Congressional Bill Vote For Kentucky Labor Union and Business Financial Stimulus

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IN THE HOUSE OF REPRESENTATIVES 

August 22 2025

We introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. 

  A BILL

To establish a financial program to provide grants to labor unions and businesses in the State of Kentucky to rebuild the economy affected by unemployment insurance fraud, and for other purposes.   Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,  

SECTION 1.

SHORT TITLE. 

This Act may be cited as the "Kentucky Economic Recovery from Fraud Act of 2025".  

SECTION 2.

FINDINGS.  

Congress finds the following:   (1) The State of Kentucky has experienced significant unemployment insurance fraud, particularly during the COVID-19 pandemic, resulting in tens of millions of dollars in improper payments and straining state resources.   (2) This fraud has delayed legitimate claims, eroded public trust in the unemployment system, and hindered economic recovery for workers and businesses in Kentucky.   (3) Labor unions and businesses play a critical role in workforce development, job creation, and economic stabilization in Kentucky.   (4) Federal funding is necessary to support collaborative efforts between labor unions and businesses to address the aftermath of financial fraud, modernize systems, and promote equitable economic rebuilding.   (5) Investing in such programs will help mitigate barriers to federal aid, reduce poverty in rural areas, and accelerate recovery from economic disruptions.  

SECTION 3.

PURPOSE.  

The purpose of this Act is to establish a grant program administered by the Secretary of Labor to provide financial assistance to labor unions and businesses in Kentucky for activities aimed at rebuilding the state's economy from the impacts of unemployment insurance fraud.  

SECTION 4.

DEFINITIONS.  

In this Act:   (1) The term "business" means any private entity, including small businesses, corporations, and nonprofits, operating in Kentucky and engaged in economic activities affected by unemployment fraud.   (2) The term "labor union" means any organization representing workers in Kentucky that is certified under the National Labor Relations Act or equivalent state laws.   (3) The term "Secretary" means the Secretary of Labor.   (4) The term "unemployment insurance fraud" includes identity theft, falsified claims, and other improper payments under Kentucky's unemployment insurance system.  

SECTION 5.

KENTUCKY ECONOMIC RECOVERY GRANT PROGRAM.

(a) ESTABLISHMENT.—The Secretary shall establish a grant program to award funds to eligible labor unions and businesses in Kentucky for eligible activities.   (b) ELIGIBLE ACTIVITIES.—Grants awarded under this section may be used for—   (1) workforce training and retraining programs to address skills gaps resulting from economic disruptions caused by fraud;   (2) fraud prevention and detection initiatives, including technology upgrades and employee training;   (3) business expansion or stabilization projects, such as hiring incentives, supply chain improvements, and infrastructure investments;   (4) collaborative projects between labor unions and businesses to promote fair labor practices and economic equity;   (5) community outreach and support services for workers affected by fraud, including legal aid for identity theft victims; and   (6) other activities determined by the Secretary to support economic rebuilding from unemployment fraud.   (c) APPLICATION AND AWARD PROCESS.—   (1) Applications shall be submitted to the Secretary in such form and containing such information as the Secretary may require.   (2) Priority shall be given to joint applications from labor unions and businesses demonstrating collaborative efforts.   (3) Grants shall be awarded on a competitive basis, with consideration for geographic diversity within Kentucky, impact on underserved communities, and potential for long-term economic benefits.   (d) FUNDING ALLOCATION.—Of the amounts appropriated under section 6—   (1) not less than 40 percent shall be allocated to labor unions;   (2) not less than 40 percent shall be allocated to businesses; and   (3) the remaining amount may be allocated flexibly or used for administrative costs not exceeding 5 percent.   (e) REPORTING AND OVERSIGHT.—   (1) Grant recipients shall submit annual reports to the Secretary on the use of funds and outcomes achieved.   (2) The Secretary shall submit an annual report to Congress on the program's effectiveness, including metrics on job creation, fraud reduction, and economic impact.  

SECTION 6.

AUTHORIZATION OF APPROPRIATIONS. 

 There is authorized to be appropriated to carry out this Act $500,000,000 for fiscal year 2026, to remain available until expended.   SECTION 7. EFFECTIVE DATE.   This Act shall take effect on the date of enactment.