Unemployment Insurance: Legislative Issues in June 11, 2020
the 116th Congress
Julie M. Whittaker
Responding to the Coronavirus Disease 2019 (COVID-19) pandemic and the resulting economic
Specialist in Income
recession, Congressional interest remains high in how to support workers and provide weekly
Security
income replacement for individuals who are unavailable to work or unemployed as a result of the
pandemic. The 116th Congress has created several new temporary unemployment insurance (UI)
Katelin P. Isaacs
benefits for workers unemployed because of the COVID-19 pandemic, as well as temporarily
Specialist in Income
modified permanent UI programs. Congress continues to consider additional modifications to
Security
both permanent law UI programs and the temporary new programs.
On March 18, 2020, President Trump signed P.L. 116-127 (H.R. 6201), the Families First
Coronavirus Response Act (FFCRA), into law. The UI provisions in the Families First
Coronavirus Response Act provide various types of assistance to states, including up to $1 billion in emergency
administrative grant funding in calendar year 2020 for administrative purposes. This law also removes through December
2020 the current incentive in UI law for states to have a waiting week for their regular UC programs.
On March 27, 2020, President Trump signed P.L. 116-136 (H.R. 748), the Coronavirus Aid, Relief, and Economic Security
Act (CARES) Act, into law. The UI provisions in the CARES Act inclu de expanded benefit eligibility to the self-employed,
independent contractors, gig economy workers, and other workers not covered under state UC programs through a new
temporary Pandemic Unemployment Assistance (PUA), which builds on DUA as a model and is authorized through
December 2020. Other provisions expanded potential weeks of UI benefits through the Pandemic Emergency Unemployment
Compensation (PEUC; authorized through December 2020) and also augment all UI benefits with an additional $600 weekly
Federal Pandemic Unemployment Compensation (FPUC) benefit through July 2020.
In the 116th Congress, policymakers have introduced the following additional legislation:
S. 165, H.R. 720, H.R. 725, H.R. 1117, and H.R. 4072—related to Unemployment Compensation for
Federal Employees (UCFE) benefits in response to the partial government shutdown that occurred during
FY2019;
S. 136 and H.R. 556—to provide self-employment and relocation assistance benefits;
H.R. 1121—to screen individuals for drug use;
H.R. 1585—to require that states consider an individual who quit employment because of sexual
harassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits ; and
H.R. 1759 and S. 2872—to amend Title III of the Social Security Act to extend Reemployment Services
and Eligibility Assessments (RESEA) to all UC claimants; and
H.R. 6199, H.R. 6207, H.R. 6271, H.R. 6379, H.R. 6582, H.R. 6680, H.R. 6695, H.R. 6800, H.R. 6805, S.
3476, S. 3482, S. 3497, S. 3523, S. 3534, S. 3619, and S. 3696—to amend 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.
For a brief overview of UC, see CRS In Focus IF10336, The Fundamentals of Unemployment Compensation. For an
overview of DUA, see CRS Report RS22022, Disaster Unemployment Assistance (DUA).
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Contents
Overview of Unemployment Insurance Programs................................................................. 1
Unemployment Compensation Program ........................................................................ 1
UC Financing ...................................................................................................... 2
Extended Benefit Program .......................................................................................... 3
Extended Benefit Triggers ..................................................................................... 3
H.R. 6800, Unemployment Insurance Benefits and the Sequester ........................................... 4
FY2019 Sequester of Unemployment Insurance Benefits ................................................. 4
FY2020 Sequester of Unemployment Insurance Benefits ................................................. 5
FY2021 Sequester of Unemployment Insurance Benefits ................................................. 5
Unemployment Insurance During a Government Shutdown ................................................... 6
State UC Loans and Solvency Concerns ............................................................................. 7
Reemployment Services and Eligibility Assessments ............................................................ 8
President’s Budget Proposal for FY2021 ............................................................................ 8
New Minimum Account Balance for State UTF Accounts ................................................ 9
Paid Family Leave Benefit .......................................................................................... 9
UI Program Integrity .................................................................................................. 9
Requirements to Use Particular Data Sources for Program Integrity ............................. 9
Additional Integrity Proposals ................................................................................ 9
New Final Rule on UC Drug Testing ................................................................................ 10
Enacted Laws in the 116th Congress ................................................................................. 11
P.L. 116-127, the Families First Coronavirus Response Act (FFCRA) .............................. 11
Administrative Grants to States ............................................................................ 11
Waives Certain UI Requirements for Benefits ......................................................... 12
Waives Interest Payments Due and Accrual of Interest on UTF Loans ........................ 12
Short-Time Compensation Assistance .................................................................... 12
Temporary 100% Federal Financing of EB for States Qualify for Full Division D
Administrative Grants ...................................................................................... 13
P.L. 116-136, the CARES Act .................................................................................... 13
Temporary, Additional $600 Weekly Federal Compensation (FPUC) .......................... 13
Temporary, Pandemic Unemployment Assistance (PUA) for Unemployed Persons
Not Covered by Regular UC Program ................................................................. 14
Temporary, 13-Week Extended Pandemic Emergency Unemployment
Compensation (PEUC) ..................................................................................... 15
Coordination of UI Benefits ................................................................................. 15
Other UI Provisions ............................................................................................ 16
Legislative Proposals in the 116th Congress ....................................................................... 20
Unemployment Compensation for Excepted Federal Employees During a
Government Shutdown .......................................................................................... 20
Self-Employment and Relocation Assistance Benefits ................................................... 20
Domestic Violence................................................................................................... 21
Drug Testing ........................................................................................................... 21
Reemployment Services and Eligibility Assessments..................................................... 21
UI Response to COVID-19 ............................................................................................. 22
H.R. 6199............................................................................................................... 22
H.R. 6207/S. 3476 ................................................................................................... 22
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H.R. 6271............................................................................................................... 22
H.R. 6379............................................................................................................... 22
S. 3482 .................................................................................................................. 23
S. 3497 .................................................................................................................. 23
S. 3523 .................................................................................................................. 23
S. 3534 .................................................................................................................. 23
Amendments, Contractions, or Extensions to the CARES Act and FFCRA ............................ 23
H.R. 6800............................................................................................................... 23
H.R. 6582............................................................................................................... 24
H.R. 6680/S. 3619 ................................................................................................... 24
H.R. 6695............................................................................................................... 25
H.R. 6805............................................................................................................... 25
S. 3696 .................................................................................................................. 25
Figures
Figure 1. Coordination of the Flow of UI Benefits Under the CARES Act.............................. 16
Tables
Table 1. DOL-Related Summary Information on Unemployment Insurance Provisions in
the CARES Act .......................................................................................................... 18
Contacts
Author Information ....................................................................................................... 25
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he unemployment insurance (UI) system has two primary objectives: (1) to provide
temporary, partial wage replacement for involuntarily unemployed workers and (2) to
T stabilize the economy during recessions. In support of these goals, several UI programs
provide benefits for eligible unemployed workers.
