SB 1950 – Unemployment Fraud

SB 1950 tightens the rules for collecting unemployment benefits in Texas by ensuring that recipients are genuinely looking for work and not exploiting the system. It requires job seekers to prove they are actively applying for jobs, attending interviews, or improving their skills each week. To combat fraud, the Texas Workforce Commission must now verify identities and cross-check claims with multiple government databases. Those who are caught lying or gaming the system face penalties. Although the state will spend over $2.7 million to upgrade technology and staffing, the legislation is projected to save taxpayers over $222 million annually going forward. This bill protects the unemployment system from abuse, prioritizes accountability, reduces waste, and reinforces the principle that benefits are a safety net, not a long-term substitute for work.