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In This Issue

Key Developments

White House Releases Plan to Address COVID-19 Pandemic-Related Fraud 

In response to the growing concerns raised by congressional lawmakers on the government’s response to the widespread stealing of COVID-19 relief funds by organized-cyber criminals, President Biden released an ambitious $1.6 billion legislative proposal that would add more resources to law enforcement, invest in enhanced identity theft prevention to protect public benefits, and help victims of identity theft. The White House released a fact sheet that details what it is calling an “historic Pandemic-Anti-Fraud proposal.”
 

Congressional Hearings Look at Pandemic Fraud including UI 

The House Government Accountability and Oversight Committee and the House Ways and Means Committee held February hearings to look at how much COVID-19 relief money was lost from fraudulent activity. Both committees probed the unemployment insurance (UI) system’s performance during the pandemic related to preventing fraud. 

House Bill Would Eliminate DOL Funding to Modernize UI 

Federal Focus

DOL Hires New Advisor for UI 

Andrew Stettner is the new deputy director of policy for the Office of Unemployment Insurance Modernization (OUIM), helping guide the $2 billion congressional appropriation to fix the technology failures exposed during the height of the COVID-19 pandemic. In an interview with Bloomberg Law, Stettner explained his work is focused on payment accuracy, timeliness, fraud prevention, and equity. Previously, Stettner was a senior fellow at The Century Foundation where he worked on UI and earned a reputation as one the country’s leading UI experts. He was also an original member of the Unemployment Insurance Technology Coordinating Coalition. Stettner replaces Michele Evermore who had the role for two years and helped stand up the OUIM.

Plain Language Usage Important for UI Accessibility 

The DOL researched the accessibility of claimant-facing information platforms in all 50 states and three territories to assess how well those platforms used plain language in their requests for information. They found that a user would have to look for a glossary to learn the meaning of words and, in some instances, it would require multiple clicks and scrolls on a website to find definitions. The DOL also found that the provided definitions were written for subject matter experts and not in plain language. The recommendations from the report included reducing the use of legal jargon, writing at an eighth grade level or below, and increased use of visual aids.
 

DOL Releases Claim Status Playbook and Example

One of the most common questions from UI claimants into state workforce and labor agencies is "what is the status of my claim?" This question can overwhelm contact centers which in turn can slow claims’ processing. DOL released a playbook on how agencies can develop a tracker for claimants to see in real time the status of their claim. It is like a "pizza tracker," but for unemployment insurance. The playbook also includes a prototype tracker example to make it easier for state agencies to implement.

Congress Increases Funding for UI Administration 

For the first time in a long time, the recently passed omnibus funding package includes additional resources to support the operation of the UI program. The omnibus provides $3.134 billion for operation of the UI program, an increase of $284 million (see page 2 in the linked report) from 2022 and also includes contingency funding to help states if there is a spike in unemployment claims. For every 100,000 increase in the total average weekly insured unemployment (AWIU) above 1,778,000, an additional $28.6 million will be made available to states from the Unemployment Trust Fund (including a pro rata amount for any increment less than 100,000).

GAO Issues New Report Calling on DOL to Implement Anti-Fraud Measures 

While DOL has taken steps to mitigate fraud in the UI system, the agency still has not created an anti-fraud framework guided by GAO’s Fraud Risk Framework, according to a December report. In June of 2022, GAO added UI to its High-Risk list, the list of federal programs GAO maintains to “identify and help resolve serious weaknesses in areas that involve substantial resources and provide critical services to the public.” DOL responded to the report (available as an Appendix in the linked report) and agreed with some recommendations and plans to address shortcomings cited by GAO.

Feds Updating Digital Identity Standards and Seeking Public Comment 

The National Institute on Standards and Technology (NIST) is updating its digital identity guidelines, 800-63, in order to address the growing challenges related to conducting effective online identity verification. The draft guidelines include significant changes to requirements for digital identity management, identity proofing, and authentication. NIST is also guided by several core design principles like advancing equity, increased choice, and lessons learned from real world scenarios. The guidelines become mandatory for federal agencies and greatly influence private sector company adoptions. They are not requirements for states. Public comments can be submitted to dig-comments@nist.gov until March 24, 2023 (include 800-63 in the subject line).