Overview of Unemployment Insurance Programs
In general, when eligible workers lose their jobs, the joint federal-state Unemployment
Compensation (UC) program may provide up to 26 weeks of income support through regular UC
benefit payments. UC benefits may be extended for up to 13 weeks or 20 weeks by the Extended
Benefit (EB) program if certain economic situations exist within the state.1 As of the date of this
publication, 50 states are in an active EB period, and two of those states additional y have
triggered ”on” a high unemployment period (HUP) where 20 weeks are available.2 For an
overview of EB, see the section on “Extended Benefit Program.”
Unemployment Compensation Program
The Social Security Act of 1935 (P.L. 74-271) authorizes the joint federal-state UC program to
provide unemployment benefits. Most states provide up to a maximum of 26 weeks of UC
benefits.3 Former federal workers may be eligible for unemployment benefits through the
Unemployment Compensation for Federal Employees (UCFE) program.4 Former U.S. military
servicemembers may be eligible for unemployment benefits through the Unemployment
Compensation for Ex-Servicemembers (UCX) program.5 The Emergency Unemployment
Compensation Act of 1991 (P.L. 102-164) provides that ex-servicemembers be treated the same
as other unemployed workers with respect to benefit levels, the waiting period for benefits, and
benefit duration.
Although federal laws and regulations provide broad guidelines on UC benefit coverage,
eligibility, and determination, the specifics regarding UC benefits are determined by each state.
1 For detailed information on each of these programs, see CRS Report RL33362, Unemployment Insurance: Programs
and Benefits. Certain groups of workers may qualify for income support from additional unemployment insurance (UI)
programs, including T rade Adjustment Assistance (T AA), Reemployment Trade Adjustment Assistance (RT AA), and
Disaster Unemployment Assistance (DUA). Workers who lose their jobs because of international competition may
qualify for income support through the T AA program or the RT AA (for certain workers aged 50 or older). Workers
may be eligible to receive DUA benefits if they are not eligible for regular Unemployment Compensation (UC) and
their unemployment may be directly attributed to a declared natural disaster. For more information on the T AA and
RT AA programs, see CRS In Focus IF10570, Trade Adjustm ent Assistance for Workers (TAA).
2 For the current Extended Benefit (EB) trigger notice, select “Extended Benefits T rigger Notice” at
https://oui.doleta.gov/unemploy/claims_arch.asp. For information on the expired Emergency Unemployment
Compensation 2008 (EUC08) program, which provided additional unemployment benefits depending on state
economic conditions from July 2008 to December 2013, see CRS Report R42444, Em ergency Unem ployment
Com pensation (EUC08): Status of Benefits Prior to Expiration.
3 For more details on these states with less than 26 weeks of UC available, see CRS Report R41859, Unemployment
Insurance: Consequences of Changes in State Unem ploym ent Com pensation Laws, Unemployment Insurance:
Consequences of Changes in State Unemployment Compensation Laws. In addition, the maximum UC duration is 28
weeks in Montana and 30 weeks (if local economic conditions are met) in Massachusetts. When EB benefits are
available in Montana, the total duration of UC and EB is capped at either 39 weeks (26 + 13) or 46 weeks (26 + 20).
When EB benefits are available in Massachusetts, the maximum duration of UC benefits is capped at 26 weeks.
4 5 U.S.C. §§8501-8508.
5 5 U.S.C. §§8521-8525. For more information on the Unemployment Compensation for Ex -Servicemembers (UCX)
program, see CRS Report RS22440, Unem ploym ent Com pensation (Insurance) and Military Service.
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Unemployment Insurance: Legislative Issues in the 116th Congress
This results in essential y 53 different programs.6 In general, UC eligibility is based on attaining
qualified wages and employment in covered work over a 12-month period (cal ed a base period)
prior to unemployment. Al states require a 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 to receive
any UC benefits. The methods states use to determine eligibility vary greatly. Most state benefit
formulas replace approximately half of a claimant’s average weekly wage up to a weekly
maximum.7 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 work, and actively
seeking work.8 These eligibility requirements help ensure that UC benefits are directed toward
workers with significant labor market experience and who are unemployed because of economic
conditions.
UC Financing
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).9 The 0.6%
effective net FUTA tax employers pay on the first $7,000 of each employee’s earnings (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 employment
services.10
Federal law limits employers’ SUTA taxes to funding regular UC benefits and the state share
(50%) of EB payments. Federal law requires that the state tax be on at least the first $7,000 of
each employee’s earnings and that the maximum state tax rate be at least 5.4%. Federal law also
requires each employer’s state 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 accounts within the Unemployment Trust
Fund (UTF).
6 T he District of Columbia, Puerto Rico, and the Virgin Islands are considered to be states under UC law.
7 For details on UC eligibility and benefits, see CRS Report RL33362, Unemployment Insurance: Programs and
Benefits.
8 In some cases a worker may be eligible for benefit based upon quitting a job for a “good cause” reason. In all states,
individuals who leave their work voluntarily must meet the state’s good cause requirements if they are not to be
disqualified from receiving UC. In many states, good cause is explicitly restricted to reasons connected with the work,
attributable to the employer, or involving fault on the part of the employer. (For those states, see T able 5.5 in U.S.
Department of Labor (DOL), 2017 Com parison of State Unem ployment Insurance Laws, available at
https://workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2017/nonmonetary.pdf.)
9 23 U.S.C. §§3301-11.
10 T he Federal Unemployment Tax Act (FUT A) 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 federal 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 how delinquent loans affect the net FUT A tax are in CRS Report RS22954,
The Unem ploym ent Trust Fund (UTF): State Insolvency and Federal Loans to States, T he Unemployment T rust Fund
(UT F): State Insolvency and Federal Loans to States.
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Unemployment Insurance: Legislative Issues in the 116th Congress
Extended Benefit Program
The EB program was established by the Federal-State Extended Unemployment Compensation
Act of 1970 (EUCA; P.L. 91-373) (26 U.S.C. §3304, note). EUCA may extend receipt of
unemployment benefits (extended benefits) at the state level if certain economic conditions exist
within the state. As of the date of this publication, EB is active in 48 states.11
Extended Benefit Triggers
The EB program is triggered “on” when a state’s insured unemployment rate (IUR) or total
unemployment rate (TUR) reaches certain levels.12 Al 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
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
the EB trigger options, it would provide the following:
Option 1—based upon the IUR
up to an additional 13 weeks of benefits if the state’s IUR is at least 6%,
regardless of previous years’ averages.
Option 2—based upon the TUR
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
either of the previous two years.
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; designated as a HUP for EB.
EB benefits are not “grandfathered” (phased out) when a state triggers “off” the program. When a
state triggers off of an EB period, al EB benefit payments in the state cease immediately,
regardless of individual entitlement.13
11 For the current EB trigger notice, select “Extended Benefits T rigger Notice” at https://ows.doleta.gov/unemploy/
claims_arch.asp.
