Michigan lawmakers question UIA's handling of pandemic unemployment benefits audit

The Michigan Legislature held a meeting on June 5, 2025, focusing on oversight of state and local public assistance programs, particularly the Unemployment Insurance Agency (UIA) and its handling of benefits during the pandemic. Key discussions centered around the significant findings from recent audits, which revealed that approximately 25% of the $40 billion in unemployment benefits paid out may have been fraudulent or improperly issued.

Representatives expressed concern over the UIA's procedures, noting that employees of the agency received benefits during the same period they were processing claims. This raised questions about the integrity of the system and the effectiveness of oversight measures. The meeting highlighted that the requirement for claimants to actively seek employment was waived for a time, contributing to the extended duration of benefits and potential misuse.

A notable point of contention was the UIA's disagreement with audit findings that established procedures were bypassed. Legislators questioned how such a stance could be maintained in light of the evidence presented. The discussion also touched on the slow reinstatement of work search requirements, which was delayed by about seven months, further complicating the situation.

Representatives criticized the UIA for not taking more decisive action to recover fraudulent payments, despite being aware of the issues since reports were issued in late 2023. The agency reportedly recouped only a small fraction of the funds, raising alarms about the lack of urgency in addressing the findings.

The meeting concluded with a call for accountability and a more proactive approach to managing public assistance programs, emphasizing the need for improved oversight to prevent similar issues in the future. The discussions underscored the ongoing challenges faced by the UIA and the importance of ensuring that public funds are managed effectively and responsibly.