Order Code RS22022
Updated June 2, 2006
CRS Report for Congress
Received through the CRS Web
Disaster Unemployment Assistance (DUA)
Julie M. Whittaker
Analyst in Applied Microeconomics
Domestic Social Policy Division
Summary
The Disaster Unemployment Assistance (DUA) program provides monetary
assistance to individuals unemployed as a direct result of a major disaster and who are
not eligible for regular Unemployment Compensation (UC) benefits. DUA is funded
through the Federal Emergency Management Agency (FEMA). DUA is administered
by the Department of Labor (DOL) through each state’s UC agency. In the 109th
Congress, P.L. 109-176 was signed into law on March 6, 2006, extending the duration
of DUA benefits from 26 to 39 weeks for victims of the Hurricane Katrina and Rita
disasters. This extension ends on June 3, 2006, for those qualifying for benefits on
account of Hurricane Katrina and on June 24, 2006, for those affected by Hurricane Rita.
H.R. 5392 and S. 3030 both propose to extend the DUA benefits to a total of 52 weeks
for those affected by Hurricanes Katrina and Rita. This extension did not apply to any
subsequent major disasters. The report will be updated as events warrant.
The Unemployment Compensation (UC) system generally does not provide UC
benefits to the self-employed, to those who are unable to work, or to those who do not
have a recent earnings history. However, when the President declares a major disaster,
victims who would typically be ineligible for UC may be eligible for Disaster
Unemployment Assistance (DUA).1 DUA benefits are funded through the Disaster Relief
Fund administered by the Federal Emergency Management Agency (FEMA). The funds
are then transferred to the Department of Labor (DOL) and then distributed by DOL to
each affected state’s UC agency.2
DUA benefits are available only to those individuals who have become unemployed
as a direct result of a declared major disaster. First created in1970 through P.L. 91-606,
DUA benefits are authorized by the Robert T. Stafford Disaster Relief and Emergency
1 Authorization for DUA can be found in the Stafford Act, Section 410, P.L. 100-707, 42 USC
5177. Regulations can be found at 20 CFR 625.
2 For a description of FEMA, see CRS Report RL33064, Organization and Mission of the
Emergency Preparedness and Response Directorate: Issues and Options for the 109th Congress,
by Keith Bea.
Congressional Research Service ˜ The Library of Congress

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Relief Act (the Stafford Act), which authorizes the President to issue a major disaster
declaration after state and local government resources have been overwhelmed by a
natural catastrophe or, “regardless of cause, any fire, flood, or explosion in any part of the
United States” (42 U.S.C. 5122(2)). Based upon the request of the affected state’s
governor, the President may declare that a major disaster exists. The declaration identifies
the areas in the state eligible for assistance. The declaration of a major disaster provides
the full range of disaster assistance available under the Stafford Act, including, but not
limited to, the repair, replacement or reconstruction of public and non-profit facilities,
cash grants for the personal needs of victims, housing, and unemployment assistance
related to job loss from the disaster.
DUA Eligibility. The definition of an unemployed worker in the federal regulations
for DUA benefits differs from the definition used in the UC program for UC benefits. For
example, eligibility for DUA benefits does not necessarily require that the individual have
a substantial work history and in some cases does not require that the worker be available
for work (unlike the UC program requirements). In particular, the DUA regulation
defines eligible unemployed workers to include
! the self-employed;
! workers who experience a “week of unemployment” following the date
the major disaster began when such unemployment is a direct result of
the major disaster;
! workers unable to reach the place of employment as a direct result of the
major disaster;
! workers who were to begin employment and do not have a job or are
unable to reach the job as a direct result of the major disaster;
! individuals3 who have become the breadwinner or major support for a
household because the head of the household has died as a direct result
of the major disaster; and
! workers who cannot work because of injuries caused as a direct result of
the disaster.
Just as is the case in the state UC programs, workers who do not have permission to
work legally in the United States are not eligible for DUA benefits. Individuals must have
a social security number and an alien registration card number in order to apply for DUA
benefits.
Time Limit. Generally, applications must be filed within 30 days after the date the
state announces availability of DUA benefits. When applicants have good cause, they
may file claims after the 30-day deadline. This deadline may be extended. However,
initial applications filed after the 26th week following the declaration date will not be
considered.
Eligibility Clarification. On November 13, 2001, DOL issued a new interpretive
rule clarifying the definition of the phrase “unemployment as a direct result of the major
3 The survivor who becomes the head of household is not required to have wage credits and could
be eligible for DUA independent of whether the deceased household head would have been
eligible for UC benefits.