12 T he total unemployment rate (T UR) is the three-month average of the ratio of unemployed workers to all workers
(employed and unemployed) in the labor market. T he T UR is essentially a three-month average version of the
unemployment rate published by the Bureau of Labor Statistics (BLS) and based on data from the BLS’s monthly
Current Population Survey (CPS). T he insured unemployment rate (IUR) is the ratio of UC claimants divided by
individuals in UC-covered jobs. In addition, the IUR uses a different base of workers in its calculations as compared
with the T UR. T he IUR excludes several groups used in T UR calculations: 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 jo bs were in the excluded employment category, the IUR excludes
the following: those who have exhausted their UC benefits (even if they are receiving EB 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. As a
result, the IUR in a state is often calculated to be much lower than its T UR.
13 EB benefits on interstate claims are limited to two extra weeks unless both the worker’s state of residence (e.g.,
T exas) and the worker’s state of previous employment (e.g., Louisiana) are in an EB period.
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The EB benefit amount is equal to the eligible individual’s weekly regular UC benefits. Under
permanent law, FUTA finances half (50%) of the EB payments and 100% of EB administrative
costs.14 States fund the other half (50%) of EB benefit costs through their SUTA.15
Section 4105 of P.L. 116-127 (H.R. 6201), the Families First Coronavirus Response Act
(FFCRA), temporarily makes EB 100% federal y financed (with the exception of “non-sharable”
compensation [e.g., state and local workers]) from enactment until the end of December 2020,
only for states that receive both halves of the emergency administrative grants authorized under
FFCRA (for a description of these grants, see “Administrative Grants to States”).16
H.R. 6800, Unemployment Insurance Benefits and
the Sequester
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), affected some but not al
types of UI expenditures.17 Regular UC, UCX, and UCFE payments are not subject to the
sequester reductions. EB and most forms of administrative funding are subject to the sequester
reductions.18
FY2019 Sequester of Unemployment Insurance Benefits
The FY2019 sequestration order requires a 6.2% reduction in al nonexempt nondefense
mandatory expenditures, but no sequestration reductions are applicable to discretionary programs,
projects, and activities.19 As a result, EB expenditures are required to be reduced 6.2% (only on
14 T he T ax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, P.L. 111-312, as amended
(the final time by P.L. 112-240), made technical changes to certain triggers in the EB program. See CRS Report
R41859, Unem ploym ent Insurance: Consequences of Changes in State Unem ploym ent Com pensation Laws. T he
authorization for the temporary EB trigger modifications expired the week ending on or before December 31, 2013.
15 P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (most recently amended by P.L. 112-240, the
American T axpayer Relief Act of 2012), temporarily changed the federal-state funding arrangement for the EB
program. T he FUT A financed 100% of EB benefits from February 17, 2009, through December 31, 2013. T he one
exception to the 100% federal financing was for those “ non-sharable” EB benefits (work not subject to FUT A taxes
such as state and local government employment ). T hose non-sharable benefits continued to be 100% financed by the
former employers.
16 As of June 11, 2020, according to DOL, all states have met the criteria for receiving these FFCRA grants (see
https://oui.doleta.gov/unemploy/pdf/IC3MOmarch.pdf). All states have requested their full allotment with the
exception of Puerto Rico, which had not requested the second allotment. Email from Employment and T rainin g
Administration analyst, June 11, 2020.
17 See CRS Report R42972, Sequestration as a Budget Enforcement Process: Frequently Asked Questions.
18 EUC08, when it was available (including any benefit payments delayed from prior fiscal years) is also subject to the
sequester reductions. See CRS Report R43133, The Im pact of Sequestration on Unem ployment Insurance Benefits:
Frequently Asked Questions for additional information on the impact of sequestration on UI benefits, generally, and
specifically for sequestration in FY2013 and FY2014. Please see CRS Report R43993, Unem ployment Insurance:
Legislative Issues in the 114th Congress for additional information on the implications of the sequester order for
FY2015 and FY2016. Please see CRS Report R44836, Unem ployment Insurance: Legislative Issues in the 115th
Congress for additional information on the implications of the sequester order for FY2017 and FY2018.
19 Office of Management and Budget (OMB), OMB Sequestration Preview Report to the President and Congress for
Fiscal Year 2019, February 12, 2018, at https://www.whitehouse.gov/wp-content/uploads/2018/02/
Sequestration_Report_February_2018.pdf.
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the federal share of EB benefits) for weeks of unemployment during FY2019.20 EB was not
activated in any state during FY2019.21
FY2020 Sequester of Unemployment Insurance Benefits
The FY2020 sequestration order requires a 5.9% reduction in al nonexempt nondefense
mandatory expenditures, but no sequestration reductions are applicable to discretionary programs,
projects, and activities.22 As a result, EB expenditures are required to be reduced 5.9% (only on
the federal share of EB benefits) for weeks of unemployment during FY2020.23
Additional y, the temporary UI benefits created under the CARES Act (see the “P.L. 116-136, the
CARES Act” section, below) are not specifical y excluded from sequestration. However, the
Office of Management and Budget (OMB) released the FY2020 mandatory sequester order prior
to the enactment of the CARES Act.24 Thus, the CARES Act UI benefits are not subject to the
FY2020 mandatory sequester order.
FY2021 Sequester of Unemployment Insurance Benefits
The FY2021 sequestration order requires a 5.7% reduction in al nonexempt nondefense
mandatory expenditures, but no sequestration reductions are applicable to discretionary programs,
projects, and activities.25 As a result, EB expenditures are required to be reduced 5.7% (only on
the federal share of EB benefits) for weeks of unemployment during FY2021.26
As in FY2020, although the temporary UI benefits created under the CARES Act are not
specifical y excluded from sequestration, OMB released the FY2021 mandatory sequester order
prior to the enactment of the CARES Act.27 Thus, the CARES Act UI benefits are not subject to
the FY2021 mandatory sequester order.
20 For details, see U.S. Department of Labor (DOL), Employment and T raining Administration (ETA), Unemployment
Insurance Program Letter, UIPL 1-19, December 12, 2018, at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=
4536.
21 For the current EB trigger notice, select “Extended Benefits T rigger Notice” at https://oui.doleta.gov/unemploy/
claims_arch.asp.
22 OMB, OMB Sequestration Preview Report to the President and Congress for Fiscal Year 2020, March 18, 2019, at
https://www.whitehouse.gov/wp-content/uploads/2019/03/sequestration_preview_March_18_2019.pdf.
23 For details, see DOL, ET A, Unemployment Insurance Program Letter (UIPL) No. 18-19, September 16, 2019, at
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5955.
24 T he FY2020 Sequestration Order was issued by the President on March 18, 2019, available at
https://www.whitehouse.gov/presidential-actions/sequestration-order-fiscal-year-2020/. For additional background on
the FY2020 mandatory sequester, see CRS In Focus IF11332, FY2020 Mandatory Sequester Reduces Medicare $15.3
Billion, Other Mandatory Spending $5.39 Billion .
25 OMB, OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2021 , February 10, 2020, at
https://www.whitehouse.gov/wp-content/uploads/2020/02/JC-sequestration_report_FY21_2-10-20.pdf.
26 For details, see DOL, ET A, Unemployment Insurance Program Letter (UIPL) No. 18-19, September 16, 2019, at
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5955.
