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January 21, 2026
Funding the Administration of Unemployment Benefits: Overview and Reforms to Improve Efficiency and Program Integrity
Executive Summary: The COVID-19 pandemic exposed significant flaws in the nation’s unemployment insurance (UI) system, which resulted in the improper payment of at least $191 billion—and potentially upwards of $400 billion—in taxpayer funds. The direct causes of those extensive losses included the poor design of temporary federal benefit programs, which opened the door to abuse,…