Nik Rajkovic / news@whmi.com

Howell state Rep. Jason Woolford says his Oversight Subcommittee on state and local assistance programs found Michigan taxpayers shelled out $40 billion in unemployment claims during COVID.

Of that, he told WHMI News, $10.2 billion was paid to some younger than 15-years-old, some over the age of 80, and even some who were incarcerated.

"Why did it happen? Because we had a Democratic governor and her administration that had been given a rule from the federal government, that on that website where people would go and apply for these benefits, they would need a 'fraud detection button' on that. Well, because it didn't say it needed to be turned 'on' or 'off,' the governor and her administration put it on, but didn't turn it 'on.' They turned it 'off.' And they turned it 'off' so that 'we could pay people faster,'" said Woolford.

Woolford said the investigation also revealed UIA, LEO employees and contractors received unemployment benefits while they were working.

"This was brought to Attorney General (Dana) Nessel, and what did she do? She said we are not going to prosecute because each individual case is not over $20,000. Can you imagine what those that are listening could do with an extra $20,000 that wasn't stolen from them as taxpayers?"

The findings also uncovered what Woolford describes as favoritism.

"The company Deloitte was hired by UIA and the governor's administration to come in and build a $55 million website, to modernize it for UIA," he said. "There was a company Civilla that received more than $5 million for work, and would you know, the former director Julia Dale, of UIA, negotiated this contract with Civilla. Then she left and become the CEO of that company."

Woolford's subcommittee put forth an eight-bill package, he says will improve accountability, service, and agency operations, ensuring the system works for Michigan workers and taxpayers, not against them.

"Some of our folks that received unemployment correctly, or got overpaid, they're coming back and saying they're going to have to pay this back. Not only pay it back, pay it back with interest and penalties. One of those bills is erasing that interest in penalties for those who were doing the right thing," he said.

Woolford said many of these reforms are now included in Michigan's FY 2027 budget:

• HB 4746: Upgrades Michigan's Bridge Cards with chip-enabled technology to help prevent card cloning, benefit theft, and fraud.

• Requiring applicants to verify their identity, income, and Michigan residency before receiving taxpayer-funded benefits.

• Mandating stronger eligibility verification through federal databases and interstate cross-checks to help identify duplicate enrollments and improper payments.

• My Oversight on State and Local Assistance Programs Committee helped drive reforms now included in the budget, strengthening accountability, improving program integrity, and ensuring taxpayer dollars are directed to those who truly qualify.

"These reforms are about more than saving a few pennies. They are about restoring trust in government, protecting the integrity of our public assistance programs, and ensuring taxpayer dollars are used responsibly and effectively," he said.

Video from Woolford during the subcommittee's meeting is linked below.