27 T he FY2021 Sequestration Order was issued by the President on February 10, 2020, available at
https://www.whitehouse.gov/briefings-statements/sequestration-order-fiscal-year-2021/.
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Unemployment Insurance During a Government
Shutdown
The lapse in federal appropriations that occurred from December 22, 2018, until January 25,
2019, caused a partial government shutdown. As a result, during this lapse in appropriations,
agencies without funding furloughed federal employees, and many federal employees were
“excepted” from furlough worked without pay.28
Furloughed federal employees may be eligible for UCFE benefits.29 States are required to operate
the UCFE program under the same terms and conditions that apply to regular state UC.30
Therefore, UCFE eligibility is determined under the laws of the state in which an individual’s
official duty station in federal civilian service is located. Federal employees who are in furlough
status because of a government shutdown are general y treated by state law as laid off with an
expectation of recal . Depending on state laws and regulations, the state may have an option to
not require federal employees to search for work given an expected recal .31
However, according to guidance from DOL, excepted federal employees who are performing
services (but working without pay) would general y be ineligible for UCFE benefits based on
states’ definitions of “unemployment.”32
Private-sector workers who are furloughed or laid off due to the partial government shutdown
because they were employed by government contractors or other businesses may be eligible for
regular UC benefits. UC eligibility for these workers would be based on the requirements set out
under the state laws in the state where they had worked.
Reflecting this climate, there has been congressional interest in assisting furloughed and excepted
federal employees through the UI system. For example, as described below in the section on
“Unemployment Compensation for Excepted Federal Employees During a Government
Shutdown,” there are proposals to provide new authority to pay UCFE benefits to excepted
federal employees who work without pay.
The most recent lapse in federal appropriations began December 22, 2018, and ended on January
25, 2019, with the enactment of H.J.Res. 28.33 Because retroactive pay for furloughed and
28 See OMB guidance on the recent lapse in appropriations, available at https://www.whitehouse.gov/omb/information-
for-agencies/agency-contingency-plans/. Also see the Office of Personnel Management guidance on “ Pay and Benefits
for Employees Affected by the Lapse in Appropriations” (CPM 2019 -06), January 27, 2019, available at
https://www.chcoc.gov/content/pay-and-benefits-employees-affected-lapse-appropriations-1.
29 Unemployment Compensation for Federal Employees (UCFE) is authorized under 5 U.S.C. §§8501-8508. For a
short discussion of this issue, see CRS Insight IN11169, Availability of Unem ploym ent Benefits for Affected Federal
Em ployees During a Governm ent Shutdown.
30 See 5 U.S.C. §8502(b).
31 See OPM, “ Unemployment Insurance Questions and Answers for Federal Workers,” December 2018, available at
https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/unemployment -compensation-for-federal-
employees-fact -sheet -december-2018.pdf.
32 See DOL, ET A, UIPL 31-13, “ Impacts of the Federal Government Shutdown and Unemployment Compensation for
Federal Employees and State Administrative Funding for State UI Programs,” Section A(3) of the Attachment
(“Questions and Answers: Unemployment Insurance and the Federal Government Shutdown ”), October 11, 2013,
available at https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7589; and also DOL, ET A, “ E-Blast to State
Unemployment Insurance Agencies,” January 16, 2019, available at https://oui.doleta.gov/unemploy/2019_shutdown/
docs/E-Blast_to_State_Unemployment_Insurance_Agencies_v3.pdf .
33 H.J.Res. 28 (enacted January 25, 2019) is a continuing resolution (CR) that provided continuing FY2019
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excepted federal employees was authorized under S. 24, the Government Employee Fair
Treatment Act of 2019 (enacted January 16, 2019), UCFE payments made to federal employee
claimants during this lapse in appropriations may be deemed an overpayment, subject to state UC
laws regarding overpayment recovery. According to the Office of Personnel Management’s
guidance on this issue,34
The state UI agency will determine whether or not an overpayment exists and, generaly,
the recovery of the UCFE overpayment is a matter for state action under its law; however,
some state UI laws require the employer to recover such overpayment by collecting the
overpayment amount from the employee. The Federal and state agencies will need to
coordinate to determine the required action in accordance with the individual state UI law.
Federal agencies are encouraged to develop lists or spreadsheets that can be provided to
the state(s) containing the employees’ names, social security numbers, and the amounts
and periods of time covered by the retroactive payment.
State UC Loans and Solvency Concerns
If a recession is deep enough and if SUTA revenue is inadequate for long periods of time, 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.35 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.36
As of June 9, 2020, four jurisdictions have outstanding federal loans from the federal accounts
within the UTF: California ($899 mil ion); New York ($1.6 bil ion); Texas ($72.6 mil ion); and
the U.S. Virgin Islands ($59.1 mil ion).37 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.38
appropriations to several federal agencies through February 15, 2019.
34 OPM, “Pay and Benefits for Employees Affected by the Lapse in Appropriations” (CPM 2019 -06), January 27,
2019, available at https://www.chcoc.gov/content/pay-and-benefits-employees-affected-lapse-appropriations-1.
35 Federal UC law does not restrict the states from using loan resources outside of the UT F. Depending o n 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).
36 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.
37 U.S. Department of the T reasury, Bureau of Public Debt, Title XII Advance Activities Schedule, June 9, 2020, at
http://www.treasurydirect.gov/govt/reports/tfmp/tfmp_advactivitiessched.htm.
38 T he average high-cost multiple (AHCM) is the ratio of actual state Unemployment Trust Fund account balances
(divided by covered wages in that year) to the average of the 3 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 3 high est 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, Division of Fiscal and Actuarial Services, State
Unem ploym ent Insurance Trust Fund Solvency Report 2020, February 2020, at https://oui.doleta.gov/unemploy/docs/
trustFundSolvReport2020.pdf.
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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.39 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. Section 30206 of P.L. 115-123 codified the authority for DOL to administer a
RESEA program.40 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 to
participating UI beneficiaries.
On April 4, 2019, DOL published a proposed methodology to al ocate base RESEA funds and
outcome payments. DOL requested state and public comments on this proposal by May 6, 2019.41
On August 8, 2019, DOL published a notice that summarizes and responds to the public
comments as wel as sets out the RESEA al ocation formula that wil be effective beginning in
FY2021.42
President’s Budget Proposal for FY2021
The President’s budget for FY2021 proposes changes to several aspects of the UI system.43 It
would create a new required standard for state account balances within the UTF and a new benefit
entitlement for paid parental leave financed through state unemployment taxes. The President’s
FY2021 budget also proposes a set of additional integrity measures, including the required use of
certain databases to confirm UC eligibility and requiring Social Security Disability Insurance
(SSDI) benefits offset UI benefits.
39 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 DOL, ET A, Unemployment Insurance Program Letter, UIPL 3-17, December 8, 2016, p.
2, available at https://wdr.doleta.gov/directives/attach/UIPL/UIPL_03-17.pdf.
40 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 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).
41 DOL, 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, accessible at https://www.govinfo.gov/content/pkg/FR-2019-04-04/pdf/2019-
06558.pdf.
42 DOL, 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, accessible at https://www.govinfo.gov/content/pkg/FR-2019-08-08/pdf/2019-16988.pdf.
