Emergency Unemployment Compensation
(EUC08): Current Status of Benefits
Julie M. Whittaker
Specialist in Income Security
Katelin P. Isaacs
Analyst in Income Security
November 18, 2013
Congressional Research Service
7-5700
www.crs.gov
R42444
CRS Report for Congress
Pr
epared for Members and Committees of Congress
Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Summary
The temporary Emergency Unemployment Compensation (EUC08) program may provide
additional federal unemployment insurance benefits to eligible individuals who have exhausted
all available benefits from their state Unemployment Compensation (UC) programs. Currently,
EUC08 benefits are available in all states except for North Carolina. Congress created the EUC08
program in 2008 and has amended the original, authorizing law (P.L. 110-252) 11 times.
The most recent extension of EUC08 in P.L. 112-240, the American Taxpayer Relief Act of 2012,
authorizes EUC08 benefits through the end of calendar year 2013. Under P.L. 112-240, the
potential duration of EUC08 benefits available to eligible individuals depends on state
unemployment rates. Figure A-1 provides the sequence, availability, and total maximum of all
unemployment benefits.
This report summarizes the structure of EUC08 benefits currently available through December
28, 2013 (December 29, 2013, for New York). It also provides the legislative history of the
EUC08 program.
Congressional Research Service
Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Contents
Introduction ...................................................................................................................................... 6
Emergency Unemployment Compensation ..................................................................................... 6
EUC08 Benefit Amounts, Tiers, and Duration .......................................................................... 6
Current EUC08 Benefit Availability ........................................................................................ 10
Current EUC08 Program Expiration ....................................................................................... 11
How Does an Eligible Individual Receive the EUC08 Benefit? ............................................. 11
How Much is an Eligible Individual’s Weekly EUC08 Benefit? ............................................ 11
How to Find Which Tiers are Available in a State ................................................................... 11
General EUC08 Eligibility Requirements ............................................................................... 11
Exhausted Regular UC Benefit ......................................................................................... 11
“20 Weeks” of Full-Time Insured Employment or Equivalent ......................................... 12
Reemployment and Eligibility Assessments ..................................................................... 12
Impact of State Actions to Reduce UC Payments ................................................................... 13
EUC08 Financing .................................................................................................................... 14
Interaction of EUC08 Benefits and Qualifying for a “Second Benefit Year”.......................... 14
Lapses in EUC08 Authorization .............................................................................................. 15
The Extended Benefit Program ...................................................................................................... 15
EB Program is Permanently Authorized .................................................................................. 16
EB Program Financing ............................................................................................................ 16
EUC08 and EB Interaction ...................................................................................................... 17
Which Benefit Is Paid First? ............................................................................................. 17
Figures
Figure 1. Benefits Available in Emergency Unemployment Compensation (EUC08), July
6, 2008-December 28, 2013.......................................................................................................... 9
Figure A-1. Current Sequence of Unemployment Benefits: UC, EUC08, and EB ........................ 18
Tables
Table 1. Summary of Emergency Unemployment Compensation (EUC08) Program:
Public Laws, Benefits, Effective Dates, and Financing ................................................................ 7
Table 2. Summary of EUC08 Program Authorization Lapses ....................................................... 15
Appendixes
Appendix. Availability and Sequence of Unemployment Benefits ................................................ 18
Contacts
Author Contact Information........................................................................................................... 18
Congressional Research Service
Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Congressional Research Service
Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Introduction
Various benefits may be available to unemployed workers to provide income support. When
eligible workers lose their jobs, the Unemployment Compensation (UC) program may provide up
to 26 weeks of income support through the payment of regular UC benefits.1 Unemployment
benefits may be extended for up to an additional 47 weeks by the temporarily authorized
Emergency Unemployment Compensation (EUC08) program. Unemployment benefits may be
extended for up to a further 13 or 20 weeks by the permanent Extended Benefit (EB) program
under certain state economic conditions.
This report provides a detailed legislative history as well as the current structure of the EUC08
program. For information on current legislative attempts to alter the EUC08 program, see CRS
Report R42936, Unemployment Insurance: Legislative Issues in the 113th Congress, by Julie M.
Whittaker and Katelin P. Isaacs. For information on the regular unemployment compensation
program, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits, by
Katelin P. Isaacs and Julie M. Whittaker.
