Disaster Unemployment Assistance (DUA)
Julie M. Whittaker
Specialist in Income Security
Alison M. Shelton
Analyst in Income Security
July 6, 2010
Congressional Research Service
7-5700
www.crs.gov
RS22022
CRS Report for Congress
P
repared for Members and Committees of Congress
Disaster Unemployment Assistance (DUA)
Summary
Disaster Unemployment Assistance (DUA) benefits are available only to those individuals who
have become unemployed as a direct result of a declared major disaster. First created in 1970
through P.L. 91-606, DUA benefits are authorized by the Robert T. Stafford Disaster Relief and
Emergency 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)).
The DUA program provides income support to individuals who become 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) and is
administered by the Department of Labor (DOL) through each state’s UC agency. The American
Recovery and Reinvestment Act of 2009 (P.L. 111-5, ARRA, or “the 2009 stimulus package”)
contained one provision affecting unemployment DUA benefits. ARRA temporarily increased
unemployment benefits by $25 per week for all recipients of regular UC, Extended Benefits (EB),
Emergency Unemployment Compensation (EUC08), Trade Adjustment Assistance (TAA)
programs, and DUA. DUA beneficiaries are not eligible to receive EUC08 benefits.
The Deepwater oil spill has not been declared a major disaster under the Stafford Act; thus,
workers who have lost their jobs on account of the spill are not eligible for DUA. On July 1,
2010, the House amended H.R. 4899, and that bill now includes language that would create a new
temporary unemployment assistance program for individuals who have lost their employment on
account of the oil spill.
This report contains information on how to ascertain if an individual is eligible for DUA benefits.
The report will be updated as events warrant.
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Disaster Unemployment Assistance (DUA)
Contents
DUA Eligibility........................................................................................................................... 1
Time Limit ............................................................................................................................ 2
Eligibility Clarification ......................................................................................................... 2
DUA Benefit Calculation ............................................................................................................ 3
Reduction in DUA Benefits......................................................................................................... 4
Patterns in DUA Benefits ............................................................................................................ 4
How to Find out If DUA Is Available for a Major Disaster in a State............................................ 5
Legislative Developments for the 111th Congress......................................................................... 6
Figures
Figure 1. Disaster Unemployment Assistance: Initial Claims and First Payments, January
2001- January 2010.................................................................................................................. 5
Tables
Table 1. Disaster Unemployment Assistance Benefit Payments, FY2004-FY2009 ....................... 4
Contacts
Author Contact Information ........................................................................................................ 6
Congressional Research Service
Disaster Unemployment Assistance (DUA)
isaster Unemployment Assistance (DUA) benefits are available only to those individuals
who have become unemployed as a direct result of a declared major disaster. First created
D in1970 through P.L. 91-606, DUA benefits are authorized by the Robert T. Stafford
Disaster Relief and Emergency 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.
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 DUA.1
DUA benefits are funded through the Disaster Relief Fund administered by the Federal
Emergency Management Agency (FEMA). The funds are transferred to the Department of Labor
(DOL) and then distributed by DOL to each affected state’s UC agency.2
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;
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 RL33053, Federal Stafford Act Disaster Assistance: Presidential
Declarations, Eligible Activities, and Funding, by Keith Bea.
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Disaster Unemployment Assistance (DUA)
• 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. Non-citizens 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 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
3 The survivor who becomes the head of household is not required to have wage credits and could be eligible for DUA
independently of whether the deceased household head would have been eligible for UC benefits.
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Disaster Unemployment Assistance (DUA)
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 from DUA those individuals whose unemployment is the result of general economic
decline that has been an indirect effect of a major disaster.
DUA Benefit Calculation
DUA benefits are generally calculated by state unemployment insurance agencies under the
provisions of the state law for unemployment insurance in the state where the disaster occurred.
The maximum weekly benefit amount is determined under the provisions of the state law. The
minimum weekly DUA benefit a worker may receive is half of the average weekly UC benefit for
the state where the disaster occurred. 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. P.L. 111-5, as amended, temporarily increases unemployment
benefits by $25 per week for all recipients of DUA. DUA beneficiaries are not eligible to receive
Emergency Unemployment Compensation (EUC08) benefits.
When a reasonable comparative earnings history can be constructed, DUA benefits are
determined in a similar manner to regular state UC benefit rules. Self-employed persons are
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 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 were available to work.
Workers who do not have a sufficient 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 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 ended on June 3, 2006, for those qualifying for benefits on account of Hurricane
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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Disaster Unemployment Assistance (DUA)
Katrina and on June 24, 2006, for those affected by Hurricane Rita. This extension did not apply
to any subsequent major disasters.
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 such additional income reduces UC benefits (e.g.,
all states disregard some earnings as an incentive to take short-term work while unemployed
workers search for a permanent job), but do not 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 the President declares a major disaster in a state, 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 shows DUA benefit payments from FY2004 through FY2009.
Table 1. Disaster Unemployment Assistance Benefit Payments, FY2004-FY2009
(millions of dollars)
Fiscal Year
Benefit Payments
2004 $7.4
2005 44.6
2006 401.1
2007 9.0
2008 7.0
2009 17.3
Source: Department of Labor.
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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 (First Payments) from
January 2001 through January 2010. 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- January 2010
80,000
Initial Applications
Extension of
70,000
First Payments
Katrina and Rita
DUA Benefits
60,000
Hurricanes Katrina
50,000
and Rita
40,000
Hurricane
30,000
Hurricanes Charley
and Frances
Ike
20,000
10,000
0
2
4
5
6
7
-01
-01
-02
-03
-03
-04
-05
-0
-06
-07
-08
-09
-09
-10
Jan
Jul
Jan-0 Jul
Jan
Jul
Jan-0 Jul
Jan-0 Jul
Jan
Jul
Jan-0 Jul
Jan
Jul-08 Jan
Jul
Jan
Source: CRS figure from data provided by U.S. Department of Labor, Office of Workforce Security
There is a seasonal element to claims and payments that centers on the hurricane season (running
from June 1 to November 30). The terrorist attacks of September 11, 2001, were the major non-
seasonal 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 stemming from 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 Hurricanes Katrina and Rita disasters overwhelm 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 whether DUA is available in a state, disaster victims must ascertain
• whether the President has declared the event a major disaster;
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Disaster Unemployment Assistance (DUA)
• for 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 a major disaster declaration 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 111th Congress
There has been no legislative activity directly affecting DUA benefits in the 111th Congress as of
this writing.
The Deepwater Oil spill has not been declared a major disaster under the Stafford Act; thus,
workers who have lost their job on account of the spill are not eligible for DUA. On July 1, 2010,
the House amended H.R. 4899 and that bill now includes language that would create a new
temporary unemployment assistance program for individuals who have lost their employment on
account of the oil spill.
Author Contact Information
Julie M. Whittaker
Alison M. Shelton
Specialist in Income Security
Analyst in Income Security
jwhittaker@crs.loc.gov, 7-2587
ashelton@crs.loc.gov, 7-9558
Congressional Research Service
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