43 T he President’s detailed budget proposal for UC in FY2021 is accessible at https://www.dol.gov/general/budget. T he
President’s budgets for FY2019 and FY2020 included substantively similar UC proposals and are accessible at
https://www.dol.gov/general/budget/index-2019 and https://www.dol.gov/general/budget/index-2020.
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New Minimum Account Balance for State UTF Accounts
The President’s budget proposal for FY2021 would require states to maintain a minimum level of
solvency in their UTF account balances to be at least half (0.5) of the state’s AHCM. (Under
current law, states have incentives to maintain an AHCM of at least 1.0 but are not required to do
so.) The proposal would alter the rules for calculating the net FUTA rate, requiring a higher net
FUTA rate on a state’s employers if that state maintained an AHCM of less than 0.5 on January 1
of two or more consecutive years. The additional FUTA revenue would be deposited into the state
UTF account and would be terminated once the state met the 0.5 AHCM criteria.44
Paid Family Leave Benefit
The President’s budget proposal for FY2021 would require states to establish a paid parental
leave benefit, using the UC program as its base for an administrative framework.45 States would
be required to provide six weeks of benefits to a worker on leave or otherwise absent from work
for the birth or adoption of the worker’s child.46 States would have discretion to determine the
parameters of eligibility and financing for this new paid parental leave benefit.
UI Program Integrity
Requirements to Use Particular Data Sources for Program Integrity
The President’s 2021 budget would require states to use three specific data sources to confirm an
individual’s eligibility for UC benefits: the State Information Data 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 and Human
Services); and the Prisoner Update Processing System (PUPS, administered by the Social
Security Administration).47
Additional Integrity Proposals
The proposal would create several additional integrity measures, including
giving the Secretary of Labor the authority to implement new corrective action
measures in response to poor state administrative performance within the
program;
44 Seven states did not meet this solvency measure at the end of 2019: California, New York, T exas, Illino is,
Massachusetts, Ohio, and the U.S. Virgin Islands. A total of 22 states did not qualify for interest -free short-term loans
for FY2020. See DOL, Office of Unemployment Insurance, Division of Fiscal and Actuarial Services, State
Unem ploym ent Insurance Trust Fund Solvency Report 2020, Chart 1 and T able 1, pp. 59-60, February 2020, at
https://oui.doleta.gov/unemploy/docs/trustFundSolvReport2020.pdf.
45 For information on a previous attempt to create a paid benefit for the birth or adoption of a child through the UC
program, see CRS In Focus IF10643, Unem ployment Com pensation (UC) and Fam ily Leave.
46 It is not clear if this proposal creates any new entitlement to job-protected leave itself; rather, it appears to create a
new entitlement to income replacement while an individual is taking parent al leave. For information on states that
currently operate state paid family leave insurance programs, including California, Rhode Island, New Jersey, and New
York as well as states that have enacted paid family leave insurance programs, but which are not yet fully implemented
and not paying benefits (e.g., the District of Columbia, Massachusetts, and Washington State), see CRS Report
R44835, Paid Fam ily and Medical Leave in the United States.
47 States currently have the federal authority to use these data sources, but their use is not mandatory.
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al owing states to retain a percentage of UC overpayments for program integrity
use;
requiring states to deposit al UC penalty and interest payments into a special
state fund, with these funds required to be used for improving state UI
administration as wel as providing reemployment services for UI claimants;48
and
offsetting SSDI benefits to account for concurrent receipt of UI benefits.49
New Final Rule on UC Drug Testing
Section 2105 of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96; February
22, 2012) amended federal law to al ow states to conduct two types of drug testing. First, it
expanded the long-standing state option to disqualify UC applicants who were discharged from
employment with their most recent employer (as defined under state law) for unlawful drug use
by al owing states to drug test these applicants to determine UC benefit eligibility or
disqualification. Second, it al owed states to drug test UC applicants for whom suitable work (as
defined under state law) is available only in an occupation that regularly conducts drug testing, to
be determined under new regulations issued by the Secretary of Labor.
As required by P.L. 112-96, on August 1, 2016, DOL promulgated 20 C.F.R. Part 620,50 a new
rule to implement the law’s provisions relating to the drug testing of UC applicants for whom
suitable work (as defined under state law) is available only in an occupation that regularly
conducts drug testing.
Amid stakeholders’ concerns about the 2016 DOL rule, Congress repealed this UC drug testing
rule using the Congressional Review Act (CRA) via H.J.Res. 42/P.L. 115-17.51 On November 5,
2018, DOL published a Notice of Proposed Rulemaking (NPRM) to reissue the rule identifying
occupations that regularly conduct drug testing for purposes of Section 2105 of P.L. 112-96.52 The
CRA prohibits an agency from reissuing the rule in “substantial y the same form” or issuing a
“new rule that is substantial y the same” as the disapproved rule, “unless the reissued or new rule
is specifical y authorized by a law enacted after the date of the joint resolution disapproving the
48 In addition, under this proposal, states with high improper payment rates would be required to spend a portion of the
UC penalty and interest payments funds on program integrity activities.
49 For general background on the issue of concurrent receipt of SSDI and UI, see CRS Report R43471, Concurrent
Receipt of Social Security Disability Insurance (SSDI) and Unem ployment Insurance (UI): Background and Legislative
Proposals.
50 See “Federal-State Unemployment Compensation Program; Middle Class T ax Relief and Job Creation Act of 2012
Provision on Establishing Appropriate Occupations for Drug T esting of Unemployment Compensation Applicants,” 81
Federal Register 50298-50302, August 1, 2016, at https://www.govinfo.gov/content/pkg/FR-2016-08-01/pdf/2016-
17738.pdf.
51 For examples of these stakeholder concerns, see CRS Report R45889, Unemployment Compensation (UC): Issues
Related to Drug Testing. For information on the Congressional Review Act, see CRS Report R43992, The
Congressional Review Act (CRA): Frequently Asked Questions.
52 DOL, ET A, “Federal-State Unemployment Compensation Program; Establishing Appropriate Occupations for Drug
T esting of Unemployment Compensation Applicants Under the Middle Class T ax Relief and Job Creation Act of
2012,” 83 Federal Register 55311-55318, November 5, 2018, at https://www.federalregister.gov/documents/2018/11/
05/2018-23952/federal-state-unemployment-compensation-program-establishing-appropriate-occupations-for-drug.
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original rule.” Notably, this is the first time an agency has proposed to reissue a rule after the
original version was disapproved under the CRA.53
According to the 2018 NPRM, DOL has addressed the reissue requirements of the CRA by
proposing a substantial y different and more flexible approach to the statutory requirements than
the 2016 Rule, enabling states to enact legislation to require drug testing for a far larger group of
UC applicants than the previous rule permitted. This flexibility is intended to respect the diversity
of states’ economies and the different roles played by employment drug testing in those
economies.54
Comments on the proposed 2018 rule were required to be submitted by January 4, 2019.55 As of
September 25, 2019, the Office of Management and Budget’s Office of Information and
Regulatory Affairs completed its final review of this rule.56 The final rule was issued on October
4, 2019.57
For an analysis of selected policy considerations relevant to UC drug testing, including arguments
for and against expanded drug testing, potential legal concerns, and administrative considerations,
see CRS Report R45889, Unemployment Compensation (UC): Issues Related to Drug Testing.