Emergency Unemployment Compensation
On June 30, 2008, President George W. Bush signed the Supplemental Appropriations Act of
2008 (P.L. 110-252) into law. Title IV of this act created a new temporary unemployment
insurance program, the Emergency Unemployment Compensation (EUC08) program.2 This is the
eighth time Congress has created a federal temporary program that has extended unemployment
compensation during an economic slowdown.3 State UC agencies administer the EUC08 benefit
along with regular UC benefits and the permanently authorized EB program. The authorization
for this program expires the week ending on or before January 1, 2014. The last day of EUC08
availability is December 28, 2013 (December 29, 2013 for New York).
EUC08 Benefit Amounts, Tiers, and Duration
The amount of the EUC08 benefit is the equivalent of the eligible individual’s weekly regular UC
benefit and includes any applicable dependents’ allowances. Since the creation of the EUC08
program in June 2008, Congress has made several changes to the structure of the EUC08
program. These structural changes have consequences for the availability of EUC08 tiers and
benefits in states.
1 UC currently pays up to 26 weeks of benefits in most states. For information on states with a different maximum UC
duration, including states that have acted to reduce their UC maximum durations, see CRS Report R41859,
Unemployment Insurance: Consequences of Changes in State Unemployment Compensation Laws, by Katelin P.
Isaacs.
2 For information on legislative attempts in the 113th Congress to extend or expand the EUC08 program, see CRS
Report R42936, Unemployment Insurance: Legislative Issues in the 113th Congress, by Julie M. Whittaker and Katelin
P. Isaacs. For information on the regular unemployment compensation program, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
3 The other programs became effective in 1958, 1961, 1972, 1975, 1982, 1991, and 2002. For details on these
programs, see CRS Report RL34340, Extending Unemployment Compensation Benefits During Recessions, by Julie M.
Whittaker and Katelin P. Isaacs.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Table 1 provides a summary of how the EUC08 program has changed since it was first
authorized in 2008. Each row provides the public law that amended the original EUC08 program,
the corresponding EUC08 benefits available under that law, and the effective dates authorized by
that law. Figure 1 provides a flow chart of these changes.
Table 1. Summary of Emergency Unemployment Compensation (EUC08) Program:
Public Laws, Benefits, Effective Dates, and Financing
Public Law
Benefit Tiers and Availability
Dates in Effect and Financing
Supplemental Appropriations Act of
13 weeks (al states)
7/6/2008-3/28/2009
2008, Title IV Emergency
(No benefits past 7/4/2009)
Unemployment Compensation (P.L.
110-252), signed June 30, 2008
Funded by federal Emergency
Unemployment Compensation
Account (EUCA) funds within
Unemployment Trust Fund (UTF).
Unemployment Compensation
Tier I: 20 weeks (all states)
11/23/2008-3/28/2009
Extension Act of 2008 (P.L. 110-449),
Tier II: 13 additional weeks (33 weeks
(No benefits past 8/29/2009)
signed November 21, 2008
total) if state total unemployment rate
(TUR) is 6% or higher or insured
Funded by federal EUCA funds within
unemployment rate (IUR) is 4% or
UTF.
higher.
American Recovery and Reinvestment
Same as above.
2/22/2009-12/26/2009
Act of 2009 (P.L. 111-5), signed
(No benefits past 6/5/2010)
February 17, 2009
[Act included several other
interventions that augmented UC
Funded by general fund of the
benefits: the Federal Additional
Treasury. (Additionally, the FAC
Compensation (FAC) benefit of
program is funded by the general fund
$25/week; at state option, EB benefit
of the Treasury. The 100% financing of
year could be calculated based upon
the EB program is funded by the
exhausting EUC08 benefits; 100%
EUCA funds within the UTF.)
federal financing of EB program; and
the first $2,400 of unemployment
benefits were excluded from income
tax in 2009.]
Worker, Homeowner, and Business
Tier I: 20 weeks (all states)
11/8/2009-12/26/2009
Assistance Act of 2009 (P.L. 111-92),
Tier II: 14 additional weeks (34 weeks
(No benefits past 6/5/2010)
signed November 6, 2009
total, all states)
Tier III: 13 additional weeks if state
Funded by general fund of the
TUR is 6% or higher or IUR is 4% or
Treasury.
higher (47 weeks total)
Extended FUTA surtax through June
Tier IV: 6 additional weeks if state
2011. The estimated revenues
TUR is 8.5% or higher or IUR is 6% or
collected from FUTA surtax provision
higher (53 weeks total)
were $2.578 billion and offset the
estimated direct spending costs for
[Act included 1.5 year extension of the unemployment insurance provisions of
Federal Unemployment Tax Act
$2.42 billion.
