Unemployment Insurance: Legislative Issues in the 117th Congress, First Session

Changes from August 24, 2021 to February 15, 2022

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Unemployment Insurance: Legislative Issues in ~~August 24, 2021~~February 15, 2022
the 117th Congress, First Session
Katelin P. Isaacs
The Unemployment Insurance (UI) system is a joint federal-state partnership. The U.S. The Unemployment Insurance (UI) system is a joint federal-state partnership. The U.S.
Specialist in Income Specialist in Income
Department of Labor (DOL) provides oversight of state Unemployment Compensation (UC) Department of Labor (DOL) provides oversight of state Unemployment Compensation (UC)
Security Security
programs and the state administration of federal UI benefits. Although there are broad programs and the state administration of federal UI benefits. Although there are broad

requirements under federal law regarding UC benefits and financing, the specifics are set out requirements under federal law regarding UC benefits and financing, the specifics are set out
Julie M. Whittaker under each state’s laws, resulting in 53 different UC programs operated in the 50 states, the under each state’s laws, resulting in 53 different UC programs operated in the 50 states, the
~~Julie M. Whittaker~~
Specialist in Income Specialist in Income
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. States operate their own UC District of Columbia, Puerto Rico, and the U.S. Virgin Islands. States operate their own UC
Security Security
programs and administer any temporary, federal UI benefits. State UC programs determine the programs and administer any temporary, federal UI benefits. State UC programs determine the

weekly benefit amount and the number of weeks of UC available to unemployed workers. Most weekly benefit amount and the number of weeks of UC available to unemployed workers. Most
states provide up to 26 weeks of UC to eligible individuals who become involuntarily states provide up to 26 weeks of UC to eligible individuals who become involuntarily

unemployed for economic reasons and meet state-established eligibility rules. unemployed for economic reasons and meet state-established eligibility rules.
The UI system’s two main objectives are to provide temporary and partial wage replacement to involuntarily unemployed The UI system’s two main objectives are to provide temporary and partial wage replacement to involuntarily unemployed
workers and to stabilize the economy during recessions (i.e., by providing income support to unemployed workers, who workers and to stabilize the economy during recessions (i.e., by providing income support to unemployed workers, who
spend this income, maintaining a certain level of economic activity). The UC program, created under the Social Security Act spend this income, maintaining a certain level of economic activity). The UC program, created under the Social Security Act
of 1935, provides unemployment benefits to eligible individuals who become involuntarily unemployed for economic of 1935, provides unemployment benefits to eligible individuals who become involuntarily unemployed for economic
reasons and meet state-established eligibility rules. Augmenting the regular UC program, federal law includes an automatic reasons and meet state-established eligibility rules. Augmenting the regular UC program, federal law includes an automatic
expansion of the regular UC benefit with the Extended expansion of the regular UC benefit with the Extended ~~Ben efit~~Benefit (EB) program established by the Federal-State Extended (EB) program established by the Federal-State Extended
Unemployment Compensation Act of 1970 (EUCA; P.L. 91-373).Unemployment Compensation Act of 1970 (EUCA; P.L. 91-373). EB may provide up to an additional 13 or 20 weeks of EB may provide up to an additional 13 or 20 weeks of
benefits once regular UC benefits are exhausted, depending on worker eligibility, benefits once regular UC benefits are exhausted, depending on worker eligibility, ~~st ate~~state law, additional federal eligibility law, additional federal eligibility
requirements, and economic conditions in the state. requirements, and economic conditions in the state.
In response to the recent recession caused by the COVID-19 pandemic, Congress created several temporary In response to the recent recession caused by the COVID-19 pandemic, Congress created several temporary ~~programs~~
, now-expired programs through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136; enacted March 27, 2020):through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136; enacted March 27, 2020):
 Pandemic Unemployment Assistance (PUA),  Pandemic Unemployment Assistance (PUA),
 Pandemic Emergency Unemployment Compensation (PEUC), and  Pandemic Emergency Unemployment Compensation (PEUC), and
 Federal Pandemic Unemployment Compensation (FPUC).  Federal Pandemic Unemployment Compensation (FPUC).
The Consolidated Appropriations Act, 2021 (also known as the Continued Assistance for Unemployed Workers Act of 2020, The Consolidated Appropriations Act, 2021 (also known as the Continued Assistance for Unemployed Workers Act of 2020,
or the Continued Assistance Act; P.L. 116-260;or the Continued Assistance Act; P.L. 116-260; enacted December 27, 2020),enacted December 27, 2020), extended the authorization of these programs extended the authorization of these programs
and created Mixed Earner Unemployment Compensation (MEUC). Congress also provided states with more flexibility to and created Mixed Earner Unemployment Compensation (MEUC). Congress also provided states with more flexibility to
address COVID-19-related unemployment through expanded benefit eligibility, additional administrative funding, and other address COVID-19-related unemployment through expanded benefit eligibility, additional administrative funding, and other
temporary UI measures enacted under the Families First Coronavirus Response Act (FFCRA;temporary UI measures enacted under the Families First Coronavirus Response Act (FFCRA; P.L. 116-127,P.L. 116-127, enacted March enacted March
18, 2020). 18, 2020).
In the In the first session of the 117th Congress, the UI provisions in Title IX, Subtitle A, of the American Rescue Plan Act of 2021 (ARPA;117th Congress, the UI provisions in Title IX, Subtitle A, of the American Rescue Plan Act of 2021 (ARPA; P.L. 117-P.L. 117-
2; enacted March 11, 2021) 2; enacted March 11, 2021) ~~make~~made four significant changes to UI programs and benefits: four significant changes to UI programs and benefits:
1. They They ~~reauthorize and expand~~reauthorized and expanded the enhanced UI benefits created under the CARES Act and the Continued the enhanced UI benefits created under the CARES Act and the Continued ~~Assistance~~
Assistance Act through September 4, 2021; Act through September 4, 2021;
2. They They ~~extend~~extended the authorization for additional, temporary UI provisions first authorized under the CARES the authorization for additional, temporary UI provisions first authorized under the CARES Act and Act and
FFCRA and subsequently extended under the Continued Assistance Act; FFCRA and subsequently extended under the Continued Assistance Act;
3. They They ~~authorize~~authorized a federal income tax exclusion of up to $10,200 in UI benefits in 2020 for taxpayers with a federal income tax exclusion of up to $10,200 in UI benefits in 2020 for taxpayers with ~~modified~~
modified adjusted gross income (AGI) of less than $150,000; and adjusted gross income (AGI) of less than $150,000; and
4. They They ~~provide~~provided two sources of additional UI administrative funding: (1) $2 billion to DOL for federal and two sources of additional UI administrative funding: (1) $2 billion to DOL for federal and ~~state~~
state administration of UI benefits, including for fraud prevention and benefit processing purposes; and (2) $8 million to administration of UI benefits, including for fraud prevention and benefit processing purposes; and (2) $8 million to
DOL for federal activities related to UI programs. DOL for federal activities related to UI programs.
Congressional Research Service Unemployment Insurance: Legislative Issues in the 117th Congress, First Session All temporary UI measures enacted in response to the COVID-19 pandemic expired at the beginning of September 2021. When authorized, FPUC, PEUC, PUA, and MEUC were~~FPUC, PEUC, PUA, and MEUC are~~ all payable through voluntary agreements between DOL and states. Each agreement all payable through voluntary agreements between DOL and states. Each agreement
~~requires~~required that the state administer the benefits. All states agreed to administer FPUC, PEUC, and PUA, and all but two states that the state administer the benefits. All states agreed to administer FPUC, PEUC, and PUA, and all but two states
(Idaho and South Dakota) agreed to administer MEUC. However, 26 (Idaho and South Dakota) agreed to administer MEUC. However, 26 ~~of the~~ states announced terminations states announced terminations toof some some or all of ~~or all of~~
~~Congressional Research Service~~

~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

their agreements to pay COVID-19 UI benefits prior to the end of the federal authorization of the programs. their agreements to pay COVID-19 UI benefits prior to the end of the federal authorization of the programs. ~~Since then,~~ (DOL DOL
reported that state courts in Indiana and Maryland reported that state courts in Indiana and Maryland ~~have~~ issued temporary orders prohibiting early termination from some or issued temporary orders prohibiting early termination from some or
all of the COVID-19all of the COVID-19 UI programs. UI programs. (Additional legal challenges have been reported in other states but at this time do not Additional legal challenges have been reported in other states but at this time do not
appear to have reestablished participation.)appear to have reestablished participation.)
~~With continued unemployment due to the COVID-19 recession, the 117th Congress may continue to consider additional UI~~
~~measures. For example, Congress may further extend or expand the enhanced UI measures enacted under FFCRA and the~~
~~CARES Act.~~
~~In the 117th Congress, policymakers have introduced~~ In the first session of the 117th Congress, policymakers introduced the following additional legislation that would legislation that would:
~~ provide~~ have  provided relief to taxpayers who receive UI benefits, by excluding up to $10,200 in UI benefit income from relief to taxpayers who receive UI benefits, by excluding up to $10,200 in UI benefit income from
federal income taxation in tax year 2020 (S. 175 and H.R. 685; proposal in these two bills federal income taxation in tax year 2020 (S. 175 and H.R. 685; proposal in these two bills was enacted was enacted
under Section 9042 of ARPA [P.L. 117-2])under Section 9042 of ARPA [P.L. 117-2]) and addressing the situation of victims of identity theft related and addressing the situation of victims of identity theft related
to UI fraud in tax years 2020 and 2021 (H.R. 3170); to UI fraud in tax years 2020 and 2021 (H.R. 3170);
  ~~exempt~~exempted certain types of UI benefits from sequestration (H.R. 2900 and S. 545); certain types of UI benefits from sequestration (H.R. 2900 and S. 545);
  ~~amend~~amended Title III of the Social Security Act to extend Reemployment Services and Eligibility Assessments Title III of the Social Security Act to extend Reemployment Services and Eligibility Assessments
(RESEA) to all UC claimants (RESEA) to all UC claimants (S. 1389,(S. 1389, H.R. 1763,H.R. 1763, H.R. 1868,H.R. 1868, H.R. 2188,H.R. 2188, and H.R. 3154); and H.R. 3154);
  ~~modernize~~modernized state UI systems and state UI systems and ~~implement~~implemented additional program integrity measures (S. 490, additional program integrity measures (S. 490, ~~H.R. 723, and~~
~~H.R. 1458);~~
~~ amend~~S. 2898, H.R. 723, H.R. 1458, and H.R. 6224);  amended federal UI law in various ways in response to COVID-19, including by amending, contracting, or federal UI law in various ways in response to COVID-19, including by amending, contracting, or
expanding UI provisions in FFCRA or the CARES Act (S. 242, S. 1206, expanding UI provisions in FFCRA or the CARES Act (S. 242, S. 1206, S. 1389, S. 1555,S. 1389, S. 1555, S. 1557, S. S. 1557, S.
1699, S. 1712,1699, S. 1712, S. 2358, S. 2358, S. 2742, H.R. 289, H.R. 435, H.R. 805, H.R. 919, H.R. 934, H.R. 1868, H.R. 2188, H.R. H.R. 289, H.R. 435, H.R. 805, H.R. 919, H.R. 934, H.R. 1868, H.R. 2188, H.R.
3104, H.R. 3148, H.R. 3254, H.R. 3266, H.R. 3268, H.R. 3307, H.R. 3316, H.R. 3479, H.R. 3495, H.R. 3104, H.R. 3148, H.R. 3254, H.R. 3266, H.R. 3268, H.R. 3307, H.R. 3316, H.R. 3479, H.R. 3495, H.R.
4013, H.R. 4015, 4013, H.R. 4015, H.R. 4190, H.R. 5285, and H.R. 5363~~and H.R. 4190~~); and ); and
  ~~make~~made changes to permanent-law state UC programs ( changes to permanent-law state UC programs (~~H.R. 594 and H.R. 1620~~S. 2865, H.R. 594, H.R. 1620, and H.R. 5507). ).
For additional details on the temporary For additional details on the temporary, now-expired UI benefits created in response to the COVID-19 recession, see CRS Report R46687, UI benefits created in response to the COVID-19 recession, see CRS Report R46687,
~~Current Status of~~ Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic Response..

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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session

Overview of Unemployment Insurance Programs
The Unemployment Insurance (UI) system is a joint federal-state partnership that provides The Unemployment Insurance (UI) system is a joint federal-state partnership that provides
income support through weekly benefit payments. The UI system’s two main objectives are to income support through weekly benefit payments. The UI system’s two main objectives are to
provide temporary and partial wage replacement to involuntarily unemployed workers and to provide temporary and partial wage replacement to involuntarily unemployed workers and to
stabilize the economy during recessions (i.e., by providing income support to unemployed stabilize the economy during recessions (i.e., by providing income support to unemployed
workers, who spend this income, maintaining a certain level of economic activity).1 The UI workers, who spend this income, maintaining a certain level of economic activity).1 The UI
system consists of two types of benefits: (1) permanently authorized programs such as the system consists of two types of benefits: (1) permanently authorized programs such as the
Unemployment Compensation (UC) and the Extended Benefit (EB) programs and (2) temporary Unemployment Compensation (UC) and the Extended Benefit (EB) programs and (2) temporary
federal UI benefits created by congressional action to supplement the UC and EB programs federal UI benefits created by congressional action to supplement the UC and EB programs
during recessions. during recessions.
The UC program and the UC benefit provide the foundation of the UI system. The UC program, The UC program and the UC benefit provide the foundation of the UI system. The UC program,
created under the Social Security Act of 1935, provides unemployment benefits to eligible created under the Social Security Act of 1935, provides unemployment benefits to eligible
individualsindividuals who become involuntarily unemployed for economic reasons and meet state-who become involuntarily unemployed for economic reasons and meet state-
established eligibilityestablished eligibility rules. Although there are broad requirements under federal law regarding rules. Although there are broad requirements under federal law regarding
UC benefits and financing, the specifics are set out under each state’s laws, resulting in 53 UC benefits and financing, the specifics are set out under each state’s laws, resulting in 53
different UC programs operated in the 50 states, the District of Columbia, Puerto Rico, and the different UC programs operated in the 50 states, the District of Columbia, Puerto Rico, and the
Virgin Islands. The U.S. Department of Labor (DOL) provides oversight of state UC programs Virgin Islands. The U.S. Department of Labor (DOL) provides oversight of state UC programs
and state administration of and state administration of al all UI benefits. States operate their own UC programs and UI benefits. States operate their own UC programs and ~~typical y~~
typically administer any temporary federal UI benefits. Most states provide up to 26 weeks of UC benefits. administer any temporary federal UI benefits. Most states provide up to 26 weeks of UC benefits.
Augmenting the regular UC program’s economic stabilization efforts, federal law includes an Augmenting the regular UC program’s economic stabilization efforts, federal law includes an
automatic expansion of the regular UC benefit with the EB program established by the Federal-automatic expansion of the regular UC benefit with the EB program established by the Federal-
State Extended Unemployment Compensation Act of 1970 (P.L. 91-373). EB may provide up to State Extended Unemployment Compensation Act of 1970 (P.L. 91-373). EB may provide up to
an additionalan additional 13 or 20 weeks of benefits once regular UC benefits are exhausted, depending on 13 or 20 weeks of benefits once regular UC benefits are exhausted, depending on
worker eligibility,worker eligibility, state law, additional federal eligibilitystate law, additional federal eligibility requirements, and economic conditions requirements, and economic conditions
in the state. in the state.
The two permanently authorized UI programs—UC and EB—provide weekly, countercyclical The two permanently authorized UI programs—UC and EB—provide weekly, countercyclical
payments that increase payments that increase ~~automatical y~~automatically during a recession. The intent to provide economic stability during a recession. The intent to provide economic stability
is reflected in the UI system’s funding and benefit structure. During economic expansions, states is reflected in the UI system’s funding and benefit structure. During economic expansions, states
fund approximately 85%-90% of fund approximately 85%-90% of al all UC expenditures, as almost UC expenditures, as almost al all UC benefits are financed by UC benefits are financed by
state unemployment taxes. In comparison, federal UC expenditures are relatively state unemployment taxes. In comparison, federal UC expenditures are relatively ~~smal~~ small during during
these expansions (approximately 10%-15%) and are primarily made to the states via these expansions (approximately 10%-15%) and are primarily made to the states via
administrative grants financed by federal unemployment tax revenue. The federal share of EB administrative grants financed by federal unemployment tax revenue. The federal share of EB
expenditures is 50% under permanent law. Thus, the federal share of UI expenditures (UC+EB) expenditures is 50% under permanent law. Thus, the federal share of UI expenditures (UC+EB)
increases during recessions.2 increases during recessions.2 ~~Additional y~~Additionally, temporary UI programs created during , temporary UI programs created during al all recessions recessions
have been 100% have been 100% ~~federal y~~federally financed, which again increases the federal expenditure share in UI financed, which again increases the federal expenditure share in UI
~~expenditures. For example, in calendar year 2021, approximately 75% of al UI benefits paid out~~
~~were federal y financed.~~

~~1 See,~~ 1 See, for example, President Franklin Roosevelt’s remarks at the signing of the Social Security Actfor example, President Franklin Roosevelt’s remarks at the signing of the Social Security Act on Auguston August 14, 14,
1935: “1935: “ ~~T his~~This law, too, represents a cornerstone in a structure which is law, too, represents a cornerstone in a structure which is ~~being~~ being built but isbuilt but is by no means complete. It is a by no means complete. It is a
structure intended to lessen the force of possible future depressions. It willstructure intended to lessen the force of possible future depressions. It will act as a protection to future Administrations act as a protection to future Administrations
against the necessity of going deeply into debt to furnish relief to the needy. against the necessity of going deeply into debt to furnish relief to the needy. ~~T he~~The law will law will flatten out the peaks and flatten out the peaks and
valleys of deflation and of inflation. It is, in short, a lawvalleys of deflation and of inflation. It is, in short, a law ~~t hat~~ that will take care of human needs and at the same time will take care of human needs and at the same time
provide the United States an economic structure of vastly greater soundness”provide the United States an economic structure of vastly greater soundness” (available at http://www.ssa.gov/history/(available at http://www.ssa.gov/history/
fdrstmts.fdrstmts.~~ht ml~~html#signing). #signing).
2 2 ~~EB is temporarily 100% federally financed~~Under Section 4105 of P.L. 116-127, the Families First Coronavirus Response Act (FFCRA), as amended, EB was temporarily 100% federally financed from March 18, 2020, through September 4, 2021. .
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session expenditures. For example, in calendar year 2021, approximately 75% of all UI benefits paid out were federally financed.