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disaster.” DOL issued this clarifying rule because the September 11, 2001, disasters
presented a number of exigencies not anticipated by the existing regulations. The action
by DOL amended 20 CFR §625.5 by adding a new paragraph (c) to read as follows:
§625.5 Unemployment caused by a major disaster.
(c) Unemployment is a direct result of the major disaster. For the purposes of
paragraphs (a)(1) and (b)(1) of this section, a worker’s or self employed individual’s
unemployment is a direct result of the major disaster where the unemployment is an
immediate result of the major disaster itself, and not the result of a longer chain of
events precipitated or exacerbated by the disaster. Such an individual’s
unemployment is a direct result of the major disaster if the unemployment resulted
from:
(1) physical damage or destruction of the place of employment;
(2) physical inaccessibility of the place of employment due to its closure by the
federal government, in immediate response to the disaster; or
(3) lack of work, or loss of revenues, provided that, prior to the disaster, the employer,
or the business in the case of a self-employed individual, received at least a majority
of its revenue or income from an entity that was either damaged or destroyed in the
disaster, or an entity closed by the federal government in immediate response to the
disaster.
Prior to the construction of this new rule, the phrase “unemployed as a direct result
of a major disaster” had never been defined in the regulations. Though DOL issued the
new clarifying rule in the wake of the September 11, 2001, disasters, the rule applies to
any subsequently declared major disasters. The rule is intended to make clear a
distinction between those individuals unemployed as an immediate result of the disaster
itself, and those whose unemployment may have been caused by a long chain of events
initiated by the disaster. The rule is also intended to exclude those individuals whose
unemployment is the result of general economic decline that has been an indirect effect
of a major disaster.
DUA Benefit Calculation. When a reasonable comparative earnings history can
be constructed, DUA benefits are determined in a similar manner to regular state UC
benefit rules. For example, self-employed persons would be expected to bring in their tax
records to prove a level of earnings for the previous two years. These records would take
the place of the employer-reported wage data for the workers that are used in UC benefit
determination. Likewise, workers who would otherwise be eligible for UC benefits
except for the injuries caused as a direct result of the disaster that make them unavailable
for work would receive DUA benefits of an amount equivalent to what they would have
received under the UC system if they were not injured and available to work. In all cases,
workers will receive a DUA benefit that is at least half of the average UC benefit for that
state and cannot receive more than the maximum UC benefit available in that state.
Workers who do not have enough of an employment history to qualify for UC
benefits (either as a new worker or as a recent hire), receive a DUA benefit equivalent to
half of the average UC benefit for that state. Unemployed workers could also be eligible
for reemployment services, which may include counseling and referrals to suitable work

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opportunities. DUA assistance is available to eligible individuals as long as the major
disaster continues, but no longer than 26 weeks after the disaster declaration.4
In the 107th Congress, P.L. 107-154 was signed into law on March 25, 2002,
extending the duration of DUA benefits from 26 to 39 weeks for victims of the September
11, 2001, terrorist attacks in the declared major disaster areas in New York and Virginia.
This was the first time legislation extended the duration of DUA benefits. This extension
did not apply to any subsequent major disasters. In the 109th Congress, P.L. 109-176 was
signed into law on March 6, 2006, extending the duration of DUA benefits from 26 to 39
weeks for victims of the Hurricane Katrina and Rita disasters. This extension will end on
June 3, 2006. This extension did not apply to any subsequent major disasters.
The maximum weekly benefit amount is determined under the provisions of the state
law for UC in the state where the disaster occurred. The minimum weekly DUA benefit
a worker may receive is half of the average weekly UC benefit for the state where the
disaster occurred.
Reduction in DUA Benefits. DUA benefits may be reduced by other income
received by the DUA beneficiary. These reductions are similar to the manner in which
this other income reduces UC benefits but do not necessarily mirror them exactly. The
reductions include
! benefits or insurance for loss of wages due to illness or disability;
! supplemental unemployment benefits paid pursuant to a collective
bargaining agreement;
! private income protection insurance;
! worker’s compensation or survivor’s benefits if the individual receiving
DUA becomes the household head as a result of the death of the head of
the household because of the disaster;
! retirement, pension, or annuity income;
! earnings from employment or self-employment; and

