Congressman Steven Horsford Examines the Need for Federal Investments to Modernize Information Technology Systems

Washington, D.C. -- Today, Congressman Steven Horsford took part in a virtual House Budget Committee hearing to examine the shortcomings of current government information technology (IT) systems during the COVID-19 pandemic and explore the need for federal investments in modernized technology to better serve the American people.

"It is alarming that months after a global pandemic struck our nation, many Nevadans have not yet received the financial relief Congress promised to our workers, families, and businesses," said Congressman Steven Horsford. "Outdated and overwhelmed technology systems have made it difficult for families to bear the economic burden of this pandemic. I urge my colleagues in the House to support investment in new, modern technology solutions to give Americans better access to the most updated information, services, resources, and benefits."

In March of this year, Congressman Horsford introduced and passed H.R. 6199, the ‘Emergency Unemployment Insurance Stabilization and Access Act of 2020' which provided funds for states to increase staffing, update IT systems, and help process mass numbers of unemployment insurance claims. H.R. 6199 was signed into law as a part of the Families First Coronavirus Response Act.

Video of the Congressman's testimony can be watched and downloaded here.

The Congressman's remarks and line of questioning are available below:

Thank you, Mr. Chairman for holding this hearing today.

Since February 2020, more than one in four Nevada workers have lost their jobs statewide, pushing the State's unemployment rate to 30.1 percent.

That is the highest level ever reported by any state in modern history and generating an unemployment insurance caseload orders-of-magnitude higher than anything the State has witnessed previously.

I have hosted several tele-town halls during the course of this pandemic, in which so many of my constituents expressed their frustrations about how difficult it has been for them to navigate the unemployment system.

From website crashes to waiting several hours on the phone before getting a response to having trouble resetting their passwords.

The Families First Coronavirus Response Act that was signed into law back in March included provisions from my bill, H.R. 6199, the "Emergency Unemployment Insurance Stabilization and Access Act of 2020"—which provided $1 billion in grants to state unemployment offices.

Nevada received a little over $10 million.

Those grants have been used to increase staffing, update information technology systems, and process the onslaught of unemployment insurance claims that have been coming in.

When we provided that $1 billion to states, I do not think we realized how difficult it would be for state UI offices to produce on such an outdated technology system.

My staff and I have had numerous calls with Nevada's state unemployment office about the issues and I know that Nevada is not alone.

Question: Ms. Gerton, Ms. Pahlka, and Ms. Dixon - Can either of you explain why states struggled to update their unemployment forms and payment systems for the Federal Pandemic Unemployment Compensation? I am particularly interested to know the various steps unemployment offices had to take to upgrade their systems with the Department of Labor.

Your testimony pointed out that the national administrative funding of UI systems is essentially unchanged from almost 20 years ago. My question is what could the states have been able to do without the Department of Labor to set those standards and even to recommend the types of systems that should have been put in place?

It's extremely frustrating, especially for the gig workers, independent contractors, the employers, when the companies that they work for can't even submit verification. I loved the idea of establishing a nationwide verification system -- something like e-verify for companies that are national or multinational in order to verify the wages that were paid to those employees. That is the biggest issue that we're facing here in Nevada.

There's been no guidance provided by the Department of Labor, or little guidance. There's no recommendation for the types of systems that actually work. So we have a piecemeal approach in 50 different states and it's all outdated, it's all antiquated, yet Congress appropriated a billion dollars.

We need to move this forward and create solutions now while we address the systemic issues.

Under the Department of Agriculture, children and families that are eligible for SNAP or free and reduced meals based on their income eligibility, that information is not shared with the Department of Education in order for them to get free internet service. That is contributing to the digital divide. It's something that Congress can fix. It's something that through guidance from our federal agencies, we can address and I hope my colleagues will work with us to improve that for our children and families right now during this pandemic.