When employment grows, state and federal UC tax revenues rise and spending on UC benefits When employment grows, state and federal UC tax revenues rise and spending on UC benefits
~~fal s~~falls because fewer workers are unemployed.3 In a recession, UC tax revenue decreases and UC because fewer workers are unemployed.3 In a recession, UC tax revenue decreases and UC
program spending increases as more workers lose their jobs and receive UC benefits. The program spending increases as more workers lose their jobs and receive UC benefits. The
increased amount of UC payments to unemployed workers mitigates the economic impact of a increased amount of UC payments to unemployed workers mitigates the economic impact of a
job loss by supplementing lost earnings and thus injecting additional funds into the economy. job loss by supplementing lost earnings and thus injecting additional funds into the economy.
~~Additional y,~~ Additionally, to support the UC program’s economic stabilization efforts during higher to support the UC program’s economic stabilization efforts during higher
unemployment periods, federal law includes an automatic extension of the regular UC benefit unemployment periods, federal law includes an automatic extension of the regular UC benefit
through the EB program. Triggering “on” to EB requires that a state meets certain unemployment through the EB program. Triggering “on” to EB requires that a state meets certain unemployment
thresholds. (The state also has options to adopt certain additional unemployment triggers.) In thresholds. (The state also has options to adopt certain additional unemployment triggers.) In
practice, the required EB trigger is set to such a high level of unemployment that the majority of practice, the required EB trigger is set to such a high level of unemployment that the majority of
states do not trigger onto EB in most recessions.4 The weekly EB payment to beneficiaries is the states do not trigger onto EB in most recessions.4 The weekly EB payment to beneficiaries is the
same as the underlying UC benefit amount and, thus, also varies by state. same as the underlying UC benefit amount and, thus, also varies by state.
Congress often supplements these stabilization efforts by enacting temporary UI benefit Congress often supplements these stabilization efforts by enacting temporary UI benefit
expansions. The 116th Congress created four expansions. The 116th Congress created four ~~new~~ temporary UI benefits in response the COVID-temporary UI benefits in response the COVID-
19 pandemic and the resulting economic recession in P.L. 116-136, the Coronavirus Aid, Relief, 19 pandemic and the resulting economic recession in P.L. 116-136, the Coronavirus Aid, Relief,
and Economic Security (CARES) Act (enacted March 27, 2020). The authorization for these and Economic Security (CARES) Act (enacted March 27, 2020). The authorization for these
benefits was subsequently extended (and in some cases the benefits were expanded) by the benefits was subsequently extended (and in some cases the benefits were expanded) by the
following: following:
 the Consolidated Appropriations Act, 2021 (P.L. 116-260, also known as the  the Consolidated Appropriations Act, 2021 (P.L. 116-260, also known as the
Continued Assistance for Unemployed Workers Act of 2020, or the Continued Continued Assistance for Unemployed Workers Act of 2020, or the Continued
Assistance Act; enacted December 27, 2020)5 and Assistance Act; enacted December 27, 2020)5 and
 the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2, enacted March 11,  the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2, enacted March 11,
2021).6 2021).6
The authority for these temporary, COVID-19 UI benefits expired after September 4, 2021.7 Unemployment Compensation Program
Federal law sets broad rules that state UC programs must follow. These include the broad Federal law sets broad rules that state UC programs must follow. These include the broad
categories of jobs and workers that must be covered by the program, the method for triggering the categories of jobs and workers that must be covered by the program, the method for triggering the
EB program, the floor on the highest state unemployment tax rate to be imposed on employers EB program, the floor on the highest state unemployment tax rate to be imposed on employers
(5.4%), and how the states (5.4%), and how the states ~~wil~~ will repay Unemployment Trust Fund (UTF) loans.repay Unemployment Trust Fund (UTF) loans.78 Although there Although there
are broad requirements under federal law regarding UC benefits and financing, the specifics are are broad requirements under federal law regarding UC benefits and financing, the specifics are
set out under each state’s laws, resulting in 53 different UC programs operated in the 50 states, set out under each state’s laws, resulting in 53 different UC programs operated in the 50 states,
the District of Columbia, Puerto Rico, and the Virgin Islands. DOL provides oversight of state UC the District of Columbia, Puerto Rico, and the Virgin Islands. DOL provides oversight of state UC
~~programs and state administration of al UI benefits. States operate their own UC programs and~~
~~also administer any temporary, federal UI benefits.~~

3 For a description of federal and state unemployment taxes, see CRS3 For a description of federal and state unemployment taxes, see CRS Report R44527, Report R44527, Unemployment Compensation:
The ~~Fundam entals~~Fundamentals of the Federal ~~Unem p loym ent~~Unemployment Tax (FUTA). .
4 Janet L. Norwood 4 Janet L. Norwood et al., et al., Collected Findings and Recommendations: 1994-1996, Advisory Council on Unemployment , Advisory Council on Unemployment
Compensation, 1996, pp. 2-4. For additional information on EB law changes over time, see Compensation, 1996, pp. 2-4. For additional information on EB law changes over time, see ~~T able~~Table A-1 in CRS A-1 in CRS Report Report
RL34340, RL34340, Extending ~~Unem ployment Com pensation~~Unemployment Compensation Benefits During Recessions. 5 Division N, Title II, Subtitle A. 6 Title IX, Subtitle A. 7 Through September 5, 2021, in New York state. 8 For details on how the UTF operates, see CRS ~~Benefits During Recessions. As of this writing (i.e., the week~~
~~beginning May 2, 2021), there are 14 jurisdictions triggered on to an EB period; see https://oui.doleta.gov/unemploy/~~
~~trigger/2021/trig_050221.html.~~
~~5 Division N, T itle II, Subtitle A.~~
~~6 T itle IX, Subtitle A.~~
~~7 For details on how the UT F operates, see CRS~~ Report RS22077, Report RS22077, Unemployment Compensation (UC) and the
~~Unem ploym ent~~Unemployment Trust Fund (UTF): Funding UC Benefits. .
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session programs and state administration of all UI benefits. States operate their own UC programs and also administer any temporary, federal UI benefits.

In general, UC eligibilityIn general, UC eligibility is based on attaining qualified wages and employment in UC-covered is based on attaining qualified wages and employment in UC-covered
~~work8~~work9 over a 12-month period over a 12-month period ~~cal ed~~called a base a base ~~period9~~period10 prior to unemployment. prior to unemployment. Al All states require a states require a
worker to have earned a certain amount of wages or to have worked for a certain period of time worker to have earned a certain amount of wages or to have worked for a certain period of time
(or both) within the base period to be eligible(or both) within the base period to be eligible to receive UC benefits. The methods states use to to receive UC benefits. The methods states use to
determine eligibilitydetermine eligibility vary greatly. In addition, each state’s UC law requires individuals to have vary greatly. In addition, each state’s UC law requires individuals to have
lost their jobs through no fault of their own, and recipients must be able to work, available for lost their jobs through no fault of their own, and recipients must be able to work, available for
work, and actively seeking work. These eligibilitywork, and actively seeking work. These eligibility requirements help ensure that UC benefits are requirements help ensure that UC benefits are
directed toward workers with labor market experience who are unemployed because of economic directed toward workers with labor market experience who are unemployed because of economic
conditions. Self-employed workers—conditions. Self-employed workers—~~potential y~~potentially including independent contractors and gig including independent contractors and gig
economy workers—are the largest group of workers economy workers—are the largest group of workers ~~general y~~generally excluded from eligibility excluded from eligibility for UC for UC
benefits. benefits.
UC benefit calculations are UC benefit calculations are ~~general y~~generally based on wages for covered work over the base period, as based on wages for covered work over the base period, as
described above. Most state benefit formulas replace half of a claimant’s average weekly wages described above. Most state benefit formulas replace half of a claimant’s average weekly wages
up to a weekly maximum. There is considerable variation by state in the weekly UC benefit up to a weekly maximum. There is considerable variation by state in the weekly UC benefit
amount. As of amount. As of ~~January~~July 2021, the maximum weekly benefit amounts ranged from $235 2021, the maximum weekly benefit amounts ranged from $235
(Mississippi) to $855 (Massachusetts(Mississippi) to $855 (Massachusetts~~, with 17 dependents).~~).11 The 12-month average, national The 12-month average, national
weekly benefit amount, as of weekly benefit amount, as of ~~May~~December 2021, was $ 2021, was $~~317.~~
350. UC Financing
The UC program is financed by federal taxes under the Federal Unemployment Tax Act (FUTA) The UC program is financed by federal taxes under the Federal Unemployment Tax Act (FUTA)
and by state payroll taxes under each state’s State Unemployment Tax Act (SUTA).and by state payroll taxes under each state’s State Unemployment Tax Act (SUTA).1012 The 0.6% The 0.6%
effective net FUTA tax that employers pay on the first $7,000 of each employee’s annual earnings effective net FUTA tax that employers pay on the first $7,000 of each employee’s annual earnings
(equaling no more than $42 per worker per year) funds federal and state administrative costs, (equaling no more than $42 per worker per year) funds federal and state administrative costs,
loans to insolvent state UC accounts, the federal share (50%) of EB payments, and state loans to insolvent state UC accounts, the federal share (50%) of EB payments, and state
Employment Services.Employment Services.11
~~Federal law limits employers’ SUTA taxes to funding regular UC benefits and the state share~~
~~(50%) of EB payments. Additional y, federal law requires that al states tax at least the first~~
~~$7,000 of each employee’s earnings and that the maximum state unemployment tax rate be at~~
~~least 5.4%. Federal law also requires each employer’s state unemployment tax rate to be based on~~
~~the amount of UC paid to former employees (known as “experience rating”). Within these broad~~
~~requirements, each state has great flexibility in determining its SUTA structure. In general, the~~
~~more UC benefits paid out to its former employees, the higher the employer’s tax rate, up to a~~

813 9 Covered work refers to any job that is subject Covered work refers to any job that is subject to unemployment payroll taxes (i.e., Federal Unemployment Tax Actto unemployment payroll taxes (i.e., Federal Unemployment Tax Act or or
state unemployment taxes) as wellstate unemployment taxes) as well as most state and local governmental employment.as most state and local governmental employment.
~~9 T he~~ 10 The base period is base period is the time period duringthe time period during which wageswhich wages earned or hours/weeksearned or hours/weeks ~~worked~~ worked are examined to determine a are examined to determine a
worker’s monetary entitlement to UC. Almost all states useworker’s monetary entitlement to UC. Almost all states use the first four of the last five completed calendar quarters the first four of the last five completed calendar quarters
preceding the filing of the claim aspreceding the filing of the claim as their base period. their base period. ~~T his~~This may result in a lag may result in a lag of up to five months between the end of of up to five months between the end of
the base period and the date a worker becomes unemployed. As a result the base period and the date a worker becomes unemployed. As a result ~~th ere~~there are some instances when are some instances when workers with workers with
substantial labor market attachment are ineligible for UC benefits. In particular, recent entrants substantial labor market attachment are ineligible for UC benefits. In particular, recent entrants ~~t o~~to the workforce or re- the workforce or re-
entrants may be ineligibleentrants may be ineligible ~~under~~ under this definition. Federal lawthis definition. Federal law ~~allows~~ allows states to develop expanded definitions of the base states to develop expanded definitions of the base
period. period.
~~10 23 U.S.C. §§3301-11.~~
~~11 FUT A~~ 11 In states that provide dependents’ allowances, the maximum benefit was $1,282 (Massachusetts, requiring 18 dependents for the maximum payment). See DOL, Significant Provisions of State Unemployment Insurance Laws, Effective July 2021, available at https://oui.doleta.gov/unemploy/content/sigpros/2020-2029/July2021.pdf. Dependents’ allowances are amounts paid on top of the weekly benefit amount in some states, using each state’s definition of dependent. 12 23 U.S.C. §§3301-11. 13 FUTA imposes a 6.0% gross tax rate on the first $7,000 paid annually by employers to each employee. Employers in imposes a 6.0% gross tax rate on the first $7,000 paid annually by employers to each employee. Employers in
states with programs approved by the federal government and with no delinquent states with programs approved by the federal government and with no delinquent ~~fede ral~~federal loans may credit 5.4 loans may credit 5.4
percentage points against the 6.0% tax rate, making the minimum net federal unemployment tax rate 0.6%. Details on percentage points against the 6.0% tax rate, making the minimum net federal unemployment tax rate 0.6%. Details on
how delinquent loans affect the net how delinquent loans affect the net ~~FUT A~~FUTA tax are in tax are in ~~CRS~~ CRS Report RS22954, Report RS22954, The ~~Unem ploym ent~~Unemployment Trust Fund (UTF):
State Insolvency and Federal Loans to States. For information on the Employment Service, see CRS. For information on the Employment Service, see CRS Report R43301, Report R43301,
~~Program s~~Programs Available to ~~Unem ployed Workers~~ Unemployed Workers Through the ~~Am erican~~American Job Center Network. .
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session Federal law limits employers’ SUTA taxes to funding regular UC benefits and the state share (50%) of EB payments. Additionally, federal law requires that all states tax at least the first $7,000 of each employee’s earnings and that the maximum state unemployment tax rate be at least 5.4%. Federal law also requires each employer’s state unemployment tax rate to be based on the amount of UC paid to former employees (known as “experience rating”). Within these broad requirements, each state has great flexibility in determining its SUTA structure. In general, the more UC benefits paid out to its former employees, the higher the employer’s tax rate, up to a

maximum established by state law. FUTA and SUTA funds are deposited in the appropriate maximum established by state law. FUTA and SUTA funds are deposited in the appropriate
accounts within the UTF.accounts within the UTF.1214
Extended Benefit Program
The EB program was established by the Federal-State Extended Unemployment Compensation The EB program was established by the Federal-State Extended Unemployment Compensation
Act of 1970 (P.L. 91-373). The EB program may provide up to an additional 13 or 20 weeks of Act of 1970 (P.L. 91-373). The EB program may provide up to an additional 13 or 20 weeks of
benefits for individuals who were previously eligible for UC benefits once regular UC benefits benefits for individuals who were previously eligible for UC benefits once regular UC benefits
are exhausted, depending on a number of factors: worker eligibility, state law, additional federal are exhausted, depending on a number of factors: worker eligibility, state law, additional federal
~~eligibility~~ eligibility requirements, and economic conditions in the state. requirements, and economic conditions in the state.
Extended Benefit Triggers
The EB program is triggered “on” when a state’s insured unemployment rate (IUR) or total The EB program is triggered “on” when a state’s insured unemployment rate (IUR) or total
unemployment rate (TUR) reaches certain levels.unemployment rate (TUR) reaches certain levels.~~13 Al~~ 15 All states must pay up to 13 weeks of EB if states must pay up to 13 weeks of EB if
the IUR for the previous 13 weeks is at least 5% and is 120% of the average of the rates for the the IUR for the previous 13 weeks is at least 5% and is 120% of the average of the rates for the
same 13-week period in each of the two previous years. States may choose to enact two other same 13-week period in each of the two previous years. States may choose to enact two other
optional thresholds. (States may choose one, two, or none.) If the state has chosen one or more of optional thresholds. (States may choose one, two, or none.) If the state has chosen one or more of
the EB trigger options, it would provide the following: the EB trigger options, it would provide the following:
 Option 1—based upon the  Option 1—based upon the ~~IUR14~~IUR16
 up to an additional 13 weeks of benefits if the state’s IUR is at least 6%,  up to an additional 13 weeks of benefits if the state’s IUR is at least 6%,
regardless of previous years’ averages. regardless of previous years’ averages.
 Option 2—based upon  Option 2—based upon ~~TUR15~~TUR17
 up to an additional 13 weeks of benefits if the state’s TUR is at least 6.5%  up to an additional 13 weeks of benefits if the state’s TUR is at least 6.5%
and is at least 110% of the state’s average TUR for the same 13 weeks in and is at least 110% of the state’s average TUR for the same 13 weeks in
either of the previous two years; or either of the previous two years; or
~~ up to an additional 20 weeks of benefits if the state’s TUR is at least 8% and~~
~~is at least 110% of the state’s average TUR for the same 13 weeks in either of~~
~~the previous two years. (This is designated as a High Unemployment Period~~
~~[HUP] for EB.)~~
~~No more than 13 weeks are available in total (or 20 weeks if the HUP conditions have been met)~~
~~as the triggers are not additive. When a state triggers “off” of an EB period, al EB benefit~~

12 14 For details on the For details on the ~~UT F~~UTF, see CRS, see CRS Report RS22077, Report RS22077, Unemployment Compensation (UC) and the Unemployment Trust
Fund (UTF): Funding UC Benefits. .
~~13 T he T UR~~15 The TUR is the three-month average of the ratio of unemployed workers to all workers (employed and unemployed) is the three-month average of the ratio of unemployed workers to all workers (employed and unemployed)
in the labor market. in the labor market. ~~T he T UR~~The TUR is essentially a three-month average version of the unemployment rate published by the is essentially a three-month average version of the unemployment rate published by the
BureauBureau of Labor Statistics (BLS)of Labor Statistics (BLS) and basedand based on data on data ~~fro m~~from the BLS’s monthly Current Population Survey. the BLS’s monthly Current Population Survey. ~~T he~~The IUR is IUR is
the ratio of UC claimants dividedthe ratio of UC claimants divided by individualsby individuals in UC-covered jobs.in UC-covered jobs. In addition, the IUR usesIn addition, the IUR uses a different base of a different base of
workers in its calculations as compared with the workers in its calculations as compared with the ~~T UR. T he~~TUR. The IUR excludes IUR excludes several groups usedseveral groups used ~~in T UR~~ in TUR calculations: calculations:
self-employed workers, unpaid family workers, workers in certain nonprofit organizations, and several other (primarily self-employed workers, unpaid family workers, workers in certain nonprofit organizations, and several other (primarily
seasonal) categories of workers. seasonal) categories of workers. ~~T he~~The IUR also excludes IUR also excludes those who have exhausted their UC benefits (even if those who have exhausted their UC benefits (even if ~~t hey~~they are are
receiving EB benefits), new entrants or re-entrants to the labor force, disqualifiedreceiving EB benefits), new entrants or re-entrants to the labor force, disqualified workers whose unemployment is workers whose unemployment is
consideredconsidered to have resulted from their own actions rather than from economic conditions, and eligibleto have resulted from their own actions rather than from economic conditions, and eligible unemployed unemployed
persons who do not file for benefits. As a result, the IUR in a state is often calculated to be much lowerpersons who do not file for benefits. As a result, the IUR in a state is often calculated to be much lower than its than its ~~T UR.~~
14TUR. 16 If EB is If EB is activated based upon the IUR (triggers “on”), the EB period isactivated based upon the IUR (triggers “on”), the EB period is immediately in effect. Seeimmediately in effect. See Section 203(a)(1) Section 203(a)(1)
of P.L. 91-373, as amended. of P.L. 91-373, as amended.
1517 By law, By law, a state triggering on to an EB period baseda state triggering on to an EB period based upon a upon a ~~T UR~~TUR-based-based trigger willtrigger will ~~begin~~ begin to offer those benefits on to offer those benefits on
the third week after the first week for which there is a state “the third week after the first week for which there is a state “ on” indicator. See Section 203(a)(1) of P.L. 91-373. on” indicator. See Section 203(a)(1) of P.L. 91-373.
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session  up to an additional 20 weeks of benefits if the state’s TUR is at least 8% and is at least 110% of the state’s average TUR for the same 13 weeks in either of the previous two years. (This is designated as a High Unemployment Period [HUP] for EB.) No more than 13 weeks are available in total (or 20 weeks if the HUP conditions have been met) as the triggers are not additive. When a state triggers “off” of an EB period, all EB benefit

payments in the state cease immediately, regardless of individual entitlement.payments in the state cease immediately, regardless of individual entitlement.1618 That is, EB That is, EB
benefits are not phased out (grandfathered) when a state triggers off the program.benefits are not phased out (grandfathered) when a state triggers off the program.1719
EB Eligibility and Benefit Amount
The EB benefit amount is equal to the eligible The EB benefit amount is equal to the eligible individual’s weekly regular UC benefit. The EB individual’s weekly regular UC benefit. The EB
program imposes federal restrictions on individual eligibilityprogram imposes federal restrictions on individual eligibility for EB beyond the state for EB beyond the state
requirements for regular UC. The EB program requires that a worker make a “systematic and requirements for regular UC. The EB program requires that a worker make a “systematic and
sustained” work search (as defined by state law). Furthermore, the worker may not receive sustained” work search (as defined by state law). Furthermore, the worker may not receive
benefits if he or she refused an offer of benefits if he or she refused an offer of suitable work, which is defined as “any work within such work, which is defined as “any work within such
individual’s capabilities.”individual’s capabilities.”1820 In addition, claimants must have worked at least 20 weeks of full- In addition, claimants must have worked at least 20 weeks of full-
time insured employment (or the equivalent as defined by the state) in insured wages during their time insured employment (or the equivalent as defined by the state) in insured wages during their
base periods. base periods.
EB Financing
Under permanent law, FUTA revenue finances 50% of the EB payments and 100% of EB Under permanent law, FUTA revenue finances 50% of the EB payments and 100% of EB
administrative costs. States fund the other 50% of EB benefit costs, under permanent law, through administrative costs. States fund the other 50% of EB benefit costs, under permanent law, through
their SUTA revenue. their SUTA revenue.
Temporary EB Financing Change
(expired) Section 4105 of P.L. 116-127, the Families First Coronavirus Response Act (FFCRA), as Section 4105 of P.L. 116-127, the Families First Coronavirus Response Act (FFCRA), as
amended, temporarily amended, temporarily ~~provides 100% federal y~~provided 100% federally financed EB (with the exception of state and local financed EB (with the exception of state and local
employees) for states that employees) for states that ~~receive~~received both halves of the emergency administrative grants authorized both halves of the emergency administrative grants authorized
under FFCRAunder FFCRA~~.19 The Continued Assistance Act (P.L. 116-260) extended the authority for this~~