! subsidy or price support payments, crops insurance and farm disaster
relief payments.
Patterns in DUA Benefits. When a major disaster in a state is declared, the
state’s UC system requests DUA funds from DOL which in turn receives funds from the
Disaster Relief Fund administered by FEMA. The DOL obligates a portion of that request
to the state. The state may request more funding as a supplement if needed. Table 1 lists
the obligations (and supplements) for DUA benefits from FY2001 through FY2004.
4 In 1970, P.L. 91-606 required that DUA benefits not exceed the maximum amount and duration
of the state’s UC benefit. This generally required a duration of not more than 26 weeks. Section
407 of P.L. 93-288 in 1974 amended this requirement to a duration not to exceed one year. P.L.
100-707 lowered the maximum duration to 26 weeks.

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Table 1. Disaster Unemployment Assistance Obligations,
FY2001-FY2004
(millions of dollars)
Fiscal year
Obligations
2001
$18.546
2002
16.290
2003
14.876
2004
73.221
Source: Federal Emergency Management Agency.
Figure 1 plots the number of individuals who applied for DUA benefits (Initial
Claims) and the number of individuals who received DUA benefits for at least one week
(Initial Benefits) from January 2001 through April 2006. Just as is the case in the UC
program, more individuals apply than receive DUA benefits.
Figure 1. Disaster Unemployment Assistance: Initial Claims and First
Payments, January 2001- April 2006
80,000
Extension of Katrina and Rita DUA benefits
70,000
Hurricanes Katrina and Rita
60,000
Initial Claims
50,000
40,000
First Payments
30,000
20,000
September 11, 2001 disaster
10,000
Hurricanes Charley and Frances
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Source: CRS figure from data provided by U.S. Department of Labor, Office of Workforce Security.

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There is a seasonal element to claims and payments which centers around the
hurricane season (running from June 1 to November 30). The terrorist attacks of
September 11, 2001, were the major nonseasonal event during this period not attributable
to a natural (weather) disaster. The patterns of initial claims and first payments of DUA
benefits on account of the terrorist attacks differ from those in other disasters. Workers
continued to apply and receive benefits due to the terrorist attacks in substantial numbers
through March 2002. This was attributable to the extension of benefits for an additional
13 weeks provided by P.L. 107-154.
The data from Hurricane Katrina and Rita disasters overwhelm the other disasters
in the amount of benefits that were paid. The extension of DUA benefits for an additional
13 weeks allowed workers who would have originally been receiving UC benefits and had
exhausted them to file for DUA benefits. This creates a second wave of first filings and
initial claims in March 2006.
How to Find out If DUA Is Available for a Major Disaster in a State. To
determine if DUA is available in a state disaster victims must ascertain
! if the event has been declared a major disaster;
! in which counties (if any) individual assistance has been made available;
and
! how to contact the state UC agency.
FEMA maintains a website of disasters by calendar year, located at
[http://www.fema.gov/news/disasters.fema]. Each disaster is given a “contract number,”
which provides a link to relevant information pertaining to each disaster, including a list
of counties designated to receive assistance.
FEMA also provides reference maps indicating which counties have been designated
to receive individual, public, or hazard mitigation assistance. Subsequent amendments
to disaster declarations can be made to add jurisdictions eligible for assistance. If
counties in a state have been included in major disaster declarations and have been
designated to receive individual assistance, it is necessary to contact the state’s
unemployment agency to obtain the particulars of how to apply for and receive DUA
benefits. The DOL maintains a website with links to each state’s agency at
[http://www.workforcesecurity.doleta.gov/map.asp].
Legislative Developments for the 109th Congress. The Hurricane Katrina
disaster has stimulated interest in the DUA benefit.
On March 6, 2006, Congress enacted P.L. 109-176, the Katrina Emergency
Assistance Act of 2006. Section 2 of this law extended DUA benefits for persons eligible
for DUA benefits under the Robert T. Stafford Disaster Relief and Emergency Assistance
Act by reason of Hurricane Katrina for an additional 13 weeks. This extension expires
on June 3, 2006 (Katrina) and June 24, 2006 (Rita). H.R. 5392 and S. 3030 both propose
to extend these benefits for an additional 13 weeks, for a total of 52 weeks.

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