(FUTA) surtax.]
Department of Defense Appropriations
Same as above.
12/27/2009-2/27/2010
Act, 2010 (P.L. 111-118), signed
(No benefits past 7/31/2010)
December 19, 2009
Funded by general fund of the
Treasury.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Public Law
Benefit Tiers and Availability
Dates in Effect and Financing
Temporary Extension Act of 2010 (P.L.
Same as above.
2/28/2010 (retroactive)—4/3/2010
111-144), signed March 2, 2010
(No benefits past 9/4/2010)
Funded by general fund of the
Treasury.
The Continuing Extension Act of 2010
Same as above.
4/4/2010 (retroactive)-5/29/2010
(P.L. 111-157), signed April 15, 2010
(No benefits past 11/6/ 2010)
Funded by general fund of the
Treasury.
The Unemployment Compensation
Same as above.
5/30/2010 (retroactive)-11/27/2010
Extension Act of 2010 (P.L. 111-205),
(No benefits past 4/30/2011)
signed July 22, 2010
[Note this did not include an
extension of the Federal Additional
Funded by general fund of the
Compensation (FAC) benefit of
Treasury.
$25/week for those receiving UC,
EUC08, EB, Disaster Unemployment
Assistance, or Trade Adjustment
Assistance. The FAC expired on June
2, 2010.]
The Tax Relief, Unemployment
Same as above.
11/28/2010 (retroactive)-12/31/2011
Insurance Reauthorization, and Job
(No benefits past 6/9/2012)
Creation Act of 2010 (P.L. 111-312),
signed December 17, 2010
Funded by general fund of the
Treasury.
The Temporary Payroll Tax Cut
Same as above.
1/1/2012-2/18/2012
Continuation Act of 2011 (P.L. 112-78),
(No benefits past 8/11/2012)
signed December 23, 2011
Funded by general fund of the
Treasury.
P.L. 112-78 included offsets; for
example, the auction of spectrum
licenses and increased federal
retirement contributions.
Middle Class Tax Relief and Job
Tier I: 20 weeks (all states)
2/19/2012-5/26/2012
Creation Act of 2012 (P.L. 112-96),
Tier II: 14 additional weeks (34 weeks
signed February 22, 2012
total, all states)
Funded by general fund of the
Tier III: 13 additional weeks if state
Treasury.
TUR is 6% or higher or IUR is 4% or
higher (47 weeks total)
Tier IV: 6 additional weeks if state
TUR is 8.5% or higher or IUR is 6% or
higher (53 weeks total); 16 weeks if no
EB and al other conditions met (63
weeks total)
Middle Class Tax Relief and Job
Tier I: 20 weeks (all states)
5/27/2012-9/1/2012
Creation Act of 2012 (P.L. 112-96),
Tier II: 14 additional weeks if TUR is
signed February 22, 2012
6% or higher (34 weeks total, all
Funded by general fund of the
states)
Treasury.
Tier III: 13 additional weeks if state
TUR is 7% or higher or IUR is 4% or
higher (47 weeks total)
Tier IV: 6 additional weeks if state
TUR is 9.0% or higher or IUR is 6% or
higher (53 weeks total)
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Public Law
Benefit Tiers and Availability
Dates in Effect and Financing
Middle Class Tax Relief and Job
Tier I: 14 weeks (all states)
9/2/2012-12/29/2012
Creation Act of 2012 (P.L. 112-96),
Tier II: 14 additional weeks if TUR is
(No benefits past 12/29/2012)
signed February 22, 2012
6% or higher (28 weeks total)
Tier III: 9 additional weeks if state
Funded by general fund of the
TUR is 7% or higher or IUR is 4% or
Treasury.
higher (37 weeks total)
Tier IV: 10 additional weeks if state
TUR is 9.0% or higher or IUR is 6%
(47 weeks total)
American Taxpayer Relief Act of 2012
Same as above.
12/30/2012 (retroactive)-12/28/2013
(P.L. 112-240), signed January 2, 2013
Funded by general fund of the
Treasury.