~~16 If an EB period is deactivated based~~ , beginning with enactment of this law (March 18, 2021).21 The Continued 18 If an EB period is deactivated based upon the state failing to meet IUR basedupon the state failing to meet IUR based trigger requirements (i.e., it triggers trigger requirements (i.e., it triggers
“off”), the EB period is immediately ended.“off”), the EB period is immediately ended. If an EBIf an EB period triggers off basedperiod triggers off based upon a state failing to meet upon a state failing to meet ~~T UR~~TUR-based -based
trigger requirements, the EB period willtrigger requirements, the EB period will end on the third week after the first week for which there is a state “end on the third week after the first week for which there is a state “ off” off”
indicator. Seeindicator. See Section 203(a)(2) of P.L. 91-373, as amended. Section 203(a)(2) of P.L. 91-373, as amended.
By federal law, By federal law, no EB period shall last for a period of less than 13 consecutive weeks, and no EBno EB period shall last for a period of less than 13 consecutive weeks, and no EB period may begin period may begin
before the 14th week after the close of a prior EB period with respect to such state.before the 14th week after the close of a prior EB period with respect to such state. ~~See~~ See Section 203(b) of P.L. 91-373, Section 203(b) of P.L. 91-373,
as amended. as amended.
EB benefits on interstate claims are limited to two extra weeks EB benefits on interstate claims are limited to two extra weeks ~~unless~~ unless both the workerboth the worker ’s state of residence and the ’s state of residence and the
worker’s state of previous employment are in an EB period. worker’s state of previous employment are in an EB period. ~~T he~~The rules for triggering on and off EB based rules for triggering on and off EB based upon multiple upon multiple
triggers are provided in triggers are provided in ~~T itle~~Title 20, Section 615.11, of the 20, Section 615.11, of the Code of Federal Regulations. .
~~17 T he~~19 The Continued Assistance Act (P.L. 116-260) provided a temporary option for states that have triggered off an EB Continued Assistance Act (P.L. 116-260) provided a temporary option for states that have triggered off an EB
period to disregardperiod to disregard the mandatory 13-week off period for weeks between November 1, 2020, and the mandatory 13-week off period for weeks between November 1, 2020, and ~~Decem ber~~December 31, 2021, 31, 2021,
if state law allows. if state law allows.
18 20 State UC State UC programs have their own definitions related to work search and refusal of suitable work. Seeprograms have their own definitions related to work search and refusal of suitable work. See ~~T ables~~ Tables 5.16 5.16
and 5.18 in DOL, Employment and and 5.18 in DOL, Employment and ~~T raining~~Training Administration (ETA), Administration (ETA), ~~2020 Com parison of State Unem ployment~~ 2020 Comparison of State Unemployment
Insurance Laws, , at https://oui.doleta.gov/unemploy/pdf/uilawcompar/2020/nonmonetary.pdf. https://oui.doleta.gov/unemploy/pdf/uilawcompar/2020/nonmonetary.pdf.
1921 Section 4102(a) of FFCRA Section 4102(a) of FFCRA provided up to a total of $1 billion in “emergency administrative grants” to states in provided up to a total of $1 billion in “emergency administrative grants” to states in
calendar year 2020. Half of each state’s share wascalendar year 2020. Half of each state’s share was available if the state met certain requirements related to UC ~~available if the state met certain requirements related to UC~~
~~eligibility notifications and claims access. T he second half of each state’s share was available if a state qualified for the~~
~~first half and experienced at least a 10% increase in UC claims over the previous calendar year and met certain other~~
~~requirements related to easing UC eligibility requirements for individuals affected by COVID-19. Additionally, there~~
~~were reporting requirements to DOL and committees of jurisdiction within one year for states that receive these grants.~~
~~DOL published the state shares of these emergency administrative grants in Unemployment Insurance Program Letter~~
~~(UIPL) No. 13-20, “ Families First Coronavirus Response Act, Division D Emergency Unemployment Insurance~~
~~Stabilization and Access Act of 2020,” March 22, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8634.~~
~~As of June 11, 2020, according to DOL, all states met the statistical criteria for receiving these FFCRA grants (see~~
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session Assistance Act (P.L. 116-260) extended the authority for this

100% federal financing of EB through March 13, 2021 (March 14, 2021, in New York).100% federal financing of EB through March 13, 2021 (March 14, 2021, in New York).2022 ARPA ARPA
(P.L. 117-2) subsequently extended this authority through September 4, 2021(P.L. 117-2) subsequently extended this authority through September 4, 2021, when it expired. .
Temporary Adoption of Optional EB Triggers Based on Expired 100% Federal Financing
for EB
Some states Some states ~~have~~ reacted to this temporary 100% federal financing by enacting temporary EB reacted to this temporary 100% federal financing by enacting temporary EB
trigger options that trigger options that ~~remain~~remained in place for the duration of the increased federal cost share. According in place for the duration of the increased federal cost share. According
to DOL, 13 states to DOL, 13 states ~~have~~ adopted a more responsive TUR trigger but authorized a sunset for these adopted a more responsive TUR trigger but authorized a sunset for these
TUR triggers tied to the availabilityTUR triggers tied to the availability of the 100% federal financing for EB.of the 100% federal financing for EB.2123
Temporary COVID-19 Pandemic UI Programs
(expired) The 116th Congress created several new temporary UI benefits through the CARES Act (March The 116th Congress created several new temporary UI benefits through the CARES Act (March
27, 2020) in response the COVID-19 pandemic and the resulting economic recession. The 27, 2020) in response the COVID-19 pandemic and the resulting economic recession. The
Continued Assistance Act (December 27, 2020) and ARPA (March 11, 2021) subsequently Continued Assistance Act (December 27, 2020) and ARPA (March 11, 2021) subsequently
extended the authorization for these COVID-19 UI benefits and, in some cases, expanded their extended the authorization for these COVID-19 UI benefits and, in some cases, expanded their
duration. Under ARPA, duration. Under ARPA, ~~the current expiration for al~~ all of the COVID-19 UI programs—PUA, of the COVID-19 UI programs—PUA,
PEUC, FPUC, and MEUC—PEUC, FPUC, and MEUC—~~is currently~~expired September 4, 2021. September 4, 2021.
The statutory authority for the temporary UI benefits The statutory authority for the temporary UI benefits ~~specifies~~specified that they that they ~~are~~were payable through payable through
voluntary agreements between the DOL and each state that voluntary agreements between the DOL and each state that ~~chooses~~chose to provide them. to provide them. Al All states states
~~initial y~~ initially signed agreements to pay almost signed agreements to pay almost al all of these benefits (two states, Idaho and South of these benefits (two states, Idaho and South
Dakota, did not amend their FPUC agreements to administer the MEUC payment). However, 26 Dakota, did not amend their FPUC agreements to administer the MEUC payment). However, 26
states announced they were terminating their agreements to pay COVID-19 UI benefits prior to states announced they were terminating their agreements to pay COVID-19 UI benefits prior to
program expiration (i.e., before September 4, 2021). However, according to DOL, in two of these program expiration (i.e., before September 4, 2021). However, according to DOL, in two of these
states—Indiana and Maryland—state courts states—Indiana and Maryland—state courts ~~have~~ issued temporary orders prohibiting withdrawal issued temporary orders prohibiting withdrawal
from some or from some or al all of these COVID-19 UI programs. of these COVID-19 UI programs.
Pandemic Unemployment Assistance (PUA; expired)
PUA PUA iswas a temporary, federal UI program for individuals who a temporary, federal UI program for individuals who ~~are~~were (1) not otherwise eligible for UI (1) not otherwise eligible for UI
benefits (e.g., self-employed, independent contractors, gig economy workers, or those who benefits (e.g., self-employed, independent contractors, gig economy workers, or those who ~~have~~
~~exhausted al entitlement to other UI benefits); (2) unemployed, partial y unemployed, or unable~~
~~to work due to a specific COVID-19-related reason; and (3) not able to telework and not~~
~~receiving any paid leave. As original y constructed under the CARES Act, PUA provided up to 39~~
~~weeks of benefits for weeks of unemployment ending December 26, 2020. The Continued~~
~~Assistance Act authorized 11 additional weeks of PUA benefits (not retroactive; only payable~~

eligibility notifications and claims access. The second half of each state’s share was available if a state qualified for the first half and experienced at least a 10% increase in UC claims over the previous calendar year and met certain other requirements related to easing UC eligibility requirements for individuals affected by COVID-19. Additionally, there were reporting requirements to DOL and committees of jurisdiction within one year for states that received these grants. DOL published the state shares of these emergency administrative grants in Unemployment Insurance Program Letter (UIPL) No. 13-20, “Families First Coronavirus Response Act, Division D Emergency Unemployment Insurance Stabilization and Access Act of 2020,” March 22, 2020, at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8634. As of June 11, 2020, according to DOL, all states met the statistical criteria for receiving these FFCRA grants (see https://oui.doleta.gov/unemploy/pdf/IC3MOmarch.pdf). All states requested their full allotment of these FFCRA grants https://oui.doleta.gov/unemploy/pdf/IC3MOmarch.pdf). All states requested their full allotment of these FFCRA grants
by September 30, 2020. by September 30, 2020.
20 22 For subsequent For subsequent UI benefit expiration dates provided below,UI benefit expiration dates provided below, the benefit expiration date in New York the benefit expiration date in New York ~~falls~~was one one
calendar day later, which is duecalendar day later, which is due to state definitions of to state definitions of week. .
2123 According to DOL, these states According to DOL, these states ~~are~~were California, Colorado, Delaware, California, Colorado, Delaware, the District of Columbia, Georgia,the District of Columbia, Georgia, Illinois, Illinois,
Kentucky, Massachusetts, Michigan, Nevada, NewKentucky, Massachusetts, Michigan, Nevada, New York, Ohio, and York, Ohio, and ~~T exas~~Texas. Some states . Some states ~~have~~ cited the specific federal cited the specific federal
~~law~~ law in their sunset dates, whilein their sunset dates, while other states other states ~~have~~ used specific dates that used specific dates that ~~align~~aligned with an upcoming expiration of the 100% with an upcoming expiration of the 100%
federal financing of EB. federal financing of EB. ~~T exas~~Texas’s EB ’s EB ~~T UR~~TUR trigger statute requires that if 100% federal financing of EB is available, trigger statute requires that if 100% federal financing of EB is available, ~~then~~
~~T exas~~ then Texas must promulgate a regulation to use it (basedmust promulgate a regulation to use it (based on DOL/on DOL/~~ET A~~ETA email communication with authors, January 16, email communication with authors, January 16,
2021). 2021).
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session had exhausted all entitlement to other UI benefits); (2) unemployed, partially unemployed, or unable to work due to a specific COVID-19-related reason; and (3) not able to telework and not receiving any paid leave. As originally constructed under the CARES Act, PUA provided up to 39 weeks of benefits for weeks of unemployment ending December 26, 2020. The Continued Assistance Act authorized 11 additional weeks of PUA benefits (not retroactive; only payable

with respect to weeks of unemployment beginning December 26, 2020) for a total of 50 weeks of with respect to weeks of unemployment beginning December 26, 2020) for a total of 50 weeks of
PUA.PUA.2224
In the In the first session of the 117th Congress, ARPA 117th Congress, ARPA ~~authorizes~~authorized 29 additional weeks of PUA benefits (not retroactive; 29 additional weeks of PUA benefits (not retroactive;
only payable with respect to weeks of unemployment beginning March 14, 2021). ARPA also only payable with respect to weeks of unemployment beginning March 14, 2021). ARPA also
~~extends~~extended the authorization for PUA through weeks of unemployment ending on or before the authorization for PUA through weeks of unemployment ending on or before
September 6, 2021. No PUA benefits September 6, 2021. No PUA benefits ~~are~~were payable after September 4, 2021. payable after September 4, 2021.~~23 The current~~ 25 The PUA PUA
expiration date effectively expiration date effectively ~~limits~~limited PUA benefits to an additional 25 weeks and a cumulative total PUA benefits to an additional 25 weeks and a cumulative total
of 75 weeks. of 75 weeks.
The PUA benefit amount The PUA benefit amount iswas the weekly benefit amount as calculated under state law based on the weekly benefit amount as calculated under state law based on
recent earnings, subject to the minimum benefit under Disaster Unemployment Assistance recent earnings, subject to the minimum benefit under Disaster Unemployment Assistance
(DUA),(DUA),2426 which is half of the state’s average weekly UC benefit amount. In territories without which is half of the state’s average weekly UC benefit amount. In territories without
UC programs, the PUA benefit UC programs, the PUA benefit iswas determined by DUA determined by DUA regulations.regulations.27
UC Exhaustion and PUA
During a period of unemployment, individuals may have been eligibleDuring a period of unemployment, individuals may have been eligible for benefits under multiple for benefits under multiple
UI programs, including programs authorized in the CARES Act, as amended. UI programs, including programs authorized in the CARES Act, as amended. ~~Once~~While the temporary, COVID-19 UI programs were authorized, once an individual had ~~an individual~~
~~has~~ exhausted entitlement to UC, Pandemic Emergency Unemployment Compensation (PEUC), exhausted entitlement to UC, Pandemic Emergency Unemployment Compensation (PEUC),
and EB benefits, the individualand EB benefits, the individual may may behave been eligible eligible to collect PUA if the cause of unemployment to collect PUA if the cause of unemployment iswere
attributable to a specific COVID-19-related reason. The 50-week entitlement to PUA would attributable to a specific COVID-19-related reason. The 50-week entitlement to PUA would be
have been reduced by the number of UC and EB weeks received by the individual. reduced by the number of UC and EB weeks received by the individual.
Pandemic Emergency Unemployment Compensation (PEUC; expired) When authorized, PEUC provided)
~~PEUC provides~~ additional weeks of additional weeks of ~~federal y~~federally financed UI benefits for individuals who were financed UI benefits for individuals who were
previously eligiblepreviously eligible for UC benefits but exhausted for UC benefits but exhausted al all UC entitlement and UC entitlement and ~~are~~were able, available, and able, available, and
actively seeking work, subject to COVID-19-related flexibilities. It was actively seeking work, subject to COVID-19-related flexibilities. It was ~~original y~~originally created as a created as a
13-week UI extension under the CARES Act and payable through weeks of unemployment 13-week UI extension under the CARES Act and payable through weeks of unemployment
ending December 26, 2020, but the Continued Assistance Act authorized 11 additional weeks of ending December 26, 2020, but the Continued Assistance Act authorized 11 additional weeks of
~~PEUC~~ PEUC benefits (not retroactive; only payable with respect to weeks of unemployment beginning benefits (not retroactive; only payable with respect to weeks of unemployment beginning
~~December 26, 2020)—for a total of 24 weeks of PEUC.25~~
~~In the 117th Congress, ARPA authorizes 29 additional weeks of PEUC benefits (not retroactive;~~
~~only payable with respect to weeks of unemployment beginning March 14, 2021). ARPA also~~
~~extends the authorization for PEUC through weeks of unemployment ending on or before~~
~~September 6, 2021. Thus, no PEUC benefits are payable after September 4, 2021.26 The current~~
~~PEUC expiration date effectively limits PEUC benefits to an additional 25 weeks and a~~
~~cumulative total of 49 weeks.~~

~~22 T he~~December 26, 2020)—for a total of 24 weeks of PEUC.28 24 The Continued Assistance Act extended the authorization for PUA through weeks of unemployment ending on or Continued Assistance Act extended the authorization for PUA through weeks of unemployment ending on or
before March 14, 2021. It also created a phaseout period for PUA so that, for individuals receiving PUA at the end of before March 14, 2021. It also created a phaseout period for PUA so that, for individuals receiving PUA at the end of
the program who had not exhausted available weeksthe program who had not exhausted available weeks of PUA and remained otherwise eligible,of PUA and remained otherwise eligible, PUA benefits were PUA benefits were
payable until April 10, 2021. payable until April 10, 2021.
23 25 ARPA did ARPA did not provide authority for a phaseout period under PUA after program expiration. not provide authority for a phaseout period under PUA after program expiration.
2426 For information on DUA, see CRS For information on DUA, see CRS Report RS22022, Report RS22022, Disaster Unemployment Assistance (DUA). .
~~25 T he~~27 Under 20 C.F.R. Section 625.2(r)(1)(ii), the applicable state law for Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands is the Hawaii Employment Security Law. 28 The Continued Assistance Act also extended the authorization for PEUC through weeks of unemployment ending on Continued Assistance Act also extended the authorization for PEUC through weeks of unemployment ending on
or before March 14, 2021. In addition, it created a phaseout period for PEUC so that, for those individuals who were or before March 14, 2021. In addition, it created a phaseout period for PEUC so that, for those individuals who were
receiving PEUC at the end of the program, had not exhausted availablereceiving PEUC at the end of the program, had not exhausted available ~~weeks~~ weeks of PEUC, and remained otherwise Congressional Research Service 7 link to page 14 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session In the first session of the 117th Congress, ARPA authorized 29 additional weeks of PEUC benefits (not retroactive; only payable with respect to weeks of unemployment beginning March 14, 2021). ARPA also extended the authorization for PEUC through weeks of unemployment ending on or before September 6, 2021. Thus, no PEUC benefits were payable after September 4, 2021.29 The final PEUC expiration date effectively limited PEUC benefits to an additional 25 weeks and a cumulative total of 49 weeks. The PEUC benefit amount was equal to the eligible ~~of PEUC, and remained otherwise~~
~~eligible, PEUC benefits were payable until April 10, 2021.~~
~~26 ARPA did not provide authority for a phaseout period under PEUC after program expiration.~~
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~~link to page 14~~ ~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