Enacted Laws in the 116th Congress
P.L. 116-127, the Families First Coronavirus Response Act (FFCRA)
On March 18, 2020, President Trump signed P.L. 116-127 (H.R. 6201), the Families First
Coronavirus Response Act (FFCRA). The UI provisions are found in Division D of P.L. 116-127.
Division D general y gives states more flexibility to address COVID-19 through expanded benefit
eligibility as wel as additional administrative funding. DOL has published guidance for states on
how to implement the Families First Coronavirus Response act in its Unemployment Insurance
Program Letter No. 13-20, March 22, 2020, available at https://wdr.doleta.gov/directives/
corr_doc.cfm?DOCN=8634.
Administrative Grants to States
Section 4102(a) of FFCRA provides up to a total of $1 bil ion in “emergency administrative
grants” to states in calendar year 2020.58 Half of each state’s share is available if the state meets
53 For more information on potential implications for this reissued rule stemming from the disapproval of the 2016 rul e
under the CRA, see CRS Insight IN10996, Reissued Labor Departm ent Rule Tests Congressional Review Act Ban on
Promulgating “Substantially the Same” Rules.
54 See DOL, “Federal-State Unemployment Compensation Program,” pp. 55312-55313.
55 T he 211 comments received on this rule are available at https://www.regulations.gov/docket?D=ET A-2018-0004.
56 OMB, Office of Information and Regulatory Affairs, Reginfo.gov, “ OIRA Conclusion of EO 12866 Regulatory
Review,” at https://www.reginfo.gov/public/do/eoDetails?rrid=129401.
57 Employment and T raining Administration, Depart ment of Labor, “Federal-State Unemployment Compensation
Program; Establishing Appropriate Occupations for Drug T esting of Unemployment Compensation Applicants Under
the Middle Class T ax Relief and Job Creation Act of 2012 ,” 84 Federal Register 53037-52, October 4,
2019, https://www.govinfo.gov/content/pkg/FR-2019-10-04/pdf/2019-21227.pdf.
58 DOL has published the state shares of these emergency administrative grants in 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.The maximum payment allowable for a
state is calculated using the methods also used in Reed Act distributions. T hat is, funds would be distributed to the state
Unemployment T rust Fund (UT F) accounts based on the state’s share of estimated federal unemployment taxes
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certain requirements related to UC eligibility notifications and claims access. The second half of
each state’s share is available if it qualified for the first half and if the state experiences at least a
10% increase in UC claims over the previous calendar year and meets certain other requirements
related to easing UC eligibility requirements for individuals affected by COVID-19. Additional y,
there are reporting requirements to DOL and committees of jurisdiction within one year for states
that receive these grants.59
Waives Certain UI Requirements for Benefits
Section 4102(b) of FFCRA waives any federal UI requirements (i.e., under Section 303 of the
Social Security Act and Federal Unemployment Tax Act [FUTA] Section 3304) related to work
search, one-week waiting periods,60 quits for good cause,61 and employer tax assessments for state
programs if a state modifies its UC laws “on an emergency temporary basis as needed to respond
to the spread of COVID-19.62”
Waives Interest Payments Due and Accrual of Interest on UTF Loans
Section 4103 of FFCRA temporarily waives interest payments and the accrual of interest on
federal advances (loans) to states to pay UC benefits through December 2020.63 But it would not
reduce any underlying loan principal.64
Short-Time Compensation Assistance
Section 4104 of FFCRA requires DOL to provide assistance to states in establishing,
implementing, and improving Short-Time Compensation (work sharing) programs.65
(excluding reduced credit payments) made by the state’s employers. For background on Reed Act distributions, see
CRS Report RS22006, The Unem ploym ent Trust Fund and Reed Act Distributions.
59 As of June 11, 2020, according to DOL, all states have met the criteria for receiving these FFCRA grants (see
https://oui.doleta.gov/unemploy/pdf/IC3MOmarch.pdf). All states have requested their full allotment with the
exception of Puerto Rico, which had not requested the second allotment. Email from Employment and T raining
Administration analyst, June 11, 2020.
60 Many states require that an individual, who is otherwise eligible for UI benefits, serve a waiting period (one week)
before benefits are payable. Some states currently also waive this waiting week requirement under certain situations,
such as a disaster or emergency declaration. For additional details, see T able 3 -7 (“ State Initial Waiting Periods”) in
“Chapter 3: Monetary Eligibility,” of DOL’s 2019 Comparison of State Unemployment Insurance Laws, available at
https://workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2019/monetary.pdf.
61 Individuals generally are required to have lost a job through no fault of their own in order to be eligible for UC
benefits, but states also define “good cause” voluntary quits that do not make UC claimants ineligible for benefits. For
additional details, see beginning on p. 2 of “ Chapter 5: Nonmonetary Eligibility,” of DOL’s 2019 Com parison of State
Unem ploym ent Insurance Laws, available at https://workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2019/
nonmonetary.pdf.
62 One of the more restrictive federal UI requirements in the context of this COVID-19 outbreak is the requirement
under Section 303(a) of the Social Security Act that the unemployed must be “ able to work, available to work, and
actively seeking work” in order to be eligible for regular UC benefits (see 42 U.S.C. Section 503(a)(12)). While
Division D waives the work search aspect of this requirement, it does not waive the “ able and available” aspect of this
requirement.
63 For background on these federal loans to states, see CRS Report RS22954, The Unemployment Trust Fund (UTF):
State Insolvency and Federal Loans to States.
64 T his provision is similar to what was enacted for 2009 and 2010 under Section 2004 of the American Recovery and
Reinvestment Act (ARRA; P.L. 111-5). See CRS Report R40368, Unem ployment Insurance Provisions in
the Am erican Recovery and Reinvestm ent Act of 2009 .
65 For background on ST C programs, see CRS Report R40689, Compensated Work Sharing Arrangements (Short-Time
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Temporary 100% Federal Financing of EB for States Qualify for Full Division
D Administrative Grants
Final y, Section 4105 of FFCRA temporarily makes Extended Benefits (EB) 100% federal y
financed (with the exception of “non-sharable” compensation—e.g., state and local workers) from
enactment until the end of December 2020, but only for states that receive both halves of the
emergency administrative grants.66 Because P.L. 116-127 also temporarily removes the current
incentive in EB law for states to have a one-week waiting period, or “waiting week,” for their
regular UC programs through December 2020, the first week of EB is “sharable” (50%
federal/50% state under permanent law; or 100% under the conditions of this provision).
P.L. 116-136, the CARES Act
On March 27, 2020, President Trump signed P.L. 116-136, the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. Title II, Subtitle A of the CARES Act provides several
temporary UI measures to address recent increases in unemployment including augmented benefit
amounts, expanded benefit eligibility, additional weeks of benefits, and several other UI
provisions.