Source: Congressional Research Service, based on statutory provisions identified in the table.
Note: Because New York defines a week as a period from Monday through Sunday, the effective dates for New
York are one day later. For example, the EUC08 program first became active in all states except New York on
July 6, 2008. The EUC08 program first became active in New York on July 7, 2008.
Figure 1. Benefits Available in Emergency Unemployment Compensation (EUC08),
July 6, 2008-December 28, 2013
Source: Congressional Research Service.
Notes: Because New York defines a week as a period from Monday through Sunday, the effective dates for
New York are one day later than those shown above. For example, the EUC08 program first became active in all
states except New York on July 6, 2008. The EUC08 program first became active in New York on July 7, 2008.
The total unemployment rate (TUR) is the 13-week average ratio of unemployed workers to all workers
(employed and unemployed) in the labor market. The TUR is essentially a three-month average of the seasonally
adjusted unemployment rate for each state published by the Bureau of Labor Statistics from its Local Area
Unemployment Statistics (LAUS) data. It is possible to have tier III or tier IV available based upon a 13-week
average insured unemployment rate (IUR). These options are not depicted in this figure. The IUR is a program
based statistic: the ratio of Unemployment Compensation (UC) claimants to individuals in UC-covered jobs. The
ratio does not include those unemployed workers who are receiving EUC08 or EB payments, or any other type
of unemployed worker except those who are currently receiving regular UC benefits.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Current EUC08 Benefit Availability
The EUC08 program has been amended eleven times, most recently by P.L. 112-240.4 The
EUC08 benefit amount is equal to the eligible individual’s weekly regular UC benefits and
includes any applicable dependents’ allowances. The most recent modifications to the underlying
structure of the EUC08 program were made by P.L. 112-96. These modifications included
changes to the number of weeks available in each EUC08 tier as well as the state unemployment
rates required to have an active tier in that state. These requirements were implemented during
2012 in three separate phases. (See Figure 1.)
EUC08 benefits are no longer available in North Carolina. North Carolina enacted legislation in
February 2013 that included a provision to actively reduce UC weekly benefit amounts in the
state. Effective on or after July 1, 2013, this state law provision violated the “nonreduction” rule
and, therefore, terminated the EUC08 agreement between North Carolina and the Secretary of the
U.S. Department of Labor. 5
Since September 2012, the following weeks of benefits have been available in the tiers listed
below:
• Tier I is available in all states, except North Carolina, with up to 14 weeks of
EUC08 benefits provided to eligible individuals.
• Tier II is available if the state’s total unemployment rate (TUR)6 is at least 6%,
with up to 14 weeks provided to eligible individuals in those states (not available
in North Carolina).
• Tier III is available if the state’s TUR is at least 7% (or an insured
unemployment rate, IUR,7 of at least 4%), with up to 9 weeks of provided to
eligible individuals in those states (not available in North Carolina).
• Tier IV is if the state’s TUR is at least 9% or the IUR is 5%, with up to 10 weeks
provided to eligible individuals in those states (not available in North Carolina).
4 The eleven amendments are P.L. 110-449, P.L. 111-5, P.L. 111-92, P.L. 111-118, P.L. 111-144, P.L. 111-157, P.L.
111-205, P.L. 111-312, P.L. 112-78, P.L. 112-96, and P.L. 112-240. Summary details on all of these laws are provided
in Table 1 of this report.
5 For more information on the “nonreduction” rule of EUC08, see CRS Report R41859, Unemployment Insurance:
Consequences of Changes in State Unemployment Compensation Laws, by Katelin P. Isaacs.
6 The TUR is the ratio of unemployed workers to all workers (employed and unemployed) in the labor market. The
TUR is essentially a weekly version of the unemployment rate published by the Bureau of Labor Statistics (BLS) and
based on data from the BLS’ monthly Current Population Survey.
7 The IUR is the ratio of UC claimants divided by individuals in UC-covered jobs. The IUR is substantially different
from the TUR because it excludes several important groups: self-employed workers, unpaid family workers, workers in
certain not-for-profit organizations, and several other, primarily seasonal, categories of workers. In addition to those
unemployed workers whose last jobs were in the excluded employment, the insured unemployed rate excludes the
following: those who have exhausted their UC benefits (even if they receive EB or EUC08 benefits); new entrants or
reentrants to the labor force; disqualified workers whose unemployment is considered to have resulted from their own
actions rather than from economic conditions; and eligible unemployed persons who do not file for benefits.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Current EUC08 Program Expiration
All tiers of EUC08 benefits are temporary and expire in the week ending on or before January 1,
2014. Thus, on December 28, 2013 (December 29, 2013, for New York), the EUC08 program
ends. There is no “grandfathering” of any EUC08 benefit after that date.