State Spotlight

States Continue to Struggle with Pandemic Backlogs

In many states, the intense burdens on UI systems caused by the COVID-19 pandemic continue to cause difficulties for beneficiaries and for staff at the employment agencies. In Washington, while weekly new jobless claims are below their pre-pandemic levels, the time for those benefits to be paid stretches on and getting answers from the agency is a “surrealistic nightmare” according to one claimant. Too many who received benefits during the pandemic are being pursued for overpayments even though most of those cases do not include assertions of fraud by the beneficiary. In Virginia, there remained a backlog of more than 90,000 appeals in February. In Nevada, the backlog of 32,000 cases (without distinguishing unresolved initial claims or appeals of adverse decisions) would normally take four years to resolve and is resulting in a planned hiring of an outside contractor to resolve the backlog faster.

Improvements to UI Benefits Delivery

New Jersey’s service improvements, including a mobile-responsive, plain-language application, have reduced the time to complete an initial UI application by 47 minutes and email communications to claimants have been revamped for clarity. Kansas is undertaking its next UI modernization effort in more than a decade with $4.5 million in funding from DOL for improved self service, data access, and claims processing. Georgia’s labor department has deployed a cloud-based customer service automated phone system and website virtual assistant—the George AI chatbot—to assist those seeking unemployment services. Callers can now access services from a single phone number, and through the use of AI technology, provides numerous prompts to address inquiries. More than 64,00 people have used the AI chatbot on the state’s department of labor website, accurately identifying requests with a 99 percent success rate. Wisconsin is publicly sharing updates on their UI modernization project, with a recent update on developing their benefits calculation engine through staff testing with sample data. 

Michigan Announces New Stakeholder Workgroup to Advise the UI Agency

Michigan’s Unemployment Insurance Agency (UIA) announced the formation of a stakeholder advisory group to advise the agency on modernization efforts to improve service delivery to benefit beneficiaries. The four announced priorities of the workgroup are setting modernization goals, understanding users’ experiences and needs, supporting Michigan workers and economy, and stabilizing the Trust Fund. UIA Director Juli Dale also cited improving timeliness and equity as a key part of her partnership with the workgroup. Additionally, UIA is working with non-profit design organization, Civilla, on a one year project to redesign the way Michigan residents access and manage UI benefits. 

Community Corner

Beeck Center Announces $11 Million in New Funding

Beeck Center and the Digital Benefits Network announced $11 million in new funding from the Bill & Melinda Gates Foundation, The Families And Workers Fund, The Ford Foundation and The Beeck Family— to align, convene, and leverage civic tech networks to make public benefits systems work better for everyone. With this new support the Digital Benefits Network is scaling our communities of practice, including the UI Technology Coordinating Coalition, producing more resources and documenting best practices, expanding the Digital Benefits Hub, and most of all, continuing on the path towards equitable, human-centered, data-driven delivery of public benefits and digital government services. See coverage in GovTech and StateScoop. 
 

Michele Evermore Reflects on Her Time at Labor Department 

In a Q&A with FCW, Michele Evermore, former deputy director of policy at the Office of Unemployment Insurance Modernization explains the UI system is not ready for the next recession, the challenges of reforming the UI post pandemic and how modernization needs to happen the right way to improve benefit delivery. Evermore now works at the Century Foundation (TCF). 

New Dataset Available on Digital Authentication and Identity Proofing in UI Applications

In late February, the Digital Benefits Network (DBN) published a new, open dataset documenting authentication and identity proofing requirements across UI applications in the 53 states and territories that administer the program.The companion brief provides analysis on when authentication and proofing are included in the process, which vendors, and what types of proofing are required. The DBN team built this dataset using publicly available information, and they are eager to receive feedback to help ensure accuracy, fill in gaps, and identify ways to extend this research.

