Loophole Allows People to Receive Disability and Unemployment at the Same Time

By Melanie Arter | April 13, 2016 | 11:29am EDT
(AP Photo)

(CNSNews.com) – The Government Accountability Office’s (GAO) comptroller general testified at a House Oversight and Government Reform Committee hearing Wednesday that the federal government can save over $1 billion over a few years if it closes a loophole that allows people who receive disability benefits to also receive unemployment benefits at the same time.

“You mentioned potentially saving billions on the Social Security disability payments. Will you tell us about what needs to be done in that area?” Rep. John Duncan (R-Tenn.) asked GAO Comptroller General Gene Dodaro.


“Yes, right now, people can receive full disability benefits and unemployment benefits at same time,” Dodaro testified at the hearing on government waste and inefficiency.



He explained that if someone is on disability, they can receive permission to try to work, “because obviously, we want them to get back to work.”

However, he said, “if they take a job, and then they’re eventually laid off from that position, they can collect both benefits, and we don’t think that this is a prudent use of the federal government’s money to get both full disability benefits and unemployment benefits at the same time.”

“CBO’s estimated, I believe they could save about $1.3 billion over a few year period if this change is made,” Dodaro said.

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