As of this report date, DOL has released nearly a dozen Unemployment Insurance Program
Letters (UIPLs) that provide guidance to states regarding the administration of the UI provisions
in the CARES Act. These DOL UIPLs are available, along with additional COVID-19-related
information, at https://oui.doleta.gov/unemploy/coronavirus/.
Below are summary details of Sections 2102 through 2115 of the CARES Act (i.e., the UI
provisions).
Temporary, Additional $600 Weekly Federal Compensation (FPUC)67
Section 2104 of the CARES Act creates a temporary, additional, federal y financed $600 benefit
that augments weekly UI benefits, including UC, Pandemic Unemployment Assistance (PUA, see
description below), Pandemic Emergency Unemployment Compensation (PEUC, see description
below), EB, DUA, STC, Trade Readjustment Al owance (TRA), and Self Employment Assistance
(SEA).68 This FPUC is payable for weeks of unemployment beginning after a state signs an
agreement through weeks ending on or before July 31, 2020.69
Com pensation) as an Alternative to Layoffs.
66 As of June 11, 2020, according to DOLET A all states have met the criteria (see https://oui.doleta.gov/unemploy/pdf/
IC3MOmarch.pdf. All states have requested their full allotment with the exception of Puerto Rico , which had met the
criteria but had not requested the second allotment. Email from Employment and T raining Administration analyst, June
11, 2020.
67 For relevant DOL guidance, see DOL, ET A, UIPL No. 15-20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 - Federal Pandemic Unemployment Compensation (FPUC) Program Operating, Financial, and
Reporting Instructions,” April 5, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9297.
68 For information on T RA, see CRS Report R44153, Trade Adjustment Assistance for Workers and the TAA
Reauthorization Act of 2015. For information on SEA, see CRS Report R41253, The Self-Em ploym ent Assistance
(SEA) Program .
69 A number of state laws have provisions for extending the potential duration of benefits during periods of high
unemployment for individuals in approved training who exhaust benefits, or for a variety of other reasons. Although
some state laws call these programs “extended benefits,” DOL uses the term “additional benefits” (AB) to avoid
confusion with the federal-state EB program. DOL has stated that FPUC is not payable to individuals receiving AB
payments. T he order of payment for AB within the context of the multiple programs described above is dependent on
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FPUC income is disregarded for the purposes of Medicaid and the Children’s Health Insurance
Program (CHIP). (During the period that this payment is authorized, states would be prohibited
from reducing UC benefit amount or duration.)
Temporary, Pandemic Unemployment Assistance (PUA) for Unemployed
Persons Not Covered by Regular UC Program70
Section 2102 of the CARES Act creates a temporary, federal UI program for individuals not
otherwise eligible for UI benefits (e.g., self-employed, independent contractors, gig economy
workers, and other workers not covered under state UC programs): Pandemic Unemployment
Assistance (PUA). PUA benefits are to be administered by states, like al other UI benefits.
PUA provides up to 39 weeks of federal y financed UI benefits to unemployed workers who (1)
are ineligible for any other state or federal UI benefit; (2) meet conditions related to being
unemployed, partial y unemployed, or unable to work due to COVID-19; and (3) are not able to
telework and are not receiving any paid leave. According to the DOL 2020 Summary CARES Act
UIPL, the total weekly entitlement PUA is general y limited to 39 weeks, offset by any weeks that
the individual received benefits from regular UC and EB. Under this guidance, the weeks for
which an individual collected PEUC would not be deducted from the individual’s PUA
entitlement.71
PUA is available in al states and U.S. territories, subject to agreements with DOL. PUA pays
benefits, including retroactively, for weeks of unemployment, partial unemployment, or inability
to work beginning on or after January 27, 2020, and ending on or before December 31, 2020
(hereinafter, through December 2020).
The PUA benefit amount is identical to the weekly benefit amount (WBA) as calculated under
state law based on recent earnings (subject to the minimum benefit under DUA, which is half of
the state’s average weekly UC benefit amount).72 In territories without UC programs, the PUA
benefit would be determined by DUA regulations.73
Al PUA benefits, like other UI benefits, are temporarily augmented by an additional, federal
payment of $600 beginning after the date on which the state enters into an agreement with DOL
to pay FPUC through July 2020.
state law.
70 For relevant DOL guidance, see DOL, ET A, UIPL No. 16 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 - Pandemic Unemployment Assistance (PUA) Program Operating, Financial, and Reporting
Instructions,” April 6, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4628; and UIPL No. 16-20,
Change 1, “Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 – Pandemic Unemployment
Assistance (PUA) Program Reporting Instructions and Questions and Answers,” April 27, 2020, https://wdr.doleta.gov/
directives/corr_doc.cfm?DOCN=5899.
71 See Section 4(b)(i)(d) of DOL, ET A UIPL No. 14-20, “Coronavirus Aid, Relief, and Economic Security (CARES)
Act of 2020 – Summary of Key Unemployment Insurance (UI) P rovisions and Guidance Regarding T emporary
Emergency State Staffing Flexibility,” April 2, 2020, p. 7, https://wdr.doleta.gov/directives/attach/UIPL/UIPL_14-
20.pdf.
72 For minimum DUA benefits, see DOL, ET A, UIPL, No. 11-20, “Minimum Disaster Unemployment Assistance
(DUA) Weekly Benefit Amount: April 1 - June 30, 2020,” March 19, 2020, https://wdr.doleta.gov/directives/
corr_doc.cfm?DOCN=8052.
73 For background on DUA, see CRS Report RS22022, Disaster Unemployment Assistance (DUA).
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Temporary, 13-Week Extended Pandemic Emergency Unemployment
Compensation (PEUC)74
Section 2107 of the law creates PEUC, which authorizes up to 13 additional weeks of federal y
financed UI benefits for individuals who exhaust state and federal UI benefits and are able,
available, and actively seeking work, subject to COVID-19-related flexibilities.
PEUC is authorized through the end of December 2020. The PEUC benefit amount is required to
be the WBA as calculated under state law. Al PEUC benefits are temporarily increased by $600 a
week by FPUC through July 31, 2020. (During the period that PEUC is authorized, states would
be prohibited from reducing UC benefit amount or duration.)
Coordination of UI Benefits
Individuals may be eligible for benefits under multiple UI programs, including programs
authorized in the CARES Act. Below, Figure 1 provides the statutory order of the flow of UI
benefits. This flow is contingent on the individual meeting al eligibility criteria for the respective
programs. It is also contingent on the state having an agreement with DOL to administer the
programs authorized under the CARES Act.
74 For relevant DOL guidance, see DOL, ET A, UIPL No. 17 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020-Pandemic Emergency Unemployment Compensation (PEUC) Program Operating, Financial,
and Reporting Instructions,” April 10, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8452; and UIPL
No. 17-20, Change 1, “ Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 -Pandemic Emergency
Unemployment Compensation (PEUC) Program: Questions and Answers, and Revised Re porting Instructions for the
PEUC ET A 227,” May 13, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8689.