~~The PEUC benefit amount is equal to the eligible~~ individual’s weekly regular UC benefit amount individual’s weekly regular UC benefit amount
including any dependent including any dependent ~~al owance~~allowance. .
Federal Pandemic Unemployment Compensation (FPUC; expired) Originally )
~~Original y~~ authorized under the CARES Act at $600 per week, FPUC was a benefit augmentation authorized under the CARES Act at $600 per week, FPUC was a benefit augmentation
for for al all individuals receiving any weekly UI benefit. The $600 FPUC benefit individuals receiving any weekly UI benefit. The $600 FPUC benefit ~~initial y~~ initially expired on expired on
July 25, 2020. The Continued Assistance Act reestablished FPUC by reauthorizing the FPUC July 25, 2020. The Continued Assistance Act reestablished FPUC by reauthorizing the FPUC
amount at a lower $300 per week for weeks of unemployment beginning after December 26, amount at a lower $300 per week for weeks of unemployment beginning after December 26,
2020, and ending on or before March 14, 2021. 2020, and ending on or before March 14, 2021.
In the In the first session of the 117th Congress, ARPA 117th Congress, ARPA ~~extends~~extended the Continued Assistance Act’s reauthorization of FPUC at the Continued Assistance Act’s reauthorization of FPUC at
$300 per week through weeks of unemployment ending on or before September 6, 2021. After $300 per week through weeks of unemployment ending on or before September 6, 2021. After
September 4, 2021, no FPUC benefits September 4, 2021, no FPUC benefits ~~are~~were payable. payable.
Mixed Earner Unemployment Compensation (MEUC; expired)
The Continued Assistance Act created a $100-a-week MEUC payment in addition to the $300-a- The Continued Assistance Act created a $100-a-week MEUC payment in addition to the $300-a-
week FPUC benefit in states that week FPUC benefit in states that ~~elect~~elected to participate. MEUC to participate. MEUC ~~provides~~provided a $100 weekly benefit a $100 weekly benefit for individuals ~~for~~
~~individuals~~ who received at least $5,000 in self-employment income in the most recent tax year who received at least $5,000 in self-employment income in the most recent tax year
(i.e., the tax year ending prior to the individual’s application for state UI benefits) and who (i.e., the tax year ending prior to the individual’s application for state UI benefits) and who
~~receive~~received almost any UI benefit (including UC, EB, and PEUC but excluding PUA). MEUC was almost any UI benefit (including UC, EB, and PEUC but excluding PUA). MEUC was
~~original y~~ originally authorized for weeks of unemployment beginning on or after December 27, 2020, and authorized for weeks of unemployment beginning on or after December 27, 2020, and
ending on or before March 14, 2021. Idaho and South Dakota did not sign agreements with DOL ending on or before March 14, 2021. Idaho and South Dakota did not sign agreements with DOL
to administer MEUC. to administer MEUC.
In the In the first session of the 117th Congress, ARPA 117th Congress, ARPA ~~extends~~extended the authorization of the $100-a-week MEUC payment in the authorization of the $100-a-week MEUC payment in
participating states for weeks of unemployment ending on or before September 6, 2021. After participating states for weeks of unemployment ending on or before September 6, 2021. After
September 4, 2021, no MEUC benefits September 4, 2021, no MEUC benefits ~~are~~were payable. payable.
~~Current~~ Flow of UI Benefits Under ARPA Prior to Expiration
Figure 1 provides the flow of provides the flow of ~~al available~~ all available UI benefits, including temporary COVID-19 UI UI benefits, including temporary COVID-19 UI
benefits, from March 13, 2021, through September 4, 2021benefits, from March 13, 2021, through September 4, 2021 (i.e., prior to benefit expirations). This flow . This flow iswas contingent on an contingent on an
~~individual meeting al eligibility~~ individual meeting all eligibility criteria for the respective programs. It criteria for the respective programs. It iswas also contingent on a also contingent on a
state having an agreement with DOL to administer the programs authorized under the CARES state having an agreement with DOL to administer the programs authorized under the CARES
Act, as amended by the Continued Assistance Act and ARPA. As described in more detail below, Act, as amended by the Continued Assistance Act and ARPA. As described in more detail below,
~~as of the cover date of this report, 26 states have~~ prior to the September 2021 program expirations, 26 states had attempted to terminate some or attempted to terminate some or al all of the of the
temporary UI benefits authorized under the CARES Act, temporary UI benefits authorized under the CARES Act, as amended. eligible, PEUC benefits were payable until April 10, 2021. 29 ARPA did not provide authority for a phaseout period under PEUC after program expiration~~as amended~~. .
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Figure 1. Current Coordination of the Flow of UI Benefits Under the American
Rescue Plan Act of 2021 Prior to Expiration
(March 13, 2021, through September 4, 2021) (March 13, 2021, through September 4, 2021)

Source: CRS analysis based on the UI provisionsCRS analysis based on the UI provisions in Title IX, Subtitle A,in Title IX, Subtitle A, of the Americanof the American Rescue Plan Act of Rescue Plan Act of
2021 (P.L. 117-2) and DOL guidance. 2021 (P.L. 117-2) and DOL guidance.
Notes: This coordination flow This coordination flow iswas contingent on an individual meeting contingent on an individual meeting ~~al eligibility criteria~~ all eligibility criteria for the respective for the respective
programs.programs. ~~It is~~ It was also contingent on a state having an agreement with DOL to administer each benefit. also contingent on a state having an agreement with DOL to administer each benefit.
Transition rules: (1) Individuals who were receivingTransition rules: (1) Individuals who were receiving EB for the weekEB for the week ending Decemberending December 26, 2020, were required 26, 2020, were required
to remainto remain on EB until those benefits were exhausted. After that point, they may have been eligibleon EB until those benefits were exhausted. After that point, they may have been eligible for additional for additional
PEUC if available. (2) Individuals who werePEUC if available. (2) Individuals who were receiving EB for the week ending March 13, 2021, must receiving EB for the week ending March 13, 2021, must ~~remain~~ have remained on EB on EB
until those benefits until those benefits ~~are~~were exhausted. After that point, they may exhausted. After that point, they may behave been eligible eligible for additional PEUC if available. for additional PEUC if available.
PUA PUA iswas the last payer. the last payer. Al All other UI benefits must other UI benefits must behave been exhausted or unavailable. States exhausted or unavailable. States ~~have~~had a temporary, a temporary, ~~six~~ six-week -week
authorization to continue to pay PUA rather than PEUC if an individual was receivingauthorization to continue to pay PUA rather than PEUC if an individual was receiving PUA for the PUA for the ~~week~~ week ending ending
March 13, 2021. March 13, 2021.
FPUC, MEUC, PUA, and PEUC FPUC, MEUC, PUA, and PEUC ~~are~~were authorized through September 4, 2021 (September 5, 2021, for New authorized through September 4, 2021 (September 5, 2021, for New York). ~~York).~~
~~According to DOL, South Dakota and Idaho did not sign agreements to offer MEUC, and Wyoming announced~~
~~retroactively that it was not opting for the MEUC program.~~
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session According to DOL, South Dakota and Idaho did not sign agreements to offer MEUC.

As of August 4, 2021, according to DOL,As of August 4, 2021, according to DOL, the fol owing 24 states the fol owing 24 states ~~have~~had effectively terminated effectively terminated their agreements their agreements
with DOL to pay somewith DOL to pay some ~~or al~~ or all COVID-19 UI benefits: Alabama,COVID-19 UI benefits: Alabama, Alaska,Alaska, Arkansas, Arizona,Arkansas, Arizona, Florida,Florida, Georgia,Georgia, Idaho, Idaho,
Iowa, Louisiana, Mississippi,Iowa, Louisiana, Mississippi, Missouri,Missouri, Montana, Nebraska, New Hampshire,Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, North Dakota, Ohio, Oklahoma,
South Carolina,South Carolina, South Dakota, Tennessee,South Dakota, Tennessee, Texas, Utah, WestTexas, Utah, West Virginia, and Wyoming.Virginia, and Wyoming.
Two additional states—Indiana and Maryland—also announced terminations of their state agreementsTwo additional states—Indiana and Maryland—also announced terminations of their state agreements to pay to pay
COVID-UI benefits. According to DOL, in both Indiana and Maryland, however,COVID-UI benefits. According to DOL, in both Indiana and Maryland, however, state courts state courts ~~have~~ issued issued
temporary temporary ~~orders~~ orders prohibiting withdrawal from COVID-19 UI programs.prohibiting withdrawal from COVID-19 UI programs. (Additional legal challenges were reported in other states but do not appear to have reestablished participation.) Thus, in Indiana PUA, PEUC and FPUC Thus, in Indiana PUA, PEUC and FPUC
~~continue~~ continued to be payable (MEUC to be payable (MEUC iswas terminated, effective July 19, 2021); and in Maryland, PUA, PEUC, FPUC, and terminated, effective July 19, 2021); and in Maryland, PUA, PEUC, FPUC, and
~~MEUC continue~~MEUC continued to be payable to be payable until program expiration. .
States ~~Opting~~that Opted to Terminate COVID-19 Pandemic UI Programs Early
As discussed earlier, almost As discussed earlier, almost ~~al states initial y~~ all states initially signed agreements to pay signed agreements to pay al all COVID-19 UI COVID-19 UI
benefits but 26 states announced terminations of their agreements with DOL to pay some or benefits but 26 states announced terminations of their agreements with DOL to pay some or al all of of
these temporary UI benefits, with effective benefit termination dates ranging from June 12, 2021, these temporary UI benefits, with effective benefit termination dates ranging from June 12, 2021,
to July 31, 2021:to July 31, 2021:2730 The 26 states The 26 states ~~are~~were
 Alabama, Alaska, Arkansas, Arizona, Florida, Georgia, Idaho, Indiana, Iowa,  Alabama, Alaska, Arkansas, Arizona, Florida, Georgia, Idaho, Indiana, Iowa,
Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New
Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota,
Tennessee, Texas, Utah, West Virginia, and Wyoming. Tennessee, Texas, Utah, West Virginia, and Wyoming.
According to DOL, state courts in Indiana and Maryland According to DOL, state courts in Indiana and Maryland ~~have~~ issued temporary orders issued temporary orders
prohibiting withdrawal from COVID-19 UI programs. Thus, in Indiana PUA, PEUC and FPUC prohibiting withdrawal from COVID-19 UI programs. Thus, in Indiana PUA, PEUC and FPUC
~~continue~~continued to be payable (MEUC to be payable (MEUC iswas terminated, effective July 19, 2021); and in Maryland, PUA, terminated, effective July 19, 2021); and in Maryland, PUA,
PEUC, FPUC, and MEUC PEUC, FPUC, and MEUC ~~continue~~continued to be payable to be payable until program expiration. There were also ~~. There have also been~~ media reports of media reports of
additional legaladditional legal ~~chal enges~~ challenges in other states that in other states that ~~have~~ announced terminations of COVID-19 announced terminations of COVID-19 UI UI
agreements.agreements.2831
Implications of State Terminations of COVID-19 UI Agreements for the
Federal Budget
The COVID-19 UI benefits were legislatively The COVID-19 UI benefits were legislatively constructed to be entitlements for eligible constructed to be entitlements for eligible
individuals. In budgetary terms, the COVID-19 UI benefits, like permanent-law UI benefits, individuals. In budgetary terms, the COVID-19 UI benefits, like permanent-law UI benefits, ~~are~~
were mandatory entitlements that mandatory entitlements that ~~are~~were funded through direct spending not subject to annual funded through direct spending not subject to annual
appropriations.appropriations.2932 As such, UI benefits are not capped entitlements, block grants, or otherwise As such, UI benefits are not capped entitlements, block grants, or otherwise
limited by an appropriated amount. Reflecting this arrangement, the CARES Act, as amended, limited by an appropriated amount. Reflecting this arrangement, the CARES Act, as amended,
~~authorizes~~authorized “such sums as the Secretary of Labor estimates to be necessary to make payments” “such sums as the Secretary of Labor estimates to be necessary to make payments”
~~from the General Fund of the Treasury to fund payments of these UI benefits for eligible~~
~~claimants.30~~

27 30 For additional information on how states may For additional information on how states may ~~terminate~~have terminated their CARES Act agreements, see CRS their CARES Act agreements, see CRS Insight IN11679, Insight IN11679,
States Opting Out of COVID-19 ~~Unem ploym ent~~Unemployment Insurance (UI) ~~Agreem ents~~Agreements. For more information on which COVID-. For more information on which COVID-
19 UI benefits states terminated, including effective dates, see CRS19 UI benefits states terminated, including effective dates, see CRS Report R46687, Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic Response. 31 See, ~~Report R46687,~~ ~~Current Status of Unem ploym ent~~
~~Insurance (UI) Benefits: Perm anent-Law Program s and COVID-19 Pandem ic Response~~.
~~28 See,~~ for example, Eleanor Mueller and Rebeccafor example, Eleanor Mueller and Rebecca Rainey, “Labor advocates winningRainey, “Labor advocates winning back federal joblessback federal jobless aid in state aid in state
court battles,” court battles,” Politico.com, Augustcom, August 11, 2021; and Lisa Rowan,11, 2021; and Lisa Rowan, “ “Why workers are suingWhy workers are suing states for cutting off expanded states for cutting off expanded
unemployment benefits,” unemployment benefits,” Forbes.com, updated July 14, 2021. , updated July 14, 2021.
2932 For additional information on UI benefits in the budget, For additional information on UI benefits in the budget, see Congressional Budgetsee Congressional Budget Office (CBO), “Options for Office (CBO), “Options for
ReducingReducing the Deficit: Mandatory Spending,” December 6, 2013, the Deficit: Mandatory Spending,” December 6, 2013, at https://www.cbo.gov/publication/44939. https://www.cbo.gov/publication/44939.
~~30 For PUA, see Section 2102(g)(1)(B) of the CARES Act, as amended; for FPUC/MEUC, see Section 2014(d)(3) of~~
~~the CARES Act, as amended; and for PEUC, see Section 2107(d)(1)(B).~~
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Unemployment Insurance: Legislative Issues in the 117th Congress, First Session from the General Fund of the Treasury to fund payments of these UI benefits for eligible claimants.33

As mentioned previously, the framework of the CARES Act As mentioned previously, the framework of the CARES Act ~~requires~~required states to enter into a states to enter into a
voluntary agreement with the Labor Secretary to administer these COVID-19 UI benefits. Thus, voluntary agreement with the Labor Secretary to administer these COVID-19 UI benefits. Thus,
if a state if a state ~~terminates~~terminated its agreement(s) to provide PUA, FPUC/MEUC, or PEUC early, there its agreement(s) to provide PUA, FPUC/MEUC, or PEUC early, there iswas no no
longer an agreement to pay these COVID-19 UI benefits in that state; and any hypothetical funds longer an agreement to pay these COVID-19 UI benefits in that state; and any hypothetical funds
for CARES Act benefit payments that would have otherwise been paid for those weeks of for CARES Act benefit payments that would have otherwise been paid for those weeks of
unemployment (i.e., if the state had not terminated its agreement(s)) unemployment (i.e., if the state had not terminated its agreement(s)) ~~remain~~remained in the General Fund in the General Fund
of the Treasury. of the Treasury. ~~Additional y~~Additionally, if a state that , if a state that ~~terminates~~terminated any agreement(s) to pay COVID-19 UI any agreement(s) to pay COVID-19 UI
benefits benefits ~~has~~had unexpended funds designated for CARES Act benefits, that state unexpended funds designated for CARES Act benefits, that state ~~must~~ was required to return those return those
funds to the General Fund of the Treasury.funds to the General Fund of the Treasury.3134
Unemployment Insurance Benefits and the
Sequester
The sequester order required by the Budget Control Act of 2011 (BCA; P.L. 112-25) and The sequester order required by the Budget Control Act of 2011 (BCA; P.L. 112-25) and
implemented on March 1, 2013 (after being delayed by P.L. 112-240), implemented on March 1, 2013 (after being delayed by P.L. 112-240), ~~affected~~affects some types of UI some types of UI
expenditures.expenditures.3235 UC payments are not subject to the sequester reductions. EB and most forms of UC payments are not subject to the sequester reductions. EB and most forms of
administrative funding are subject to the sequester reductions.administrative funding are subject to the sequester reductions.3336
FY2021 Sequester of Unemployment Insurance Benefits
The FY2021 sequestration order The FY2021 sequestration order ~~requires~~required a 5.7% reduction in a 5.7% reduction in al all nonexempt nondefense nonexempt nondefense
mandatory expenditures, but no sequestration reductions mandatory expenditures, but no sequestration reductions ~~are~~were applicable to discretionary programs, applicable to discretionary programs,
projects, and activities.projects, and activities.3437 As a result, the federal share of EB expenditures As a result, the federal share of EB expenditures is were required to be required to be
reduced by 5.7% for weeks of unemployment during FY2021.reduced by 5.7% for weeks of unemployment during FY2021.~~35 When EB is payable in FY2021~~
~~and there is authority for the 100% federal financing of EB (with the exception of non-sharable~~
~~compensation—e.g., state and local workers),36 the net sequester reduction to EB benefit~~

3138 When EB was 33 For PUA, see Section 2102(g)(1)(B) of the CARES Act, as amended; for FPUC/MEUC, see Section 2014(d)(3) of the CARES Act, as amended; and for PEUC, see Section 2107(d)(1)(B). 34 In a July 16, 2021, letter to Senator Kyrsten Sinema, CBO stated that it has reduced In a July 16, 2021, letter to Senator Kyrsten Sinema, CBO stated that it has reduced its cost projections for COVID-its cost projections for COVID-
19 UI benefits under19 UI benefits under ARPA by $50 billion in 2021, and by $3 billion in 2022 (i.e., less than the projections made under ARPA by $50 billion in 2021, and by $3 billion in 2022 (i.e., less than the projections made under
CBO’sCBO’s March 2021 cost estimate). March 2021 cost estimate). ~~T hese~~These changes were integrated into the underlying, revised CBO changes were integrated into the underlying, revised CBO baseline. CBO baseline. CBO
reducedreduced its COVID-19 UI cost projections for two reasons: (1) the early terminations of COVIDits COVID-19 UI cost projections for two reasons: (1) the early terminations of COVID -19 UI agreements by -19 UI agreements by
states and (2) a loweredstates and (2) a lowered forecast of the unemployment rate due to forecast of the unemployment rate due to ~~impro ving~~improving economic conditions. See CBO, economic conditions. See CBO, “ “Re: Cost Re: Cost
of the Extension of Expanded Unemployment Compensation,” July 16, 2021, of the Extension of Expanded Unemployment Compensation,” July 16, 2021, at https://www.cbo.gov/system/files/2021-https://www.cbo.gov/system/files/2021-
07/57366-Sinema-UI.pdf. 07/57366-Sinema-UI.pdf.
~~32 See CRS~~ 35 See CRS Report R42972, Report R42972, Sequestration as a Budget Enforcement Process: Frequently Asked Questions. .
~~33 T he~~36 The Emergency Unemployment Compensation program, when it was available (including Emergency Unemployment Compensation program, when it was available (including any benefit any benefit ~~paym ents~~payments
delayeddelayed from prior fiscal years), wasfrom prior fiscal years), was also subject to the sequester reductions. Seealso subject to the sequester reductions. See ~~CRS~~ CRS Report R43133, Report R43133, The ~~Im pact~~Impact of
Sequestration on ~~Unem ploym ent~~Unemployment Insurance Benefits: Frequently Asked Questions for additional information on the for additional information on the
impact of sequestration on UI benefits generally and specifically, for sequestration in FY2013 and FY2014. See CRS impact of sequestration on UI benefits generally and specifically, for sequestration in FY2013 and FY2014. See CRS
Report R43993, Report R43993, ~~Unem ployment~~Unemployment Insurance: Legislative Issues in the 114th Congress for additional information on the for additional information on the
implications of the sequester order for FY2015 and FY2016implications of the sequester order for FY2015 and FY2016 ; CRS; CRS Report R44836, Report R44836, ~~Unem ployment~~Unemployment Insurance:
Legislative Issues in the 115th Congress for additional information on the implications of the sequester order for for additional information on the implications of the sequester order for
FY2017 and FY2018; and CRSFY2017 and FY2018; and CRS Report R45478, Report R45478, ~~Unem ployment~~Unemployment Insurance: Legislative Issues in the 116th Congress for for
additional information on the implications of the sequester order for FY2019 and FY2020. additional information on the implications of the sequester order for FY2019 and FY2020.
34 37 Office of Management and Budget Office of Management and Budget, , OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year
2021, February 10, 2020, , February 10, 2020, at https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-sequestration_report_FY21_2-https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-sequestration_report_FY21_2-
10-20.pdf. 10-20.pdf.
3538 For details, see For details, see ~~ET A~~ETA, UIPL No. 18-19, September 16, 2019, , UIPL No. 18-19, September 16, 2019, at https://wdr.doleta.gov/directives/corr_doc.cfm? Congressional Research Service 11 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session payable in FY2021 and there was authority for the 100% federal financing of EB (with the exception of non-sharable compensation—e.g., state and local workers),39 the net sequester reduction to EB benefit payments for FY2021 was~~https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=~~
~~5955.~~
~~36 T he temporary federal financing of EB, as authorized under FFCRA (P.L. 116-127), was extended by the Continued~~
~~Assistance Act through weeks of unemployment ending on or before March 14, 2021, which included the first two~~
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~~payments for FY2021 is~~ 2.85%. (The reduction to non-sharable EB benefits would 2.85%. (The reduction to non-sharable EB benefits would ~~remain~~have remained at at
5.7%.5.7%.3740) )
The temporary COVID-19 UI benefits created under the CARES Act and subsequently extended The temporary COVID-19 UI benefits created under the CARES Act and subsequently extended
under the Continued Assistance Act and ARPA (as under the Continued Assistance Act and ARPA (as ~~wel~~ well as MEUC, which was created under the as MEUC, which was created under the
Continued Assistance Act) were not Continued Assistance Act) were not ~~specifical y~~specifically excluded from sequestration. However, the excluded from sequestration. However, the
Office of Management and Budget released the FY2021 order prior to the enactment of the Office of Management and Budget released the FY2021 order prior to the enactment of the
CARES Act.CARES Act.3841 Thus, the temporary UI benefits created under the CARES Act and extended under Thus, the temporary UI benefits created under the CARES Act and extended under
the Continued Assistance Act and ARPAthe Continued Assistance Act and ARPA ~~are~~ were not subject to the FY2021 mandatory sequester not subject to the FY2021 mandatory sequester
~~order.~~
~~State UC Loans and Solvency Concerns~~
~~If a recession is deep enough and if SUTA revenue is inadequate for a sustained duration, states~~
~~may have insufficient funds to pay for UC benefits. Federal law, which requires states to pay~~
~~these benefits, provides a loan mechanism within the UTF framework that an insolvent state may~~
~~use to meet its UC benefit payment obligations.39 States must pay back these loans. If the loans~~
~~are not paid back quickly (depending on the timing of the beginning of the loan period), states~~
~~may face interest charges, and states’ employers may face increased net FUTA rates until the~~
~~loans are repaid.40~~
~~As of August 23, 2021, 16 jurisdictions had outstanding federal loans totaling $54.1 bil ion from~~
~~the federal accounts within the UTF: California ($23.7 bil ion), Colorado ($1.0 bil ion),~~
~~Connecticut ($725.1 mil ion), Hawai ($684.5 mil ion), Il inois ($4.2 bil ion), Maryland ($68.5~~
~~mil ion), Massachusetts ($2.3 bil ion), Minnesota ($1.0 bil ion), Nevada ($332.4 mil ion), New~~
~~Jersey ($112.2 mil ion), New York ($9.7 bil ion), Ohio ($1.5 bil ion), Pennsylvania ($1.6 bil ion),~~
~~Texas ($6.9 bil ion), the U.S. Virgin Islands ($96.7 mil ion), and West Virginia ($184.9 mil ion).41~~
~~At the end of 2019, 31 states had accrued enough funds in their accounts to meet or exceed the~~
~~minimal y solvent standard of an average high cost multiple (AHCM) of 1.0 in order to be~~
~~prepared for a recession.42 By the end of 2020, the impact of the recessionary demands on the~~