How Does an Eligible Individual Receive the EUC08 Benefit?
An individual should contact his or her state’s unemployment agency to obtain specific
information on how to apply for and receive EUC08 benefits. The U.S. Department of Labor
maintains a website with links to each state’s agency at http://www.workforcesecurity.doleta.gov/
map.asp.
How Much is an Eligible Individual’s Weekly EUC08 Benefit?
The amount of the EUC08 benefit is the equivalent of the eligible individual’s weekly regular UC
benefit and includes any applicable dependents’ allowances.
How to Find Which Tiers are Available in a State
Each Monday the Department of Labor issues its “Emergency Unemployment Compensation
Trigger Notice” at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the
status column for tier II, tier III or tier IV within the notice is “on” for a particular state’s row, that
state is considered to be high unemployment for the purposes of that tier of EUC08 benefits. The
second to the last column, labeled “Tier Four Weeks Available,” lists the maximum potential
number of weeks available in tier IV for each state.
General EUC08 Eligibility Requirements
Exhausted Regular UC Benefit
The right to regular UC benefits must be exhausted to be eligible for EUC08 benefits.8 Although
federal laws and regulations provide broad guidelines on regular UC benefit coverage and
eligibility determination, the specifics of regular UC benefits are determined by each state. This
results in 53 different programs.9 In particular, states determine UC benefit eligibility, amount,
and duration through state laws and program regulations.10
8 Applicants must have been eligible for regular UC benefits and have exhausted their rights to regular UC with respect
to a benefit year that expired during or after the week of May 6, 2007. For most states, this would apply to individuals
who had filed UC claims with an effective date of May 7, 2006, or later. For the state of New York, this would apply to
original claims filed with an effective date of May 1, 2006, or later. Arkansas has a unique approach to calculating a
benefit year. In Arkansas, the benefit year begins the first day of the quarter in which an individual files a valid UC
claim. Thus, it is unlikely that many individuals in Arkansas who filed UC claims before July 2006 would have been
eligible to receive EUC08 benefits.
9 The 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands provide UC benefits to their workers.
10 For an overview of recent state law changes to UC duration and amount, see CRS Report R41859, Unemployment
Insurance: Consequences of Changes in State Unemployment Compensation Laws, by Katelin P. Isaacs.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Generally, regular UC eligibility is based on attaining qualified wages and employment in
covered work over a 12-month period (called a base period). Conditional on earnings amounts
and number of quarters worked in the base period, an individual may qualify for as little as one
week of UC benefits in some states and as many as 26 weeks in other states. Individuals with
higher earnings and multiple quarters of work history will generally receive higher UC benefits
for a longer period of time.11
“20 Weeks” of Full-Time Insured Employment or Equivalent
In addition to all state requirements for regular UC eligibility, the EUC08 program requires
claimants to have at least 20 weeks of full-time insured employment or the equivalent in insured
wages in their base period.
States use one, two, or three different methods for determining an “equivalent” to 20 weeks of
full-time insured employment. These methods are described in both law (§202(a)(5) of the
Extended Unemployment Compensation Act of 1970) and regulation (20 CFR 615.4(b)). In
practice, states that apply any of these three requirements for receipt of regular UC benefits and
do not allow for exceptions to those requirements do not need to establish that workers meet the
20 weeks of full-time insured employment requirement for the purposes of EUC. The three
methods are as follows:
• earnings in the base period equal to at least 1.5 times the high-quarter wages; or
• earnings in the base period of at least 40 times the most recent weekly benefit
amount, and if this alternative is adopted, it shall use the weekly benefit amount
(including dependents’ allowances) payable for a week of total unemployment
(before any reduction because of earnings, pensions or other requirements) that
applied to the most recent week of regular benefits; or
• earnings in the base period equal to at least 20 weeks of full-time insured
employment, and if this alternative is adopted, the term “full-time” shall have the
meaning provided by the state law.
