Senator Ernst Proposes Bill to Block Unemployment Benefits for Billionaires

Republican Senator Joni Ernst from Iowa has put forth a new bill aimed at stopping billionaires from receiving unemployment benefits, an issue that gained attention during President Joe Biden’s administration.

The proposed legislation, known as the Unemployment Billionaire Act, outlines that state unemployment agencies must verify all available income data before approving any benefits. Moreover, the Department of Labor would have the authority to double-check this information and confirm the applicant’s financial status.

“A healthy billionaire should not be expecting handouts funded by hardworking Americans,” Senator Ernst stated in her announcement regarding the bill. She added, “The days of the freeloading fat cats are over.”

According to research mentioned in a memo sent to Ernst, many billionaires have benefitted from unemployment aid in recent years, despite generally having substantial financial resources. In fact, between 2021 and 2022, over 20,000 individuals earning more than $1 million received unemployment benefits that totaled over $270 million. It averages out to more than $10,000 for each individual.

Unemployment Insurance is a federal-state program designed to assist workers who lose their jobs through circumstances beyond their control. It’s funded via employer payroll taxes and is managed by individual states, adhering to federal guidelines. However, a Labor Department rule currently restricts states from denying benefits solely based on income, which allows wealthy individuals to access benefits intended for those in financial need.

This isn’t the only assistance program subject to exploitation. A few years back, billionaires in Minnesota highlighted how even those with substantial wealth could easily access welfare benefits. For instance, retired engineer Rob Underunder applied for food stamps and openly shared his experience with caseworkers in 2019, which raised eyebrows at the Foundation for Economic Education.

“I asked him to find reasons to reject the food stamp application,” he remarked at that time.

Just three weeks later, he received his benefits in the mail.