~~quarters of FY2021. T his provision was further extended under ARPA through September 4, 2021, which includes the~~
~~remaining quarters of FY2021.~~
~~37 For details, see ET A, UIPL No. 12-21, January 19, 2021, at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=~~
~~9913.~~
~~38 T he FY2021 sequestration order was issued by the President on February 10, 2020, available at~~
~~https://www.federalregister.gov/documents/2020/02/13/2020-03044/sequestration-order-for-fiscal-year-2021-pursuant -~~
~~to-section-251a-of-the-balanced-budget-and.~~
~~39 Federal UC law does not restrict states from using loan resources outside of the UT F. Depending on state law, states~~
~~may have other funding measures available and may be able to use funds from outside of the UT F to pay the benefits~~
~~(such as issuing bonds).~~
~~40 Details on how states may borrow federal funds to pay for UC benefits are in CRS Report RS22954,~~ ~~The~~
~~Unem ploym ent Trust Fund (UTF): State Insolvency and Federal Loans to States~~.
~~41 U.S. Department of the T reasury, Bureau of Public Debt, Title XII Advance Activities Schedule, August 23, 2021,~~
~~http://www.treasurydirect.gov/govt/reports/tfmp/tfmp_advactivitiessched.htm.~~
~~42 T he AHCM is the ratio of actual state UT F account balances (divided by covered wages in that year) to the average~~
~~of the three highest years of benefit payments (each divided by that year’s covered wages) experienced by the state~~
~~over the past 20 years. Presumably, the average of the three highest years’ outlays would be a good indicator of~~
~~potential expected UC payments if another recession were to occur. Under these assumptions, if a state had saved~~
~~enough funds to pay for an average high year of UC benefit activity, its AHCM would be at least 1.0. See DOL, Office~~
~~of Unemployment Insurance, State Unem ployment Insurance Trust Fund Solvency Report 2020 , February 2020,~~
~~https://oui.doleta.gov/unemploy/docs/trustFundSolvReport2020.pdf.~~
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~~state UC programs brought about by the COVID-19 pandemic had lowered this number to 13~~
~~states.43~~
~~Reemployment Services and Eligibility Assessments~~
~~Beginning in FY2015, DOL funded state efforts “addressing individual reemployment needs of~~
~~UI claimants, and working to prevent and detect UI overpayments” through the voluntary~~
~~Reemployment Services and Eligibility Assessment (RESEA) program.44 RESEA provides~~
~~funding to states to conduct in-person interviews with selected UI claimants to (1) assure that~~
~~claimants are complying with the eligibility rules, (2) determine if reemployment services are~~
~~needed for the claimant to secure future employment, (3) refer the individual to reemployment~~
~~services as necessary, and (4) provide labor market information that addresses the claimant’s~~
~~specific needs.~~
~~In 2017, Section 30206 of P.L. 115-123 codified the authority for DOL under permanent law to~~
~~administer a RESEA program.45 It also set out various requirements for states to use certain types~~
~~of evidence-based interventions for UI claimants under RESEA and al ocated discretionary~~
~~funding for RESEA across three categories (base funding, outcome payments, and research and~~
~~technical assistance). State RESEA programs must include reasonable notice and~~
~~accommodations for UI beneficiaries selected for participation.46~~
~~RESEA is a permanently authorized program with funding scheduled to increase over future~~
~~fiscal years. Yet circumstances related to the COVID-19 pandemic have presented chal enges to~~
~~the in-person nature of RESEA service delivery. On June 12, 2020, DOL provided the following~~
~~guidance to states on the issue of RESEA during the COVID-19 pandemic:~~
~~During the temporary circumstances related to COVID-19, states have flexibility to~~
~~conduct RESEA service delivery by telephone if other person-to-person virtual means~~
~~are not practical.~~

~~43 See DOL, Office of Unemployment Insurance, State Unemployment Insurance Trust Fund Solvency Report 2021 ,~~
~~March 2021, https://oui.doleta.gov/unemploy/docs/trustFundSolvReport2021.pdf.~~
~~44 Since FY2005, DOL has provided some type of reemployment services through discretionary appropriations. For~~
~~additional background, see CRS Report R43044,~~ ~~Expediting the Return to Work: Approaches in the Unem ploym ent~~
~~Com pensation Program~~ ~~; and ET A, Unemployment Insurance Program Letter, UIPL 3 -17, December 8, 2016, p. 2,~~
~~https://wdr.doleta.gov/directives/attach/UIPL/UIPL_03-17.pdf.~~
~~45 T he law created a new Section 306 of the Social Security Act. Just over a month later, on March 23, 2018, the~~
~~Consolidated Appropriations Act, FY2018 (P.L. 115-141), provided from the UT F $2.6 billion in state grants for~~
~~administering state UI laws as authorized under T itle III of the Social Security Act (including not less than $120~~
~~million for RESEA and UC improper payment reviews and to provide reemployment services and referrals to training,~~
~~as appropriate) and provided that such activities would not be subject to the newly created Section 306 of the Social~~
~~Security Act for that fiscal year (FY2018).~~
~~46 On April 4, 2019, DOL published a proposed methodology to allocate base RESEA funds and outcome payments.~~
~~DOL requested state and public comments on this proposal by May 6, 2019 (ET A, “ Allocating Grants to States for~~
~~Reemployment Services and Eligibility Assessments [RESEA] and Determining Outcome Payments in Accordance~~
~~With T itle III, Section 306 of the Social Security Act,” 84 Federal Register 13319-21, April 4, 2019,~~
~~https://www.govinfo.gov/content/pkg/FR-2019-04-04/pdf/2019-06558.pdf). On August 8, 2019, DOL published a~~
~~notice that summarizes and responds to the public comments and sets out the RESEA allocation formula that will be~~
~~effective beginning in FY2021. (ET A, “ Allocating Grants to States for Reemployment Services and Eligibility~~
~~Assessments [RESEA] in Accordance With T itle III, Section 306 of the Social Security Act [SSA],” 84~~ ~~Federal~~
~~Register~~ ~~139018-20, August 8, 2019, https://www.govinfo.gov/content/pkg/FR-2019-08-08/pdf/2019-16988.pdf.)~~
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~~In recognition that traditional work search may not be feasible, states are encouraged~~
~~to focus on helping claimants frame effective reemployment and work search plans to~~
~~be implemented when there is no longer a COVID-19 threat.47~~
~~President’s Budget Proposal for FY2022~~
~~The President’s budget proposal for FY2022 includes changes to several aspects of the UI~~
~~system. First, this proposal outlines “a set of high-level principles that should guide future efforts~~
~~to reform the UI system,” 48 which include addressing~~
~~ benefit access for eligible workers,~~
~~ inadequate benefit levels,~~
~~ limited eligibility, and~~
~~ racial disparities.~~
~~The President’s budget proposal for FY2022 also proposes an alteration to the formula that~~
~~determines the federal appropriation for state UI administration, the first substantive update in~~
~~decades.49 Specifical y, this proposal would update~~order. FY2022 Sequester of Unemployment Insurance Benefits The FY2022 sequestration order also required a 5.7% reduction in all nonexempt nondefense mandatory expenditures, but no sequestration reductions were applicable to discretionary programs, projects, and activities.42 Thus, the federal share of EB expenditures at the end of the first session of the 117th Congress was required to be reduced by 5.7% for the weeks of unemployment during FY2021.43 In program guidance, DOL announced that the temporary COVID-19 UI benefits created under the CARES Act and subsequently extended under the Continued Assistance Act and ARPA (as well as MEUC, which was created under the Continued Assistance Act) were not subject to FY2022 sequestration: The PPAs [programs, projects, and activities] established through enactment of the CARES Act, as amended, expired September 6, 2021. Although residual benefit payments will continue to be issued to claimants beyond the expiration of these programs, the Department, in consultation with OMB, has determined these residual benefit payments to be obligations incurred when the week of unemployment was experienced. Therefore, residual benefit payments will continue to be charged to the FY 2021 budget authority and will not be subject to the 5.7 percent sequestration reduction.44 DOCN=5955. 39 The temporary federal financing of EB, as authorized under FFCRA (P.L. 116-127), was extended by the Continued Assistance Act through weeks of unemployment ending on or before March 14, 2021, which included the first two quarters of FY2021. This provision was further extended under ARPA through September 4, 2021, which included the remaining quarters of FY2021. 40 For details, see ETA, UIPL No. 12-21, January 19, 2021, at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9913. 41 The FY2021 sequestration order was issued by the President on February 10, 2020, available at https://www.federalregister.gov/documents/2020/02/13/2020-03044/sequestration-order-for-fiscal-year-2021-pursuant-to-section-251a-of-the-balanced-budget-and. 42 Office of Management and Budget, OMB Report to the Congress on the BBEDCA 251A Sequestration for Fiscal Year 2022, May 28, 2021, at https://www.whitehouse.gov/wp-content/uploads/2021/05/BBEDCA_251A_Sequestration_Report_FY2022.pdf. 43 For details, see ETA, UIPL No. 5-22, December 20, 2021, at https://wdr.doleta.gov/directives/corr_doc.cfm?docn=9859. 44 Ibid, p. 2. Congressional Research Service 12 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session State UC Loans and Solvency Concerns If a recession is deep enough and if SUTA revenue is inadequate for a sustained duration, states may have insufficient funds to pay for UC benefits. Federal law, which requires states to pay these benefits, provides a loan mechanism within the UTF framework that an insolvent state may use to meet its UC benefit payment obligations.45 States must pay back these loans. If the loans are not paid back quickly (depending on the timing of the beginning of the loan period), states may face interest charges, and states’ employers may face increased net FUTA rates until the loans are repaid.46 Immediately before the COVID-19-related recession began, 31 states were determined to have accrued enough funds in their UTF accounts to meet or exceed the minimally solvent standard as defined by DOL in order to be prepared for a recession.47 However, the rapid increase in the number of individuals receiving regular UC benefits during the COVID-19 related recession strained many states’ trust fund balances. At the end of FY2019, one jurisdiction had a federal UTF loan totaling $64 million (U.S. Virgin Islands). In comparison, by the end of FY2020, 19 jurisdictions had federal UTF loans totaling $34.1 billion (California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Ohio, Pennsylvania, Texas, U.S. Virgin Islands, and West Virginia). By the end of FY2021, the number of jurisdictions with outstanding federal loans had decreased to 12 jurisdictions (California, Colorado, Connecticut, Hawaii, Illinois, Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, Texas, and U.S. Virgin Islands) but the loans had increased to $45.6 billion.48 Reemployment Services and Eligibility Assessments Beginning in FY2015, DOL funded state efforts “addressing individual reemployment needs of UI claimants, and working to prevent and detect UI overpayments” through the voluntary Reemployment Services and Eligibility Assessment (RESEA) program.49 RESEA provides funding to states to conduct in-person interviews with selected UI claimants to (1) assure that claimants are complying with the eligibility rules, (2) determine if reemployment services are needed for the claimant to secure future employment, (3) refer the individual to reemployment services as necessary, and (4) provide labor market information that addresses the claimant’s specific needs. 45 Federal UC law does not restrict states from using loan resources outside of the UTF. Depending on state law, states may have other funding measures available and may be able to use funds from outside of the UTF to pay the benefits (such as issuing bonds). 46 For details on how states may borrow federal funds to pay for UC benefits, see CRS Report RS22954, The Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States. 47 See DOL, Office of Unemployment Insurance, State Unemployment Insurance Trust Fund Solvency Report 2020, February 2020, at https://oui.doleta.gov/unemploy/docs/trustFundSolvReport2020.pdf. 48 Data on jurisdictions and loan amounts are available by selecting the data category “loan” at https://oui.doleta.gov/unemploy/data_summary/DataSum.asp. 49 Since FY2005, DOL has provided some type of reemployment services through discretionary appropriations. For additional background, see CRS Report R43044, Expediting the Return to Work: Approaches in the Unemployment Compensation Program; and ETA, Unemployment Insurance Program Letter, UIPL 3-17, December 8, 2016, p. 2, at https://wdr.doleta.gov/directives/attach/UIPL/UIPL_03-17.pdf. Congressional Research Service 13 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session In 2017, Section 30206 of P.L. 115-123 codified the authority for DOL under permanent law to administer a RESEA program.50 It also set out various requirements for states to use certain types of evidence-based interventions for UI claimants under RESEA and allocated discretionary funding for RESEA across three categories (base funding, outcome payments, and research and technical assistance). State RESEA programs must include reasonable notice and accommodations for UI beneficiaries selected for participation.51 RESEA is a permanently authorized program with funding scheduled to increase over future fiscal years. Yet circumstances related to the COVID-19 pandemic presented challenges to the in-person nature of RESEA service delivery. On June 12, 2020, DOL provided the following guidance to states on the issue of RESEA during the COVID-19 pandemic: During the temporary circumstances related to COVID-19, states have flexibility to conduct RESEA service delivery by telephone if other person-to-person virtual means are not practical. In recognition that traditional work search may not be feasible, states are encouraged to focus on helping claimants frame effective reemployment and work search plans to be implemented when there is no longer a COVID-19 threat.52 President’s Budget Proposal for FY2022 The President’s budget proposal for FY2022 included changes to several aspects of the UI system. First, this proposal outlined “a set of high-level principles to guide future efforts to reform the UI system,” 53 which included addressing  benefit access for eligible workers,  inadequate benefit levels,  limited eligibility, and  racial disparities. 50 The law created a new Section 306 of the Social Security Act. Just over a month later, on March 23, 2018, the Consolidated Appropriations Act, FY2018 (P.L. 115-141), provided from the UTF $2.6 billion in state grants for administering state UI laws as authorized under Title III of the Social Security Act (including not less than $120 million for RESEA and UC improper payment reviews and to provide reemployment services and referrals to training, as appropriate) and provided that such activities would not be subject to the newly created Section 306 of the Social Security Act for that fiscal year (FY2018). 51 On April 4, 2019, DOL published a proposed methodology to allocate base RESEA funds and outcome payments. DOL requested state and public comments on this proposal by May 6, 2019 (ETA, “Allocating Grants to States for Reemployment Services and Eligibility Assessments [RESEA] and Determining Outcome Payments in Accordance With Title III, Section 306 of the Social Security Act,” 84 Federal Register 13319-21, April 4, 2019, at https://www.govinfo.gov/content/pkg/FR-2019-04-04/pdf/2019-06558.pdf). On August 8, 2019, DOL published a notice that summarizes and responds to the public comments and sets out the RESEA allocation formula that will be effective beginning in FY2021. (ETA, “Allocating Grants to States for Reemployment Services and Eligibility Assessments [RESEA] in Accordance With Title III, Section 306 of the Social Security Act [SSA],” 84 Federal Register 139018-20, August 8, 2019, at https://www.govinfo.gov/content/pkg/FR-2019-08-08/pdf/2019-16988.pdf.) 52 DOL, “Operational Flexibilities Update—E-Blast to State Unemployment Insurance Agencies on June 12, 2020,” at https://oui.doleta.gov/unemploy/pdf/pandemicflexibilities_06122020.pdf. 53 DOL, “FY2022 Congressional Budget Justification, Employment and Training Administration, State Unemployment Insurance and Employment Service Operations,” p. 16, at https://www.dol.gov/sites/dolgov/files/general/budget/2022/CBJ-2022-V1-07.pdf. Congressional Research Service 14 link to page 14 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session The President’s budget proposal for FY2022 also proposed an alteration to the formula that determines the federal appropriation for state UI administration, the first substantive update in decades.54 Specifically, this proposal would have updated assumptions related to UI claims processing assumptions related to UI claims processing
and state UI workforce salary rates, as prior assumptions for these factors were not capturing and state UI workforce salary rates, as prior assumptions for these factors were not capturing
current administrative costs in states. current administrative costs in states.
~~Additional y,~~ Additionally, the President’s budget proposal for FY2022 the President’s budget proposal for FY2022 ~~requests $6 mil ion~~requested $6 million “to modernize “to modernize
critical information technology infrastructure essential to the states’ administration of the UI critical information technology infrastructure essential to the states’ administration of the UI
program,” and $100 program,” and $100 ~~mil ion~~million “for development of modular federal UI technology capabilities.” “for development of modular federal UI technology capabilities.”50
55 This additional funding would This additional funding would ~~support~~have supported timely, accurate, and equitable payment of UI benefits by timely, accurate, and equitable payment of UI benefits by
states. states. ~~Final y~~Finally, the President’s budget proposal for FY2022 , the President’s budget proposal for FY2022 ~~includes~~included $250,000,000 in funding for $250,000,000 in funding for
RESEA, which combines reemployment services with an assessment of claimants’ continuing RESEA, which combines reemployment services with an assessment of claimants’ continuing
~~eligibility~~ eligibility for UI benefits. for UI benefits.
Laws Enacted in the 117th Congress, First Session
P.L. 117-2, the American Rescue Plan Act of 2021
The UI provisions in Title IX, Subtitle A, of ARPA The UI provisions in Title IX, Subtitle A, of ARPA ~~make~~made four significant changes to UI programs four significant changes to UI programs
and benefits. and benefits.
Reauthorization and Extension of CARES Act UI Benefits
(expired) As described in more detail above, APRA As described in more detail above, APRA ~~extends~~extended the authority for PUA, PEUC, FPUC, and the authority for PUA, PEUC, FPUC, and
MEUC through September MEUC through September 34, 2021. , 2021. ~~Additional y~~Additionally, ARPA authorized 29 additional, ARPA authorized 29 additional weeks each of PUA and PEUC benefits payable with respect to weeks of unemployment beginning March 14, 2021 (not retroactive). The PUA expiration date under ARPA effectively limited PUA benefits to no more than an additional 25 weeks and a cumulative total of 75 weeks. The PEUC expiration date under ARPA effectively limited~~weeks each of~~