The base period may be the regular base period or, if applicable in the state, the period may be the
alternative base period or the extended base period if that determined the regular UC benefit.
Reemployment and Eligibility Assessments
P.L. 112-96 amended EUC08 law to require states to provide reemployment and eligibility
assessments to most EUC08 claimants. EUC08 claimants must participate in reemployment
services if referred. States receive $85 in federal funding per EUC08 claimant who receives
reemployment and eligibility assessments (REAs).
11 Individuals in two states (Massachusetts and Montana) may have regular UC durations that exceed 26 weeks. EB law
requires that the total potential duration of UC and EB combined not exceed 39 weeks (46 weeks in the case of the high
unemployment TUR trigger). Thus, the total potential entitlement—from all unemployment programs, including UC,
EUC08, and EB—in these states is not any greater than in other states.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Impact of State Actions to Reduce UC Payments
States are temporarily prohibited from actively reducing UC benefit amounts through changes to
benefit calculation from February 2009 through December 2013 (this prohibition is referred to as
the “nonreduction” rule).12 The implementation of this “nonreduction” rule coincides with new
state actions that reduced UC benefit duration as an alternative means to decrease total UC
benefit payments.13 As a result, changes in state UC benefit duration may be a state response to a
state UC financing shortfall.
The duration for current federal unemployment benefits—each tier of the EUC08 program and
any EB periods—are calculated based on state UC benefit duration. Thus, states that have enacted
laws to reduce the duration of regular UC benefits have also reduced the duration of EUC08 and
EB benefits.
Currently, seven states have decreased maximum UC durations in effect after the “nonreduction”
rule was enacted:14
• Arkansas decreased its state UC maximum duration from 26 weeks to 25 weeks,
effective March 30, 2011.
• Florida decreased the maximum UC duration from 26 weeks to a variable
maximum duration, depending on the state unemployment rate and ranging from
12 weeks up to 23 weeks. Up to 12 weeks will be available if the state
unemployment rate is 5% or less. Each 0.5% increase in the state unemployment
rate above 5% will add an additional week of UC benefit duration. Finally, up to
23 weeks of regular UC benefits will be available if the state unemployment rate
is at least 10.5%. This benefit reduction was effective January 1, 2012.
• Georgia decreased its UC maximum duration from 26 weeks to a variable
maximum duration that ranges between 14 weeks and 20 weeks, depending on
the unemployment rate in the state. A maximum UC duration of 14 weeks will be
available if the state unemployment rate is 6.5% or less. Each 0.5% increase in
the state unemployment rate above 6.5% will add additional weeks of UC benefit
duration up to a maximum of 20 weeks of UC benefits if the state unemployment
rate is at least 9%.20 This benefit reduction was effective May 2, 2012.
• Michigan decreased its UC maximum duration from 26 weeks to 20 weeks. This
change was effective for individuals filing an initial claim for UC benefits on or
after January 15, 2012.
12 The “nonreduction” rule prohibits states from decreasing average weekly benefit amounts without invalidating their
EUC08 federal-state agreements. States that made changes to the regular UC benefit amount prior to March 1, 2012,
however, would not invalidate their EUC08 federal-state agreements under an exception provided in P.L. 112-96.
13 The current “nonreduction” rule was put into place when P.L. 111-205 amended P.L. 110-252. There was a similar,
but programmatically distinct “nonreduction” rule in P.L. 111-5, as amended, which prevented states from actively
changing the method of calculation of the UC weekly benefit amount to pay UC benefit amounts less than what would
have been paid under state law prior to December 31, 2008. No states acted to decrease UC benefit amounts between
December 31, 2008, and June 2, 2010, when the federal authorization for this earlier “nonreduction” rule expired.
14 For more details on these state law changes, see CRS Report R41859, Unemployment Insurance: Consequences of
Changes in State Unemployment Compensation Laws, by Katelin P. Isaacs.
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
• Missouri decreased its UC maximum duration from 26 weeks to 20 weeks,
effective April 13, 2011.
• North Carolina decreased the maximum UC duration from 26 weeks to a
variable maximum duration, depending on the state unemployment rate and
ranging from 12 weeks up to 20 weeks. Up to 12 weeks will be available if the
state unemployment rate is 5.5% or less. Each 0.5% increase in the state
unemployment rate above 5.5% will add an additional week of UC benefit
duration. Finally, up to 20 weeks of regular UC benefits will be available if the
state unemployment rate is greater than 9%. This benefit reduction is effective for
individuals filing an initial claim for UC benefits on or after July 1, 2013.
