were lost during the COVID-19 pandemic in just two years, and jobs have only continued to grow since then. Aimlessly and unnecessarily dispersing nearly $1 billion would be a fraudster’s paradise. We need to continue focusing on fiscal responsibility and protecting hard-earned taxpayer dollars,” said Husted.
“In 2020, Congress acted quickly to help Americans who lost their jobs, but trying to distribute these funds seven years later is not relief, it’s an invitation for fraud. The CLOSE Act protects taxpayers, closes the door on waste and abuse, and brings a responsible end to emergency programs that have already served their purpose,” said Miller.
The CARES Act was enacted in 2020 to provide emergency unemployment assistance during the pandemic. Ohio was among 24 states that chose not to continue distributing these funds after officials determined they discouraged people from returning to work. At that time, Husted was serving as Ohio’s Lieutenant Governor and advocated for ending these programs.
Despite the official end of the COVID emergency, funding for these programs remains available. According to lawmakers supporting the CLOSE Act, many individuals who initially applied for aid have since moved away from their states of residence, passed away or provided inaccurate information—raising concerns about potential misuse if funds are distributed now.
Programs targeted by this bill include Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earner Unemployment Compensation and Pandemic Emergency Unemployment Compensation.
The full text of the bill can be accessed here.