~~47 DOL, “Operational Flexibilities Update—E-Blast to State Unemployment Insurance Agencies on June 12, 2020,”~~
~~https://oui.doleta.gov/unemploy/pdf/pandemicflexibilities_06122020.pdf.~~
~~48 DOL, “FY2022 Congressional Budget Justification, Employment and T raining Administration, State Unemployment~~
~~Insurance and Employment Service Operations,” p. 16, https://www.dol.gov/sites/dolgov/files/general/budget/2022/~~
~~CBJ-2022-V1-07.pdf.~~
~~49 For an overview of current funding for UI administration, see CRS In Focus IF10838,~~ ~~Funding the State~~
~~Adm inistration of Unem ploym ent Com pensation (UC) Benefits~~.
~~50 DOL, “FY2022 Congressional Budget Justification, Employment and T raining Administration, State Unemployment~~
~~Insurance and Employment Service Operations,” p. 21, https://www.dol.gov/sites/dolgov/files/general/budget/2022/~~
~~CBJ-2022-V1-07.pdf.~~
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~~PUA and PEUC benefits payable with respect to weeks of unemployment beginning March 14,~~
~~2021 (not retroactive).~~
~~The PUA expiration date under ARPA effectively limits PUA benefits to no more than an~~
~~additional 25 weeks and a cumulative total of 75 weeks. The PEUC expiration date under ARPA~~
~~effectively limits~~ PEUC benefits to no more than an additional 25 weeks and a cumulative total PEUC benefits to no more than an additional 25 weeks and a cumulative total of of
49 weeks. 49 weeks.
Figure 1 provides the flow of provides the flow of ~~al currently available~~all now-expired, temporary COVID-19 UI benefits—including PUA, PEUC, FPUC, UI benefits—including PUA, PEUC, FPUC,
and MEUC—from March 13, 2021, through September 4, 2021. and MEUC—from March 13, 2021, through September 4, 2021.
Extensions of Additional UI Provisions (expired)
ARPA ARPA ~~extends~~extended the temporary authority for additional UI provisions first authorized under FFCRA the temporary authority for additional UI provisions first authorized under FFCRA
and the CARES Act and subsequently reauthorized under the Continued Assistance Act. The and the CARES Act and subsequently reauthorized under the Continued Assistance Act. The
authorities for the following UI provisions authorities for the following UI provisions ~~are general y~~were generally extended through September 6, 2021 (or extended through September 6, 2021 (or
for weeks of unemployment ending on or before September 6, 2021 [i.e., through September 4, for weeks of unemployment ending on or before September 6, 2021 [i.e., through September 4,
~~2021]):~~
2021]): 54 For an overview of current funding for UI administration, see CRS In Focus IF10838, Funding the State Administration of Unemployment Compensation (UC) Benefits. 55 DOL, “FY2022 Congressional Budget Justification, Employment and Training Administration, State Unemployment Insurance and Employment Service Operations,” p. 21, at https://www.dol.gov/sites/dolgov/files/general/budget/2022/CBJ-2022-V1-07.pdf. Congressional Research Service 15 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session  waiver of interest payments and the accrual of interest on federal advances  waiver of interest payments and the accrual of interest on federal advances
(loans) to states to pay regular UI benefits through temporary assistance for states (loans) to states to pay regular UI benefits through temporary assistance for states
with advances; with advances;
 100% federal funding of EB;  100% federal funding of EB;
 100% federal funding for the first week of UC benefits in states with no waiting  100% federal funding for the first week of UC benefits in states with no waiting
week ( week (~~original y~~originally 100% federal funding under CARES Act, then 50% funding 100% federal funding under CARES Act, then 50% funding
under the Continued Assistance Act, then restored to 100% federal funding under under the Continued Assistance Act, then restored to 100% federal funding under
ARPA that ARPA that iswas retroactive and retroactive and ~~applies~~applied as if the reduction to 50% funding had not as if the reduction to 50% funding had not
occurred); occurred);
 75% federal funding of state UC benefits based on service with certain  75% federal funding of state UC benefits based on service with certain
employers; employers;5156
 100% federal financing of Short-Time  100% federal financing of Short-Time ~~Compensation52~~Compensation57 (STC; work sharing) in (STC; work sharing) in
states states ~~with~~that had existing programs and 50% federal financing for states that set up existing programs and 50% federal financing for states that set up
STC programs (up to the equivalent of 26 weeks of benefits for individuals); and STC programs (up to the equivalent of 26 weeks of benefits for individuals); and
 waiver of federal requirements regarding merit staffing for state UI programs on  waiver of federal requirements regarding merit staffing for state UI programs on
an emergency, temporary basis in response to COVID-19 (limited to certain an emergency, temporary basis in response to COVID-19 (limited to certain
temporary actions taken by states to quickly process UI claims, including rehiring temporary actions taken by states to quickly process UI claims, including rehiring
former employees and temporary hiring). former employees and temporary hiring).

~~51 T his funding is for UC benefits paid to former employees of reimbursing employers. Reimbursing employers are~~
~~state and local governments, Indian tribes, and nonprofit organizations (including the Kennedy Center) that have opted~~
~~not to pay UI taxes but instead reimburse states for regular UI benefits paid to their former employees. Under both the~~
~~CARES Act and the Continued Assistance Act, the federal funding for these UC benefits was previously 50 %. T he~~
~~75% federal funding authorized for these UC benefits under ARPA begins for weeks of unemployment after March 31,~~
~~2021.~~
~~52 For information on ST C, see CRS Report R40689,~~ ~~Compensated Work Sharing Arrangements (Short-Time~~
~~Com pensation) as an Alternative to Layoffs~~.
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~~UI Tax Exclusion for 2020~~
~~ARPA al ows~~ UI Tax Exclusion for 2020 ARPA allowed taxpayers to exclude up to $10,200 in UI benefits from income in 2020 for the taxpayers to exclude up to $10,200 in UI benefits from income in 2020 for the
purposes of federal income for taxpayers with a modified AGI of less than $150,000. The purposes of federal income for taxpayers with a modified AGI of less than $150,000. The
$150,000 AGI threshold $150,000 AGI threshold ~~applies~~applied regardless of the taxpayer’s filing status (i.e., married filing regardless of the taxpayer’s filing status (i.e., married filing
jointly, single, or head of household).jointly, single, or head of household).5358
Additional UI Administrative Funding
ARPA ARPA ~~provides $2 bil ion~~ provided $2 billion in additional UI administrative funding to DOL in FY2021 to “detect in additional UI administrative funding to DOL in FY2021 to “detect
and prevent fraud, promote equitable access, and ensure the timely payment of benefits.” This and prevent fraud, promote equitable access, and ensure the timely payment of benefits.” This
funding funding iswas available available until expended and until expended and ~~may be~~could have been used for (1) federal administrative costs, (2) used for (1) federal administrative costs, (2)
system-wide infrastructure, and (3) grants to states and territories for program integrity and fraud system-wide infrastructure, and (3) grants to states and territories for program integrity and fraud
prevention purposes, including for identity verification and faster claims processing for prevention purposes, including for identity verification and faster claims processing for ~~al UI~~
all UI benefits. benefits.
ARPA also ARPA also ~~provides~~provided an additional $8 an additional $8 ~~mil ion~~ million to DOL in FY2021, availableto DOL in FY2021, available until expended, for until expended, for
~~necessary expenses to carry out federal activities related to the administration of UI programs.~~
~~Legislative Proposals in the 117th Congress~~
~~This section provides summary information on al legislation introduced in~~necessary expenses to carry out federal activities related to the administration of UI programs. 56 This funding was for UC benefits paid to former employees of reimbursing employers. Reimbursing employers are state and local governments, Indian tribes, and nonprofit organizations (including the Kennedy Center) that have opted not to pay UI taxes but instead reimburse states for regular UI benefits paid to their former employees. Under both the CARES Act and the Continued Assistance Act, the federal funding for these UC benefits was previously 50%. The 75% federal funding authorized for these UC benefits under ARPA began for weeks of unemployment after March 31, 2021. 57 For information on STC, see CRS Report R40689, Compensated Work Sharing Arrangements (Short-Time Compensation) as an Alternative to Layoffs. 58 For more background on this temporary tax exclusion on UI benefits, see CRS In Focus IF11782, Federal Taxation of Unemployment Insurance Benefits. Congressional Research Service 16 link to page 20 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session Legislative Proposals in the 117th Congress, First Session This section provides summary information on all legislation that was introduced in the first session of the 117th Congress the 117th Congress
that would that would ~~amend~~have amended UI programs and benefits. These UI programs and benefits. These ~~bil s have not yet gained passage. Only bil s~~
~~with full bil text available via http://www.congress.gov are summarized~~bills did not gain passage in the first session of the 117th Congress. (Enacted legislation is . (Enacted legislation is
described in an earlier section on described in an earlier section on “Laws Enacted in the 117th Congress.”, First Session.”) )
Taxation of UI Benefits
H.R. 435
On January 21, 2021, Representative Nydia Velázquez introduced H.R. 435, the Excluding On January 21, 2021, Representative Nydia Velázquez introduced H.R. 435, the Excluding
Pandemic Unemployment Compensation from Income Act. H.R. 435 would Pandemic Unemployment Compensation from Income Act. H.R. 435 would ~~exclude al~~ have excluded all FPUC FPUC
payments from gross income calculations for federal income tax purposes (as payments from gross income calculations for federal income tax purposes (as ~~wel~~ well as for purposes as for purposes
~~of al~~ of all federal and federal and ~~federal y~~federally assisted programs). assisted programs).
S. 175/H.R. 685
On February 2, 2021, Senator Dick Durbin introduced S. 175, the Coronavirus Unemployment On February 2, 2021, Senator Dick Durbin introduced S. 175, the Coronavirus Unemployment
Benefits Tax Relief Act, which would Benefits Tax Relief Act, which would ~~exclude~~have excluded up to $10,200 of UI benefits per individual for the up to $10,200 of UI benefits per individual for the
purposes of federal income taxation for tax year 2020. Also on February 2, 2021, Representative purposes of federal income taxation for tax year 2020. Also on February 2, 2021, Representative
Cynthia Axne introduced H.R. 685, the House companion Cynthia Axne introduced H.R. 685, the House companion ~~bil~~ bill. The proposal in these two . The proposal in these two ~~bil s~~
bills was enacted under Section 9042 of ARPA (P.L. 117-2; enacted March 11, 2021). was enacted under Section 9042 of ARPA (P.L. 117-2; enacted March 11, 2021).
H.R. 3170
On May 12, 2021, Representative Brad Wenstrup introduced H.R. 3170, a proposal that would On May 12, 2021, Representative Brad Wenstrup introduced H.R. 3170, a proposal that would
~~address~~have addressed the situation of victims of identity theft related to UI fraud in tax years 2020 and the situation of victims of identity theft related to UI fraud in tax years 2020 and 2021. Specifically~~2021.~~
~~Specifical y~~, H.R. 3170 would , H.R. 3170 would ~~require~~have required the Commissioner of Internal Revenue, the Commissioner of Internal Revenue, collaborating with ~~collaborating with~~

~~53 For more background on this temporary tax exclusion on UI benefits, see CRS In Focus IF11782,~~ ~~Federal Taxation~~
~~of Unem ploym ent Insurance Benefits~~.
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~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

DOL, to hold taxpayers harmless if they believe they are victims of identity theft or had DOL, to hold taxpayers harmless if they believe they are victims of identity theft or had
fraudulent UI benefits claimed in their name and are flagged for unreported income. H.R. 3170 fraudulent UI benefits claimed in their name and are flagged for unreported income. H.R. 3170
would also would also ~~require~~have required states to report (via Form 1099–G) the amount of fraudulent UI benefits that states to report (via Form 1099–G) the amount of fraudulent UI benefits that
are excluded as income due to suspected or confirmed fraud. are excluded as income due to suspected or confirmed fraud.
Railroad UI (RRUI) Sequestration Exemption
S. 545/H.R. 2900
On March 2, 2021, Senator Rob Portman introduced S. 545, the Railroad Employee Equity and On March 2, 2021, Senator Rob Portman introduced S. 545, the Railroad Employee Equity and
Fairness (REEF) Act. On April 28, 2021, Representative Janice Schakowsky introduced the Fairness (REEF) Act. On April 28, 2021, Representative Janice Schakowsky introduced the
House companion House companion ~~bil~~ bill to S. 545: H.R. 2900. S. 545 and H.R. 2900 would permanently exempt to S. 545: H.R. 2900. S. 545 and H.R. 2900 would permanently exempt
railroad UI benefits from the BCA mandatory sequester, effective on the date prior to March 13, railroad UI benefits from the BCA mandatory sequester, effective on the date prior to March 13,
2020 (i.e., the date of the presidential declaration issued under the National Emergencies Act in 2020 (i.e., the date of the presidential declaration issued under the National Emergencies Act in
response to COVID-19).response to COVID-19).5459 59 For more information on railroad UI benefits, including the temporary exemption from sequestration for railroad UI benefits enacted under the Continued Assistance to Rail Workers Act of 2020 (CARWA; enacted under P.L. 116- Congressional Research Service 17 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session
Reemployment Services and Eligibility Assessments
H.R. 1763
On March 10, 2021, Representative Stephanie Murphy introduced H.R. 1763, the Building on On March 10, 2021, Representative Stephanie Murphy introduced H.R. 1763, the Building on
Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act. H.R. Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act. H.R.
1763 would extend RESEA eligibility1763 would extend RESEA eligibility to any claimant of unemployment benefits, including those to any claimant of unemployment benefits, including those
profiled as likelyprofiled as likely to exhaust benefits (rather than limiting eligibilityto exhaust benefits (rather than limiting eligibility to those who were profiled as to those who were profiled as
~~likely~~ likely to exhaust benefits). to exhaust benefits).
H.R. 1868
On March 12, 2021, Representative John Yarmuth introduced H.R. 1868. Section 3(c) of this On March 12, 2021, Representative John Yarmuth introduced H.R. 1868. Section 3(c) of this ~~bil~~ bill, ,
as introduced, would extend RESEA eligibilityas introduced, would extend RESEA eligibility to any claimant of unemployment benefits rather to any claimant of unemployment benefits rather
than limitingthan limiting ~~eligibility~~ eligibility only to those who were profiled as likely to exhaust benefits.only to those who were profiled as likely to exhaust benefits.5560 On March On March
19, 2021, the House agreed to H.R. 1868, including this language in Section 3(a). On March 25, 19, 2021, the House agreed to H.R. 1868, including this language in Section 3(a). On March 25,
2021, the Senate 2021, the Senate ~~agree~~agreed to an amended version of H.R. 1868 that to an amended version of H.R. 1868 that ~~does~~did not include the proposal not include the proposal
related to RESEA eligibility.related to RESEA eligibility. (While resolving differences, the RESEA eligibility(While resolving differences, the RESEA eligibility proposal was proposal was
dropped. H.R. 1868 was signed into law on April 14, 2021 as P.L. 117-7 and did not include the dropped. H.R. 1868 was signed into law on April 14, 2021 as P.L. 117-7 and did not include the
RESEA eligibilityRESEA eligibility proposal.) proposal.)
H.R. 2188
On March 26, 2021, Representative Kevin Brady introduced H.R. 2188, the Reopening America On March 26, 2021, Representative Kevin Brady introduced H.R. 2188, the Reopening America
by Supporting Workers and Businesses Act of 2021. Among other UI provisions, this by Supporting Workers and Businesses Act of 2021. Among other UI provisions, this ~~bil includes~~
bill included a RESEA proposal, which a RESEA proposal, which iswas the same as the expanded RESEA eligibility proposal under Section ~~the same as the expanded RESEA eligibility proposal under Section~~