• South Carolina also decreased its UC maximum duration from 26 weeks to 20
weeks, effective June 14, 2011.
EUC08 Financing
Until February 16, 2009, the EUC08 program was federally financed from the extended
unemployment compensation account (EUCA) within the Unemployment Trust Fund (UTF).
Since February 2008 (with the passage of the 2009 stimulus package, P.L. 111-5), EUC08 has
been financed from general funds of the U.S. Treasury. States do not need to repay these funds.
Interaction of EUC08 Benefits and Qualifying for a
“Second Benefit Year”
The relationships between the various unemployment compensation programs currently
available—regular UC, EUC08, and EB—have meant that unemployed workers who participate
in additional paid work (while receiving benefits or temporarily stopping benefits) may create a
new entitlement to regular UC as part of a “second benefit year.” This new entitlement may be
based on significantly lower earnings or fewer hours of employment, which could then lower an
individual’s weekly unemployment benefits.
This situation exists because (1) the EUC08 and EB laws require individuals to exhaust all
regular UC benefits prior to being eligible to receive EUC08 or EB benefits and (2) after 52
weeks (i.e., after an individual’s first benefit year) states are required to begin checking for any
additional work performed by beneficiaries that would make them eligible for additional state UC
benefits before any additional EUC08 or EB benefits would be paid.
Because some eligible individuals in many states may have been entitled to more than 52 weeks
of UI benefits, states are required by federal law to identify individuals who established a new
entitlement to regular UC benefits via additional qualifying employment (even if the work was
part-time, seasonal, or low-pay and did not result in permanent employment). This potential new
entitlement means that states must shift back eligible individuals to regular UC (beginning a
second benefit year) from EUC08 and EB. The amount of the new regular UC benefits may be
significantly lower than the individual’s (first benefit year) EUC08 and EB benefits.
P.L. 111-205 addressed this “second year benefit” issue for the EUC08 program. It did not
address the equivalent issue in the EB program. Effective July 22, 2010, individuals who
currently receive EUC08 or EB benefits, but have been determined by states to be eligible for a
second benefit year based on additional work are allowed to opt to continue in the EUC08
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
program if their weekly unemployment benefits would be reduced by at least $100 or 25% by
switching back to the regular UC program based on their additional employment. Only
beneficiaries who are determined by their state to have a second benefit year after the date of
enactment are allowed this option. Those beneficiaries who were determined by their state prior
to July 22, 2010, to have a second benefit year entitlement do not have this option.
Lapses in EUC08 Authorization
Over the history of the temporary EUC08 program, there have been five lapses in program
authorization: February 27, 2010, to March 2, 2010; April 3, 2010, to April 15, 2010; June 2,
2010, to July 22, 2010; November 30, 2010, to December 17, 2010; and December 29, 2012 to
January 2, 2013.
Each of these lapses was addressed either in law, via retroactive effective dates of program
extension legislation for longer lapses, or through the administration of the program, in the case
of the shortest lapse (February 27, 2010-March 2, 2010). The longest of these authorization lapses
was 49 days (or 7 weeks), occurring between June 2, 2010, and July 22, 2010, and ending when
P.L. 111-205 was signed. The passage of P.L. 112-240 addressed the most recent lapse (December
29, 2012-January 2, 2013) and retroactively restored EUC08 program authorization. See Table 2
below for additional details on these authorization lapses.
Table 2. Summary of EUC08 Program Authorization Lapses
EUC08 Authorization
EUC08 Authorization
Number of Days
Legislation that
Lapse Beginning Date
Lapse Ending Date
Lapse Lasted
Ended Lapse
2/27/2010
3/2/2010
2
Temporary Extension Act of
2010 (P.L. 111-144)
4/3/2010 4/15/2010
11
The
Continuing
Extension
Act of 2010 (P.L. 111-157)
6/2/2010 7/22/2010
49
The
Unemployment
Compensation Extension Act
of 2010 (P.L. 111-205)
11/30/2010
12/17/2010
16
The Tax Relief,
Unemployment Insurance
Reauthorization, and Job
Creation Act of 2010 (P.L.