Nearly 40 Percent of Applicants Found the UI Application Process Confusing and Unfriendly

The Urban Institute, in a study that examined the customer service experience across a wide range of benefits programs, found that UI beneficiaries faced the second highest level of difficulty dealing with labor agencies to access UI benefits among the programs examined. They also found that more than four in 10 applicants faced difficulties with the application process. The authors recommend simplifying the application process for these benefit programs and considering creating incentives for families in need to apply.

Century Foundation Submits UI Testimony to House Committee 

TCF senior fellow Michele Evermore and fellow Laura Valle Gutierrez—who are also UI Tech Coalition members—submitted a written statement for the record to the House Ways and Means Committee for a hearing on February 8, 2023, regarding unemployment fraud. Their statement describes how the under resourcing of the unemployment system opens the window for people seeking to defraud the government or steal benefits directly from taxpayers.
 

Better Identity Coalition Event Featuring Recommendations for Improved Identity Proofing

During an event (video) sponsored by the Better Identity Coalition, the Coalition released a blueprint for states looking to improve their identity proofing. The recommendations suggest states accelerate the transition to mobile drivers licenses and state IDs and to put departments of motor vehicles at the center of an identity infrastructure in the state. Important to equity in this space, the recommendations recognize that no solution will address the needs of all users and that states should maintain multiple authentication pathways. During a session moderated by Elizabeth Bynum Sorrell, researcher at the Beeck Center’s Digital Benefits Network, discussed questions of algorithmic bias and those who face problems with access due to digital literacy, lack of internet access, and common life changes (e.g., name or address changes).

UI Memo for New State Governments’ First 200 Days in Office

In the memo, the Tech Talent Project, New America, and the Beeck Center provided recommendations for ways state governments can improve UI administration in the current legislative cycle. With many states swearing in new governors or seeing a change in control in the statehouse at the start of 2023, there is an opportunity to make changes that will improve administration, equity, and timeliness while preparing state UI systems for the next crisis by building capacity to avoid backlogs when that crisis hits. Recommendations also focus on doing a full cost-benefit analysis of identity proofing solutions, focusing on measurable improvements with an emphasis on user experience.

Community Legal Services of Philadelphia Offers UI Suggestions to PA’s New Governor

After experiencing extensive backlogs during the pandemic and following a major update to the technology system for UI in Pennsylvania rolled out in 2021, applicants and beneficiaries are still finding the UI system difficult to navigate. Community Legal Services of Philadelphia offered several recommendations to the Shapiro administration to improve the UI system. These included focusing on ways to make the technology for UI work for beneficiaries, improve communication from the agency, and change the way overpayments are handled.

UCLA Study Highlights Benefits of UI Aid During the Pandemic 

Unemployed workers relied upon UI at historic levels for income support during the height of the COVID-19 crisis, according to research conducted by the University of California Los Angeles Policy Lab. The report explained that expansion of UI eased the financial burdens felt by suddenly unemployed workers and their families. The federal expansion included increased benefit amounts, eligibility and period of benefits. The report also noted that UI expansion did not incentivize people to not work.

Contact

Reach our team at uitechconveners@georgetown.edu 

We look forward to hearing from you, 

Adam Bobrow and Marcus Courtney, Conveners of the UI Tech Coordinating Coalition
Ariel Kennan, Fellow, Digital Benefits Network
Shanelle Roberson, Community Manager, Digital Benefits Network
Oriel Gomez, Student Analyst, Digital Benefits Network
The Beeck Center for Social Impact + Innovation at Georgetown University

About the Coalition

The Unemployment Insurance Technology Coordinating Coalition is a community of practice of the Digital Benefits Network of the Beeck Center for Social Impact + Innovation at Georgetown University that engages cross-sector practitioners, including states, legal advocates, labor unions, technologists, think tanks, and other nonprofits through bi-weekly calls, annual convenings, closed-door sessions, research, and technical assistance in order to improve the technology delivery of the UI system.

Our Mission: Advance technological solutions at the federal and state levels with coordination between the two to ensure all eligible unemployed workers—and especially those from BIPOC groups that have historically been excluded from UI—receive their benefits on time.

Our Goal: Coordinate national experts and key state partners who are offering solutions of improved service delivery through new technology to offer coordinated solutions.