~~54 For more information on railroad UI benefits, see CRS Report RS22350,~~ ~~Railroad Retirement Board: Retirement,~~
~~Survivor, Disability, Unem ploym ent, and Sickness Benefits~~.
~~55 T his is the same proposal that was included in the House-passed version of H.R. 1759 in the 116th Congress, the~~
~~Building on Reemployment Improvements to Deliver Good Employment for Workers Act (also introduced in the~~
~~Senate as S. 2872). Additionally, Section 3(a) of this bill, as introduced, would disregard MEUC payments from~~
~~income for the purposes of the Medicaid/Children’s Health Insurance Program, which would be the same as current~~
~~treatment of FP UC payments under current law.~~
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3(c) of H.R. 1868, as introduced and as described above. It would also accelerate a scheduled 3(c) of H.R. 1868, as introduced and as described above. It would also accelerate a scheduled
increase in funding for RESEA across upcoming fiscal years. increase in funding for RESEA across upcoming fiscal years.
H.R. 3154
On May 12, 2021, Representative Darin LaHood introduced H.R. 3154, the Building On May 12, 2021, Representative Darin LaHood introduced H.R. 3154, the Building on on
Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act. H.R. Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act. H.R.
3154 would extend RESEA eligibility3154 would extend RESEA eligibility to any claimant of unemployment benefits rather than to any claimant of unemployment benefits rather than
limitinglimiting ~~eligibility~~ eligibility only to those who were profiled as likely to exhaust benefits (as under H.R. only to those who were profiled as likely to exhaust benefits (as under H.R.
1763, H.R. 1868, and H.R. 2188). 1763, H.R. 1868, and H.R. 2188). ~~Additional y,~~ Additionally, this proposal would this proposal would ~~specifical y extend RESEA~~
~~eligibility~~ have specifically extended RESEA eligibility to any claimant receivingto any claimant receiving now-expired PUA or PEUC benefits. PUA or PEUC benefits.
UI Modernization and Program Integrity Proposals
The The ~~bil s~~bills summarized in this section would make changes to the permanent-law UC program. summarized in this section would make changes to the permanent-law UC program.
AdditionalAdditional program integrity measures that would program integrity measures that would ~~address~~have addressed CARES Act UI benefits (e.g., CARES Act UI benefits (e.g., ~~PUA)~~
260 on December 27, 2020), see CRS Report RS22350, Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits. 60 This was the same proposal that was included in the House-passed version of H.R. 1759 in the 116th Congress, the Building on Reemployment Improvements to Deliver Good Employment for Workers Act (also introduced in the Senate as S. 2872). Additionally, Section 3(a) of this bill, as introduced, would have disregarded MEUC payments from income for the purposes of the Medicaid/Children’s Health Insurance Program, which would have been the same as the treatment of FPUC payments prior to program expiration. Congressional Research Service 18 link to page 25 link to page 25 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session PUA), when authorized, are described below in the section on are described below in the section on “Further Amendments, Contractions, or Extensions to the
CARES Act and FFCRA.” ”
S. 723
On February 2, 2021, Representative On February 2, 2021, Representative ~~Bil~~ Bill Posey introduced H.R. 723, the Reducing Fraud in Posey introduced H.R. 723, the Reducing Fraud in
Unemployment Assistance Act. H.R. 723 would require that states compare a list of individuals Unemployment Assistance Act. H.R. 723 would require that states compare a list of individuals
receiving state UC benefits with a list of incarcerated individuals in federal and state custody for receiving state UC benefits with a list of incarcerated individuals in federal and state custody for
the purposes of investigating and prosecuting fraud, waste, and abuse. H.R. 723 would also the purposes of investigating and prosecuting fraud, waste, and abuse. H.R. 723 would also
~~provide~~have provided for the federal recovery of state overpayments of PUA and FPUC for the federal recovery of state overpayments of PUA and FPUC (now expired). .
S. 490/H.R. 1458
On March 1, 2021, Senator Ron Wyden introduced S. 490, the Unemployment Insurance On March 1, 2021, Senator Ron Wyden introduced S. 490, the Unemployment Insurance
Technology Modernization Act. Also on March 1, 2021, Representative Steven Horsford Technology Modernization Act. Also on March 1, 2021, Representative Steven Horsford
introduced H.R. 1458, the House companion introduced H.R. 1458, the House companion ~~bil~~ bill. This proposal would require DOL, in . This proposal would require DOL, in
consultation with relevant experts, to develop, operate, and maintain technology capabilities to consultation with relevant experts, to develop, operate, and maintain technology capabilities to
modernize the federal and state administration of UI benefits. It modernize the federal and state administration of UI benefits. It ~~sets~~set out a number of out a number of
specifications for these technology capabilities, including accessibility requirements for online UI specifications for these technology capabilities, including accessibility requirements for online UI
claim filing and requirements regarding automated decisions (i.e., to prevent biases). States would claim filing and requirements regarding automated decisions (i.e., to prevent biases). States would
be able to use only some of the modular components of the technology components, depending be able to use only some of the modular components of the technology components, depending
on their needs. This proposal on their needs. This proposal would also require~~also requires~~ a study to evaluate current UI technology needs. It a study to evaluate current UI technology needs. It
would also require DOL to conduct a pilot program on at least four states prior to deploying the would also require DOL to conduct a pilot program on at least four states prior to deploying the
new technology components to new technology components to al all states. states. ~~Final y~~Finally, this proposal , this proposal ~~establishes~~would establish a Digital a Digital Services Services
Team at DOL to assist in the development of these technology capabilities and to oversee their Team at DOL to assist in the development of these technology capabilities and to oversee their
~~maintenance and improvement by providing assistance to state UI agencies.~~
~~Further Amendments, Contractions, or Extensions to the CARES~~
~~Act and FFCRA~~
maintenance and improvement by providing assistance to state UI agencies. S. 2898 On September 29, 2021, Senator Todd Young introduced S. 2898, the Unemployment Insurance Systems Modernization Act. This bill would have added additional federal requirements for state UI administration. The new requirements would include state administrative capacity to  process certain surges in state and federal claims;  adjust UI benefit amounts and disregard earnings, including the ability to cap benefits at 100% wage replacement as well as the ability to reduce the benefit amount based upon duration of unemployment; and  automate the processing of claims under DUA, STC, and UI for former federal worker and former servicemembers. S. 2898 would also add new statutory requirements related to (1) the electronic transmission of UI data, including state reporting requirements on employer usage and (2) state use of certain data sources to confirm an individual’s eligibility for UC benefits, including the UC Integrity Data Hub (or comparable DOL data source) for cross-matching to “prevent and detect fraud and improper payments,” and the National Directory for New Hires (NDNH, administered by the U.S. Department of Health and Human Services). Finally, S. 2898 would provide authority for DOL to establish state performance goals, corrective action plans and consequences for states with sustained failure to meet goals, and incentive funds for high-performing states. It would expand the use of the $2 billion funding authorized under ARPA to include grants to states for the purposes of this proposal. Congressional Research Service 19 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session H.R. 6224 On December 9, 2021, Representative Josh Harder introduced H.R. 6224, the Fix the Unemployment Backlogs Act. H.R. 6224 would prohibit the payment of any UI administrative funding to states that had a backlog of at least 45,000 unprocessed UI claims. Under this proposal, unprocessed UI claims would be defined as any claim for which an initial eligibility determination has not been completed by the state within 21 days of filing by a claimant. Further Amendments, Contractions, or Extensions to the CARES Act and FFCRA (expired) H.R. 289 On January 13, 2021, Representative Jim Banks introduced H.R. 289, the Support Peaceful Protest Act. Along with addressing other, non-UI provisions, H.R. 289 would have made an individual ~~H.R. 289~~
~~On January 13, 2021, Representative Jim Banks introduced H.R. 289, the Support Peaceful~~
~~Protest Act. Along with addressing other, non-UI provisions, H.R. 289 would make an individual~~
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who is convicted of a federal offense related to conduct at or during a protest ineligible for FPUC who is convicted of a federal offense related to conduct at or during a protest ineligible for FPUC
or any other federal supplemental unemployment compensation during the COVID-19 public or any other federal supplemental unemployment compensation during the COVID-19 public
health emergency (e.g., health emergency (e.g., ~~LWA).~~Lost Wages Assistance [LWA]).61
S. 242/H.R. 805
On February 4, 2021, Senator Jack Reed introduced S. 242 and Representative Rose DeLauro On February 4, 2021, Senator Jack Reed introduced S. 242 and Representative Rose DeLauro
introduced H.R. 805, the Layoff Prevention Act of 2021. They would introduced H.R. 805, the Layoff Prevention Act of 2021. They would ~~extend~~have extended the temporary STC the temporary STC
provisions under the CARES Act, as amended. These provisions under the CARES Act, as amended. These ~~bil s would extend~~ bills would have extended the 100% federal the 100% federal
financing of STC in states with existing programs and 50% federal financing for states that set up financing of STC in states with existing programs and 50% federal financing for states that set up
STC programs for five years and six month after enactment.STC programs for five years and six month after enactment.5662 These These ~~bil s~~bills would also would also ~~provide~~have provided an an
additional $100 additional $100 ~~mil ion~~ million in STC grants to states and in STC grants to states and ~~extend~~extended the authority for DOL to make these the authority for DOL to make these
grants by three years (through December 31, 2026). grants by three years (through December 31, 2026).
H.R. 919
On February 8, 2021, Representative Sean Casten introduced H.R. 919, the Emergency On February 8, 2021, Representative Sean Casten introduced H.R. 919, the Emergency
Unemployment Relief for Nonprofits Act. H.R. 919 would have extended the federal funding for Unemployment Relief for Nonprofits Act. H.R. 919 would have extended the federal funding for
UC benefits paid to former employees of reimbursing employers (i.e., state and local UC benefits paid to former employees of reimbursing employers (i.e., state and local
governments, Indian tribes, and nonprofit organizations) under FFCRA through the end of governments, Indian tribes, and nonprofit organizations) under FFCRA through the end of
September 2021 and would have increased the federal funding percentage from 50% to 75%. September 2021 and would have increased the federal funding percentage from 50% to 75%.
(ARPA subsequently extended this temporary federal funding through September 4, 2021; and (ARPA subsequently extended this temporary federal funding through September 4, 2021; and
~~enacted the increased 75% funding, effective March 31, 2021.)~~
enacted the increased 75% funding, effective March 31, 2021.) 61 For information on LWA, see the Appendix in CRS Report R46687, Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic Response. 62 These companion bills were introduced prior to the enactment of ARPA and the extension of the temporary STC provision until September 4, 2021. Congressional Research Service 20 link to page 23 link to page 23 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session H.R. 934
On February 8, 2021, Representative Steven Horsford introduced H.R. 934, the Unemployed On February 8, 2021, Representative Steven Horsford introduced H.R. 934, the Unemployed
Worker Lifeline Act. H.R. 934 would Worker Lifeline Act. H.R. 934 would ~~extend~~have extended the FPUC authorization from weeks of the FPUC authorization from weeks of
unemployment ending on or before March 14, 2021, until weeks of unemployment ending on or unemployment ending on or before March 14, 2021, until weeks of unemployment ending on or
before October 3, 2021. H.R. 934 would also before October 3, 2021. H.R. 934 would also ~~increase~~have increased the FPUC amount from $300 per week to the FPUC amount from $300 per week to
$400 per week. $400 per week.
H.R. 1868
On March 12, 2021, Representative John Yarmuth introduced H.R. 1868. Section 3(a) of this On March 12, 2021, Representative John Yarmuth introduced H.R. 1868. Section 3(a) of this ~~bil~~ bill, ,
as introduced, would as introduced, would ~~disregard~~have disregarded MEUC payments from income for the purposes of the MEUC payments from income for the purposes of the
Medicaid/Children’s Health Insurance Program, which would Medicaid/Children’s Health Insurance Program, which would behave been the same as the same as ~~current~~ the treatment of treatment of
FPUC payments FPUC payments ~~under current law.57~~prior to program expiration.63 On March 19, 2021, the House agreed to H.R. 1868, On March 19, 2021, the House agreed to H.R. 1868,
including this language in Section 3(a). On March 25, 2021, the Senate agreed to an amended including this language in Section 3(a). On March 25, 2021, the Senate agreed to an amended
version of H.R. 1868 that version of H.R. 1868 that ~~does~~did not include the proposal related to treatment of MEUC payments. not include the proposal related to treatment of MEUC payments.
(While resolving differences, the MEUC payments proposal was dropped. H.R. 1868 was signed (While resolving differences, the MEUC payments proposal was dropped. H.R. 1868 was signed
into law on April 14, 2021, as P.L. 117-7 and did not include the MEUC payments proposal.) into law on April 14, 2021, as P.L. 117-7 and did not include the MEUC payments proposal.)
H.R. 2188/S. 1389
On March 26, 2021, Representative Kevin Brady introduced H.R. 2188, the Reopening America On March 26, 2021, Representative Kevin Brady introduced H.R. 2188, the Reopening America
by Supporting Workers and Businesses Act of 2021. On April 27, 2021, Senator Mike Crapo by Supporting Workers and Businesses Act of 2021. On April 27, 2021, Senator Mike Crapo

~~56 T hese companion bills were introduced prior to the enactment of ARPA and the extension of the temporary ST C~~
~~provision until September 4, 2021.~~
~~57 Additionally, Section 3(c) of this bill, as introduced, would have extended RESEA eligibility to any claimant of~~
~~unemployment benefits rather than limiting eligibility only to those who were profiled as likely to exhaust benefits.~~
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~~link to page 22 link to page 22~~ ~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

~~introduced the Senate companion bil :~~ introduced the Senate companion bill: S. 1389, the Back to Work Bonus Act. In addition to the S. 1389, the Back to Work Bonus Act. In addition to the
two RESEA proposals (described in the section on two RESEA proposals (described in the section on “Reemployment Services and Eligibility
Assessments””), this proposal would ), this proposal would ~~authorize~~have authorized one-time, lump-sum FPUC payments, or “back-to- one-time, lump-sum FPUC payments, or “back-to-
work bonuses” ($1,200 for full-time reemployed workers and $600 for part-time reemployed work bonuses” ($1,200 for full-time reemployed workers and $600 for part-time reemployed
workers), for individuals reemployed after being previously eligibleworkers), for individuals reemployed after being previously eligible for FPUC who met certain for FPUC who met certain
requirements. H.R. 2188 and S. 1389 would also requirements. H.R. 2188 and S. 1389 would also ~~reinstate~~have reinstated the federal work search requirement by the federal work search requirement by
removing the authority for COVID-19-related flexibilityremoving the authority for COVID-19-related flexibility for states authorized under FFCRA (P.L. for states authorized under FFCRA (P.L.
116-127). 116-127).
S. 1206
On April On April 19, 2021, Senator John Thune introduced S. 1206, the PUA Eligibility19, 2021, Senator John Thune introduced S. 1206, the PUA Eligibility Clarification Act Clarification Act
of 2021. S. 1206 would of 2021. S. 1206 would ~~make~~have made changes to PUA eligibility changes to PUA eligibility in two ways. First, this proposal would in two ways. First, this proposal would
~~remove~~have removed the statutory authority for DOL to establish additional criteria for PUA eligibility. the statutory authority for DOL to establish additional criteria for PUA eligibility. Second, Second,
S. 1206 would S. 1206 would ~~repeal~~have repealed DOL guidance issued on February 25, 2021, DOL guidance issued on February 25, 2021,~~58 that informs~~64 that informed states of states of
expanded PUA eligibilityexpanded PUA eligibility issued under existing statutory authority provided to DOL. under existing statutory authority provided to DOL.
H.R. 3104/S. 1555
On May 11, 2021, Representative Dusty Johnson introduced H.R. 3104 and Senator Roger On May 11, 2021, Representative Dusty Johnson introduced H.R. 3104 and Senator Roger
Marshal introduced S. 1555, the Get Americans Back to Work Act. H.R. 3104/S. 1555 would Marshal introduced S. 1555, the Get Americans Back to Work Act. H.R. 3104/S. 1555 would
~~terminate~~have terminated the program authority for the FPUC early, effective June 26, 2021 (rather than the program authority for the FPUC early, effective June 26, 2021 (rather than
63 Additionally, Section 3(c) of this bill, as introduced, would have extended RESEA eligibility to any claimant of unemployment benefits rather than limiting eligibility only to those who were profiled as likely to exhaust benefits. 64 See DOL, ETA, “Expanded Eligibility Provisions for the Pandemic Unemployment Assistance (PUA) Program,” UIPL No. 16-20, Change 5, February 25, 2021, at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3202. Congressional Research Service 21 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session September 4, 2021). H.R. 3104/S. 1555 also would have reduced~~September 4, 2021). H.R. 3104/S. 1555 would also reduce~~ the amount of the FPUC payable to the amount of the FPUC payable to
$150 a week (rather than $300 a week) beginning June 5, 2021, through the new termination date. $150 a week (rather than $300 a week) beginning June 5, 2021, through the new termination date.
S. 1557/H.R. 3316/H.R. 3495
On May 11, 2012, Senator Ben Sasse introduced S. 1557, the National Signing Bonus Act of On May 11, 2012, Senator Ben Sasse introduced S. 1557, the National Signing Bonus Act of
2021. There 2021. There ~~are~~were two House companion two House companion ~~bil s~~bills to S. 1557: on May 18, 2021, Representative Dan to S. 1557: on May 18, 2021, Representative Dan
Newhouse introduced H.R. 3316; and on May 25, 2021, Representative Mike Newhouse introduced H.R. 3316; and on May 25, 2021, Representative Mike ~~Gal agher~~Gallagher
introduced H.R. 3495. The National Signing Bonus Act of 2021 would introduced H.R. 3495. The National Signing Bonus Act of 2021 would ~~authorize~~have authorized states to make states to make
~~two~~ two $1,212 lump-sum payments to certain FPUC claimants lump-sum payments to certain FPUC claimants ~~who are~~if they were reemployed with a non- reemployed with a non-
governmental employer. The first governmental employer. The first ~~lump-sum~~ payment under this proposal would payment under this proposal would ~~be in the amount~~
~~of $1,212 and be available~~ have been available based on verified reemployment of at least four weeks for eligible based on verified reemployment of at least four weeks for eligible
individuals; the second individuals; the second ~~lump-sum payment would be in the same amount and be available~~ payment would have been available based based
on verified reemployment of at least eight weeks. These on verified reemployment of at least eight weeks. These back-to-work bonuses would only would only be
have been payable based on a reemployment period of four or eight weeks beginning prior to July 4, 2021. payable based on a reemployment period of four or eight weeks beginning prior to July 4, 2021.
H.R. 3148
On May 12, 2021, Representative Chris Jacobs introduced H.R. 3148, the Help Wanted Act. H.R. On May 12, 2021, Representative Chris Jacobs introduced H.R. 3148, the Help Wanted Act. H.R.
3148 would 3148 would ~~specify~~have specified that, as a condition of state agreements to administer FPUC/MEUC, PUA, that, as a condition of state agreements to administer FPUC/MEUC, PUA,
and PEUC, states and PEUC, states ~~may not~~ would not have been able to waive any federal UI requirements related to work search (i.e., under waive any federal UI requirements related to work search (i.e., under
the authority of Section 4102(b) of the Families First Coronavirus Response Act, P.L. 116-127). the authority of Section 4102(b) of the Families First Coronavirus Response Act, P.L. 116-127).
H.R. 3148 H.R. 3148 ~~would also remove~~also would have removed the statutory authority for the statutory authority for ~~individuals to be eligible for PUA~~PUA eligibility based based
on quitting a “job as a direct result of COVID–19,”on quitting a “job as a direct result of COVID–19,”5965 and would and would ~~add~~have added an an exclusion to PUA eligibility for any individual ~~exclusion to PUA~~