111-312)
12/29/2012
1/2/2013
3
The American Taxpayer
Relief Act of 2012 (P.L. 112-
240)
Source: Congressional Research Service.
The Extended Benefit Program
The EUC08 program should not be confused with the similarly named Extended Benefit (EB)
program.15 The EUC08 program is temporary and a portion of the program is available regardless
15 For a detailed description of the EB program, see CRS Report RL33362, Unemployment Insurance: Programs and
(continued...)
Congressional Research Service
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
of state unemployment conditions in all states except for North Carolina. In comparison, the EB
program is permanently authorized and applies only to certain states on the basis of state
unemployment conditions as specified in law.
Each Monday the Department of Labor issues its “Extended Benefit Trigger Notice” at
http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the “available weeks”
column within the notice has either 13 or 20 for a particular state’s row, that extended benefit
program is active in that state with a potential of up to 13 or 20 weeks of EB for its unemployed
workers.
When economic conditions in a state no longer meet the criteria for extended benefits, the EB
program becomes inactive. There is no “grandfathering” of the EB benefit. When a state EB
program becomes inactive, payment of all EB benefits stops immediately.
EB Program is Permanently Authorized
The EB program is permanently authorized by the Federal-State Extended Unemployment
Compensation Act of 1970 (EUCA), P.L. 91-373 (26 U.S.C. 3304, note). The EB program
provides for additional weeks of unemployment benefits, up to a maximum of 13 weeks during
periods of high unemployment and, at the option of each state, up to a maximum of 20 weeks in
certain states with extremely high unemployment.
EB Program Financing
Under EUCA, EB benefits are funded half (50%) by the federal government through an account
for that purpose in the Unemployment Trust Fund (UTF). States fund half (50%) through their
state accounts in the UTF.16
The American Recovery and Reinvestment Act of 2009, P.L. 111-5, provided for 100% federal
financing of the EB program through December 31, 2009 (through the Extended Unemployment
Compensation Account within the Unemployment Trust Fund). P.L. 111-118 extended the 100%
financing for an additional two months, until February 28, 2010. P.L. 111-144, P.L. 111-157, and
P.L. 111-205 further extended 100% federal financing of the EB program through April 5, 2010,
June 2, 2010, and December 1, 2010, respectively. P.L. 111-312 extended the 100% federal
financing of EB through January 4, 2012. P.L. 112-78 further extended the 100% federal
financing of EB through March 7, 2012. Most recently, P.L. 112-96 extended the 100% federal
financing through December 31, 2012. For individuals who began to receive extended benefits on
or before December 31, 2012, 100% federal financing would continue for the length of receipt of
the extended benefits, even if these benefits continue to be paid after December 31, 2012.17 For
(...continued)
Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
16 Under permanent law, states that do not require a one-week UC waiting period, or have an exception for any reason
to the waiting period, must pay 100% of the first week of EB. Twenty-five states do not require a one-week UC waiting
period in all cases. P.L. 110-449 temporarily suspended the waiting week requirement for federal funding, and the
American Recovery and Reinvestment Act of 2009 (P.L. 111-5), as amended, extends this suspension until the week
ending before June 30, 2014.
17 For more information on temporary changes to the EB program under the American Recovery and Reinvestment Act
of 2009, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits, by Julie M. Whittaker and
(continued...)
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
extended benefit payments that start after December 31, 2012, benefits would again be funded
50% by the states and 50% by the federal government.
EUC08 and EB Interaction
Which Benefit Is Paid First?
Prior to the enactment of P.L. 112-96, states were permitted to determine which benefit, EB or
EUC08, was paid first. Alaska was the only state to pay EB first when this option was available.
Since the enactment of P.L. 112-96, states now must pay EUC08 benefits before EB benefits.
(...continued)
Katelin P. Isaacs.
Congressional Research Service
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Appendix. Availability and Sequence of
Unemployment Benefits
Figure A-1. Current Sequence of Unemployment Benefits: UC, EUC08, and EB
Source: Congressional Research Service.
Author Contact Information
Julie M. Whittaker
Katelin P. Isaacs
Specialist in Income Security
Analyst in Income Security
jwhittaker@crs.loc.gov, 7-2587
kisaacs@crs.loc.gov, 7-7355
Congressional Research Service
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Emergency Unemployment Compensation (EUC08): Current Status of Benefits
Congressional Research Service
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