~~58 See DOL, ET A, “Expanded Eligibility Provisions for the Pandemic Unemployment Assistance (PUA) Program,”~~
~~UIPL No. 16-20, Change 5, February 25, 2021, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3202.~~
~~59 Section 2102(a)(3)(A)(ii)(I)(ii) of the CARES Act, as amended (15 U.S.C. §9021(a)(3)(A)(ii)(I)(ii)).~~
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~~eligibility for any individual~~ who “declines to work on the basis of safety concerns related to who “declines to work on the basis of safety concerns related to
COVID–19.” COVID–19.”
H.R. 3254
On May 14, 2021, Representative Barry Loudermilk introduced H.R. 3254, a On May 14, 2021, Representative Barry Loudermilk introduced H.R. 3254, a ~~bil~~ bill that would that would
have terminated~~terminate~~ the program authority for the FPUC early, effective May 29, 2021 (rather than the program authority for the FPUC early, effective May 29, 2021 (rather than
September 4, 2021). September 4, 2021).
H.R. 3266/S. 1712
On May 17, 2021, Representative Dan Bishop introduced H.R. 3266, the Jump-Start the On May 17, 2021, Representative Dan Bishop introduced H.R. 3266, the Jump-Start the
Economy with Jobs Act. On May 19, 2021, Senator Mike Braun introduced the Senate Economy with Jobs Act. On May 19, 2021, Senator Mike Braun introduced the Senate
companion companion ~~bil ,~~ bill, S. 1712. These S. 1712. These ~~bil s would amend~~bills would have amended the CARES Act to require that states notify the CARES Act to require that states notify
FPUC and PEUC claimants who FPUC and PEUC claimants who ~~have~~had been receiving FPUC or PEUC for more than 30 weeks been receiving FPUC or PEUC for more than 30 weeks
that the state workforce agency that the state workforce agency ~~wil~~ would attempt to confirm the individual’s current employment attempt to confirm the individual’s current employment
status from the previous employer (if status from the previous employer (if ~~stil~~ still in existence), including whether the individual’s in existence), including whether the individual’s
position position iswas unavailable unavailable ~~or is~~ or was available available but the individualbut the individual ~~has~~ had refused to return to work. If such an refused to return to work. If such an
~~individual has~~individual had been determined to have refused to return to work, under this proposal the been determined to have refused to return to work, under this proposal the
~~individual~~ individual would no longer would no longer behave been eligible eligible for FPUC or PEUC. 65 Section 2102(a)(3)(A)(ii)(I)(ii) of the CARES Act, as amended (15 U.S.C. §9021(a)(3)(A)(ii)(I)(ii)). Congressional Research Service 22 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session ~~for FPUC or PEUC.~~
H.R. 3268/S. 1699
On May 17, 2021, Representative Kevin Brady introduced H.R. 3268, the Combatting COVID On May 17, 2021, Representative Kevin Brady introduced H.R. 3268, the Combatting COVID
Unemployment Fraud Act of 2021. On May 19, 2021, Senator Mike Crapo introduced S. 1699, Unemployment Fraud Act of 2021. On May 19, 2021, Senator Mike Crapo introduced S. 1699,
the Senate companion the Senate companion ~~bil~~ bill with same name. H.R. 3268/S. 1699 would with same name. H.R. 3268/S. 1699 would ~~amend~~have amended the CARES Act to the CARES Act to
make several program integrity-related changes. These make several program integrity-related changes. These ~~bil s would require~~bills would have required states to verify the states to verify the
identity and eligibilityidentity and eligibility status of PUA applicants prior to paying benefits as status of PUA applicants prior to paying benefits as ~~wel~~ well as change the as change the
backdating deadline for PUA claims to Aprilbackdating deadline for PUA claims to April 1, 2021 (rather than December 1, 2020). H.R. 1, 2021 (rather than December 1, 2020). H.R.
3268/S. 1699 3268/S. 1699 ~~would also prevent~~also would have prevented any claimant from receiving a retroactive FPUC payment more any claimant from receiving a retroactive FPUC payment more
than 14 days after program expiration. In addition, H.R. 3268/S. 1699 would than 14 days after program expiration. In addition, H.R. 3268/S. 1699 would ~~reinstate~~have reinstated the federal the federal
work search requirement by removing the authority for COVID-19-related flexibility for states work search requirement by removing the authority for COVID-19-related flexibility for states
authorized under FFCRA (P.L. 116-127). authorized under FFCRA (P.L. 116-127).
~~Additional y, these bil s would add~~Additionally, these bills would have added a new statutory requirement that states use three specific data a new statutory requirement that states use three specific data
sources to confirm an individual’s eligibilitysources to confirm an individual’s eligibility for UC benefits: the State Information Data for UC benefits: the State Information Data
Exchange System (SIDES, administered by Information Technology Support Center [ITSC] and Exchange System (SIDES, administered by Information Technology Support Center [ITSC] and
DOL); the National Directory for New Hires (NDNH, administered by the Department of Health DOL); the National Directory for New Hires (NDNH, administered by the Department of Health
and Human Services); and the Prisoner Update Processing System (PUPS, administered by the and Human Services); and the Prisoner Update Processing System (PUPS, administered by the
Social Security Administration).Social Security Administration).6066
H.R. 3268/S. 1699 would H.R. 3268/S. 1699 would ~~address~~have addressed fraudulent payments in several ways, including by expanding fraudulent payments in several ways, including by expanding
the use of the $2 the use of the $2 ~~bil ion~~ billion funding authorized under ARPA to include grants to states for identity funding authorized under ARPA to include grants to states for identity
verification, prevention, and detection of fraud, and state efforts to recover fraudulent payments, verification, prevention, and detection of fraud, and state efforts to recover fraudulent payments,
including through criminal prosecution. As a condition of administering PUA, states including through criminal prosecution. As a condition of administering PUA, states ~~would also~~
bealso would have been required to submit a State Unemployment Fraud Recoupment plan to DOL. required to submit a State Unemployment Fraud Recoupment plan to DOL. These bills would have established~~These bil s would~~
~~establish~~ a COVID Unemployment Fraud Taskforce, led by the Secretary of Labor, Attorney a COVID Unemployment Fraud Taskforce, led by the Secretary of Labor, Attorney
General, and Secretary of the Department of Homeland Security, with $20 General, and Secretary of the Department of Homeland Security, with $20 ~~mil ion~~million in in
administrative funding. H.R. 3268/S. 1699 would also administrative funding. H.R. 3268/S. 1699 would also ~~authorize~~have authorized states to retain 5% of recovered states to retain 5% of recovered
fraudulent UI payments in 2020 and 2021 for use in administration and fraudulent UI payments in 2020 and 2021 for use in administration and improving program ~~improving program~~

~~60 States currently have the federal authority to use these data sources, but their use is not mandatory.~~
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integrity, including hiring fraud investigators. integrity, including hiring fraud investigators. ~~Final y, these bil s would provide~~Finally, these bills would have provided additional additional
protections for victims of UI fraud and identity theft, including victim assistance and an Internal protections for victims of UI fraud and identity theft, including victim assistance and an Internal
Revenue Service process to hold harmless individuals who Revenue Service process to hold harmless individuals who ~~experience~~ experienced UI fraud and identity theft. UI fraud and identity theft.
H.R. 3307
On May 18, 2021, Representative Kevin Hern introduced H.R. 3307, the Help Wanted Act. H.R. On May 18, 2021, Representative Kevin Hern introduced H.R. 3307, the Help Wanted Act. H.R.
3307, which would 3307, which would ~~terminate~~have terminated the program authority for the FPUC the program authority for the FPUC ~~early:~~ on the first Monday that on the first Monday that
iswas 14 days after enactment (rather than September 4, 2021). States 14 days after enactment (rather than September 4, 2021). States also would have been ~~would also be~~ prohibited from prohibited from
accepting applications for FPUC payments beginning on accepting applications for FPUC payments beginning on ~~or after~~the date of enactment. enactment.
H.R. 3479
On May 25, 2021, Representative Ted Budd introduced H.R. 3479, the Back to Work Bonus Act. On May 25, 2021, Representative Ted Budd introduced H.R. 3479, the Back to Work Bonus Act.
H.R. 3479 would H.R. 3479 would ~~authorize~~have authorized states to make one states to make one $900 lump-sum payment (a lump-sum payment (a back-to-work bonus) to ) to
certain FPUC claimants who certain FPUC claimants who ~~are~~were reemployed with a non-governmental employer for at least four reemployed with a non-governmental employer for at least four
weeks. These back-to-work bonuses would weeks. These back-to-work bonuses would behave been payable beginning August 14, 2021, and the prior payable beginning August 14, 2021, and the prior
authority for states to make weekly FPUC payments would authority for states to make weekly FPUC payments would ~~cease~~have ceased with respect to weeks of with respect to weeks of
unemployment after enactment. H.R. 3479 unemployment after enactment. H.R. 3479 ~~would also modify and restrict~~also would have modified and 66 States currently have the federal authority to use these data sources, but their use is not mandatory. Congressional Research Service 23 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session restricted (1) the COVID-19- (1) the COVID-19-
related conditions for PUA eligibilityrelated conditions for PUA eligibility and (2) the COVID-19-related work search flexibilities for and (2) the COVID-19-related work search flexibilities for
PEUC eligibility. PEUC eligibility.
H.R. 4013
On June 16, 2021, Representative Chip Roy introduced H.R. 4013, the Open for Business Act. On June 16, 2021, Representative Chip Roy introduced H.R. 4013, the Open for Business Act.
H.R. 4013 would H.R. 4013 would ~~end~~have ended the authorization for FPUC upon enactment, if earlier than the current the authorization for FPUC upon enactment, if earlier than the current
program expiration of September 4, 2021. program expiration of September 4, 2021.
H.R. 4015
On June 17, 2021, Representative Mikie On June 17, 2021, Representative Mikie ~~Sherril~~ Sherrill introduced H.R. 4015, the Strengthening introduced H.R. 4015, the Strengthening
Unemployment Programs to Provide Opportunities for Recovery and Training (SUPPORT) for Unemployment Programs to Provide Opportunities for Recovery and Training (SUPPORT) for
New Workers Act. H.R. 4015 would New Workers Act. H.R. 4015 would ~~create~~have created a “newly employed worker a “newly employed worker ~~al owance~~allowance” as an ” as an
amendment to the authority for states to administer FPUC/MEUC payments. This new worker amendment to the authority for states to administer FPUC/MEUC payments. This new worker
~~al owance would be~~allowance would have been payable to reemployed individuals payable to reemployed individuals who were previously eligible for FPUC who were previously eligible for FPUC
prior to enactment and prior to enactment and ~~remain~~remained employed through September 6, 2021. The employed through September 6, 2021. The ~~al owance would be~~
allowance would have been payable by states for up to nine weeks at $180 per week. States would payable by states for up to nine weeks at $180 per week. States would behave been able to issue this new able to issue this new
worker worker ~~al owance~~allowance as a one-time payment in the event that they as a one-time payment in the event that they ~~face administrative chal enges~~faced administrative challenges and were not able to ~~and~~
~~could not~~ implement it within three weeks of enactment. In scenarios in which an individual implement it within three weeks of enactment. In scenarios in which an individual
~~receives~~would have received a new worker a new worker ~~al owance~~allowance payment and then voluntarily payment and then voluntarily ~~separates~~separated from employment from employment
within six weeks of a payment, that individual would within six weeks of a payment, that individual would behave been ineligible ineligible for any additionalfor any additional UI benefits UI benefits
until the individualuntil the individual ~~repays~~ repaid the new worker the new worker ~~al owance~~allowance, unless the voluntary separation , unless the voluntary separation iswas due to due to
certain COVID-19-related conditions. certain COVID-19-related conditions.
H.R. 4190
On June 25, 2021, Representative On June 25, 2021, Representative ~~Michel e~~Michelle Steel introduced H.R. 4190, the Pandemic Steel introduced H.R. 4190, the Pandemic
Unemployment Assistance Fraud Protection Act. This Unemployment Assistance Fraud Protection Act. This ~~bil would require~~bill would have required states, as a condition of states, as a condition of
receiving any of the $2 receiving any of the $2 ~~bil ion~~ billion in additional UI administrative funding authorized under ARPA to in additional UI administrative funding authorized under ARPA to
“detect and prevent fraud, promote equitable access, and ensure the timely payment of benefits,” “detect and prevent fraud, promote equitable access, and ensure the timely payment of benefits,”
to submit a plan for recovering to submit a plan for recovering al all fraudulent PUA payments, establish an fraudulent PUA payments, establish an anti-fraud task force to ~~anti-fraud task force to~~
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~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

investigate and recover fraudulent PUA payments, and investigate and recover fraudulent PUA payments, and to report to DOL on the ratio of recovered report to DOL on the ratio of recovered
fraudulent PUA payments to total PUA payments. Failure to provide required reporting to DOL fraudulent PUA payments to total PUA payments. Failure to provide required reporting to DOL
would would ~~result~~have resulted in a state not having access to any temporary period of interest-free federal UI in a state not having access to any temporary period of interest-free federal UI
loans,loans,6167 if otherwise available, after the date of failure to provide such reporting. The Labor if otherwise available, after the date of failure to provide such reporting. The Labor
~~Secretary would also be~~Secretary also would have been required to provide state plans related to recovering required to provide state plans related to recovering al all fraudulent PUA fraudulent PUA
payments to Congress as payments to Congress as ~~wel~~ well as make monthly reports to UI committees of jurisdiction on state as make monthly reports to UI committees of jurisdiction on state
progress in recovering fraudulent PUA payments. This progress in recovering fraudulent PUA payments. This ~~bil would authorize $50 mil ion in~~
bill would have authorized $50 million in funding to the Attorney General in FY2022 and FY2023 for partnering with state anti-fraud task funding to the Attorney General in FY2022 and FY2023 for partnering with state anti-fraud task
forces and local law enforcement to assist in recovering fraudulent PUA payments. forces and local law enforcement to assist in recovering fraudulent PUA payments.
Under H.R. 4190, states would Under H.R. 4190, states would behave been required to repay the federal government in the amount of any required to repay the federal government in the amount of any
unrecovered PUA overpayment. Further, states that unrecovered PUA overpayment. Further, states that ~~fail~~failed to recover at least 75% of fraudulent PUA to recover at least 75% of fraudulent PUA
payments by December 31, 2022, would payments by December 31, 2022, would behave been subject to a federal processing fee equal to the subject to a federal processing fee equal to the
amount of unrecovered fraudulent PUA payments. The processing fee amount of unrecovered fraudulent PUA payments. The processing fee ~~would be~~ 67 For details on interest charges for federal loans to states, see CRS Report RS22954, The Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States. Congressional Research Service 24 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session would have been spread out over a spread out over a
five-year period beginning on January 1, 2023, and states would five-year period beginning on January 1, 2023, and states would behave been prohibited from reducing their prohibited from reducing their
UC benefit payments in response. UC benefit payments in response.
H.R. 4190 would also H.R. 4190 would also ~~amend~~have amended the CARES Act to require states to use certain data matching for the the CARES Act to require states to use certain data matching for the
purposes of fraud prevention, investigation, and prosecution, including matching with federal, purposes of fraud prevention, investigation, and prosecution, including matching with federal,
state, and local prisoner databases as state, and local prisoner databases as ~~wel~~ well as the E-Verify program. H.R. 4190 would as the E-Verify program. H.R. 4190 would ~~temporarily~~
~~increase~~have temporarily increased the penalties for fraud and identity theft with regard to PUA through December 31, 2021. the penalties for fraud and identity theft with regard to PUA through December 31, 2021.
H.R. 4190 would H.R. 4190 would ~~authorize~~have authorized up to 10% of the $2 up to 10% of the $2 ~~bil ion~~ billion in additional UI administrative funding in additional UI administrative funding
authorized under ARPAauthorized under ARPA ~~to be used by~~ for grants to states to establish a fraud hotline for reporting of UI-related states to establish a fraud hotline for reporting of UI-related
identity theft and to establish a database of incorrect 1099-G forms to be provided to the Internal identity theft and to establish a database of incorrect 1099-G forms to be provided to the Internal
Revenue Service. Revenue Service. ~~Final y~~Finally, H.R. 4190 would , H.R. 4190 would ~~require~~have required the Commissioner of Internal Revenue to the Commissioner of Internal Revenue to
issue a federal income tax refund promptly in a situation in which an individualissue a federal income tax refund promptly in a situation in which an individual ~~receives~~ received a 1099- a 1099-
G form incorrectly due to UI identity theft and G form incorrectly due to UI identity theft and ~~files~~filed a correction claim with their state. a correction claim with their state.
S. 2358
On July 15, 2021, Senator Thomas Carper introduced S. 2358, the Workforce Support and On July 15, 2021, Senator Thomas Carper introduced S. 2358, the Workforce Support and
~~Flexibility~~ Flexibility Act of 2021. S. 2358 would Act of 2021. S. 2358 would ~~amend~~have amended the CARES Act to the CARES Act to ~~al ow states to make~~allow states the option to establish FPUC FPUC
payments payments ~~of any amount~~to be less than $300 a week, but at least $1 a week, for weeks of less than $300 a week, but at least $1 a week, for weeks of
unemployment beginning after enactment through program expiration (i.e., September 4, 2021).unemployment beginning after enactment through program expiration (i.e., September 4, 2021).
S. 2742 On September 14, 2021, Senator John Thune introduced S. 2742, the Recovering Fraudulent Claims Act. S. 2742 would have established the COVID–19 Unemployment Insurance Fraud Task Force, which would have investigated fraud with respect to COVID-19 UI benefits, submitted its findings to the Attorney General, and provided certain preliminary findings to Congress within one year. S. 2742 would also have required the Government Accountability Office (GAO) to study how the ARPA grant funding to states was used to detect and prevent fraud and recover UI COVID-19 overpayments and to provide study findings to Congress within one year. H.R. 5285 On September 17, 2021, Representative Alexandria Ocasio-Cortez introduced H.R. 5285, the Extend Unemployment Assistance Act of 2021. H.R. 5285 would have reauthorized all temporary, expired COVID-19 UI authorities through January 2022, including the authorities for PUA, PEUC, FPUC, and MEUC as well as the other temporary measures. H.R. 5363 On September 24, 2021, Representative Ashely Hinson introduced H.R. 5363, the Back to Work Act. H.R. 5363 would require the Bureau of Labor Statistics, GAO, and the Small Business Administration to jointly conduct a study of the FPUC, PEUC, and PUA programs. This study would include analyses of the impact of these programs on UI claimants (e.g., work search, work engagement, earnings, duration of unemployment, receipt of other government benefits); businesses, especially small businesses (e.g., profits, sales, employment, and closures); and the economy (e.g., labor market metrics). This study would also include analyses of the demographics of UI claimants, program interactions between regular UC and PUA, issues related to PUA claims data, and the consequences of the early termination of COVID-19 UI benefits by states. Congressional Research Service 25 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session Additional Changes to Permanent Law UC Programs
H.R. 594
On January 28, 2021, Representative Tim Ryan introduced H.R. 594, the WORKER Act. Among On January 28, 2021, Representative Tim Ryan introduced H.R. 594, the WORKER Act. Among
other, non-UI provisions, H.R. 594 would require states to set up a reemployment bonus program, other, non-UI provisions, H.R. 594 would require states to set up a reemployment bonus program,
as approved by the Secretary of Labor, as part of their permanent law UC programs. The as approved by the Secretary of Labor, as part of their permanent law UC programs. The
reemployment bonus would be available to eligiblereemployment bonus would be available to eligible UC beneficiaries who are identified as likely UC beneficiaries who are identified as likely
to exhaust regular UC benefits, become reemployed within 12 weeks of an initialto exhaust regular UC benefits, become reemployed within 12 weeks of an initial UC claim, and UC claim, and
remain employed for at least 16 consecutive weeks. The amount of the reemployment bonus remain employed for at least 16 consecutive weeks. The amount of the reemployment bonus
payable would be 50% of the difference between the amount of UC payable to the claimant in a payable would be 50% of the difference between the amount of UC payable to the claimant in a
benefit year if unemployed the entire year minus the amount of UC payable to the claimant if benefit year if unemployed the entire year minus the amount of UC payable to the claimant if
reemployed within 12 weeks of an initialreemployed within 12 weeks of an initial ~~UC claim.~~

~~61 For details on interest charges for federal loans to states, see CRS Report RS22954,~~ ~~The Unemployment Trust Fund~~
~~(UTF): State Insolvency and Federal Loans to States~~.
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~~Unemployment Insurance: Legislative Issues in the 117th Congress~~

UC claim. H.R. 1620
On March 8, 2021, Representative Sheila Jackson Lee introduced H.R. 1620, the Violence On March 8, 2021, Representative Sheila Jackson Lee introduced H.R. 1620, the Violence
Against Women Act Reauthorization Act of 2021. Among many other provisions, Section 703 of Against Women Act Reauthorization Act of 2021. Among many other provisions, Section 703 of
H.R. 1620 would require states to consider an individual who quit employment because of sexual H.R. 1620 would require states to consider an individual who quit employment because of sexual
harassment, domestic violence, sexual assault, or stalking to be eligibleharassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits. This for UC benefits. This ~~bil~~
bill would also require that state personnel who process UI claims and hear UI appeals would also require that state personnel who process UI claims and hear UI appeals ~~are~~be trained in trained in
issues related to sexual harassment, domestic violence, sexual assault, and stalking, The House issues related to sexual harassment, domestic violence, sexual assault, and stalking, The House
~~passed H.R. 1620 on March 17, 2021.~~passed H.R. 1620 on March 17, 2021. S. 2865/H.R. 5507 On September 27, 2021, Senator Ron Wyden introduced S. 2865, the Unemployment Insurance Improvement Act. On October 8, 2021, Representative Don Beyer introduced H.R. 5507, the companion bill by the same name. S. 2865/H.R. 5507 would add new federal requirements related to benefits and eligibility for state UC programs. Specifically, S. 2865/H.R. 5507 would require  at least 26 weeks of UC benefits;  use of the alternative base period (i.e., the our most recent quarters of earnings for UC eligibility);  use of a minimum level of prior earnings (i.e., at least $1,000 in covered wages during the highest quarter of the base period and at least $1,500 in covered wages during the base period) for UC eligibility;  UC eligibility based on a definition of part-time employment as 20 hours of work a week or half of typical, previous hours a week; and  additional requirements related to UC benefit access (e.g., notification, standards for online claims filing, alternate option for claims filing, language access). Congressional Research Service 26 Unemployment Insurance: Legislative Issues in the 117th Congress, First Session

Author Information

Katelin P. Isaacs Katelin P. Isaacs
Julie M. Whittaker Julie M. Whittaker
Specialist in Income Security Specialist in Income Security
Specialist in Income Security Specialist in Income Security

Acknowledgments
Abigail Overbay, CRS Senior Research Librarian, made significant contributions to the research for this Abigail Overbay, CRS Senior Research Librarian, made significant contributions to the research for this
report. report.

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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