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Unemployment Insurance: Legislative Issues in the 116th Congress
Figure 1. Coordination of the Flow of UI Benefits Under the CARES Act
Source: CRS analysis based on P.L. 116-136, the CARES Act and DOL guidance.
Notes: This flow is contingent on the individual meeting al eligibility criteria for the respective programs. It is
also contingent on the state having an agreement with DOL to administer the programs authorized under the
CARES Act.
Other UI Provisions
Section 2103 provides, through December 2020, 50% federal funding of regular
UC benefits based on service with reimbursing employers, which are state and
local governments, federal y recognized Indian tribes, and nonprofit
organizations that have opted not to pay UI taxes, but instead reimburse states for
UC benefits paid to their former employees. This provision provides financial
relief to these reimbursing employers. It also al ows for state flexibility in the
timing of required reimbursement payments for these employers.75
75 For relevant DOL guidance, see DOL, ET A, UIPL No. 18 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 – Emergency Unemployment Relief for State and Local Governmental Entities, Certain
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Section 2105 provides 100% federal financing through the end of December
2020 for UC benefits provided during the first week of unemployment in state
UC programs with no one-week waiting period (thus, incentivizing states that
require one-week waiting periods before receiving UC under state law to remove
them).76
Section 2106 temporarily waives federal requirements regarding merit staffing
for state UC programs on an emergency basis in response to COVID-19 until
December 31, 2020. This waiver is limited to certain temporary actions taken by
states to quickly process UI claims, including rehiring former employees and
temporary hiring.77
Sections 2108-2111 authorizes 100% federal financing of Short-Time
Compensation (STC; work sharing) in states with existing programs and 50%
federal financing for states that set up STC. It also authorizes $100 mil ion in
federal grants to support STC. DOL would be required to provide STC technical
assistance.78
Sections 2112-2114 provide $50 mil ion to waive the seven-day waiting period
for Railroad Unemployment Insurance (RRUI) benefits. They also authorize a
comparable FPUC ($1,200 for RRUI biweekly benefits; so $600 per week) for
RRUI through July 2020. Final y, they provide an additional 13 weeks of
federal y financed RRUI benefits through the end of December 2020, comparable
to PEUC.79
Section 2115 provides $25 mil ion in funding for the DOL Office of Inspector
General for audits, investigations, and oversight related to the UI provisions in
the CARES Act.
Section 2116 authorizes DOL to issue operating instructions and other guidance
needed to implement the UI provisions in the CARES Act.
Table 1 provides a summary of the Sections 2102 through 2111 of the CARES Act.
Nonprofit Organizations, and Federally-Recognized Indian T ribes,” April 27, 2020, https://wdr.doleta.gov/directives/
corr_doc.cfm?DOCN=5893.
76 For relevant DOL guidance, see DOL, ET A, UIPL No. 20 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 - Operating, Financial, and Reporting Instructions for Section 2105: T emporary Full Federal
Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week,” April 30, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?docn=6324.
77 For relevant DOL guidance, see DOL, ET A, UIPL No. 14 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 – Summary of Key Unemployment Insurance (UI) Provisions and Guidance Regarding
T emporary Emergency State Staffing Flexibility,” April 2, 2020, https://wdr.doleta.gov/directives/attach/UIPL/
UIPL_14-20.pdf.
78 For relevant DOL guidance, see DOL, ET A, UIPL No. 21 -20, “Coronavirus Aid, Relief, and Economic Security
(CARES) Act of 2020 - Short -T ime Compensation (ST C) Program Provisions and Guidance Regarding 100 Percent
Federal Reimbursement of Certain State ST C Payments,” May 3, 2020, https://wdr.doleta.gov/directives/attach/UIPL/
UIPL_21-20.pdf; and UIPL No. 22-20, “ Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
Short -T ime Compensation (ST C) Program Grants,” May 10, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?
DOCN=6220.
79 For background on RRUI, see CRS Report RS22350, Railroad Retirement Board: Retirement, Survivor, Disability,
Unem ploym ent, and Sickness Benefits. For additional information on RRUI and the CARES Act, see U.S. Railroad
Retirement Board, “RRB Begins Paying CARES Act Recovery Payments for Unemployed Rail Workers,” May 2020,
https://rrb.gov/Newsroom/NewsReleases/RecoveryPayments.
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Table 1. DOL-Related Summary Information on Unemployment Insurance
Provisions in the CARES Act
(P.L. 116-136, Sections 2102-2111)
Benefit/Program
Availability
Description
Section 2102
Provides up to 39 weeks of
Applies to individuals who are self-employed, those who
unemployment.
would not qualify for regular Unemployment
Pandemic
Covers weeks of
Compensation (UC) or Extended Benefits (EB) under
Unemployment
unemployment beginning on
state or federal law or Pandemic Unemployment
Assistance (PUA)
or after January 27, 2020
Compensation (PEUC) under Section 2107. Includes
through the week ending on
individuals who have exhausted al rights to UC, PEUC,
or before December 31,
and EB.
2020 (payable on a
Operational y, this program wil be administered by the
retroactive basis).
states similarly to the Disaster Unemployment
Assistance (DUA) program.
Includes eligible, unemployed workers in the states,
American Samoa, Commonwealth of the Northern
Mariana Islands, the District of Columbia, Federated
States of Micronesia, Guam, Marshal Islands, Puerto
Rico, the Republic of Palau, and the U.S. Virgin Islands,
provided the state/territory signs an agreement with U.S.
Department of Labor (DOL).
Section 2103
Covers weeks of
Authorizes DOL to issue guidance to al ow states to
unemployment beginning on
interpret their state UC laws to provide maximum
Emergency
or after March 13, 2020
flexibility to reimbursing employers (which are state and
Unemployment Relief
through December 31,
local governments, federal y recognized Indian tribes, and
of Governmental
2020.
nonprofit organizations that have opted not to pay UI
Entities and Non-
taxes, but instead reimburse states for UC benefits paid
Profit Organizations
to their former employees) as it relates to timely
payment and assessment of penalties and interest.
Provides for transfers to a state’s account in the
Unemployment Trust Fund (UTF) from the Federal
Unemployment Account (FUA) to al ow partial
reimbursements (general y 50 percent of the amount of
payments in lieu of contributions) to reimbursing
employers.
Section 2104
Covers weeks of
Provides individuals who are col ecting regular UC,
unemployment beginning
PEUC, PUA, EB, Short-Time Compensation (STC),
Federal Pandemic
after the date of signed
Trade Reemployment Al owances (TRA), Disaster
Unemployment
agreement (between state
Unemployment Assistance (DUA), or Self-Employment
Compensation
and DOL) through July 31,
Assistance (SEA) with an additional, federal y-financed
(FPUC)
2020.
$600 per week.
Among the requirements of this program is a non-
reduction rule, which prohibits states from changing the
computation method governing regular UC law in a way
that results in the reduction of average weekly benefit
amounts or the number of weeks of benefits payable
(i.e., maximum benefit entitlement).
Section 2105
Covers weeks of
For states that provide compensation to individuals for
unemployment beginning
their first week of unemployment (i.e., states which do
Temporary Ful
after the date of signed
not require a waiting week), this Section provides 100%
Federal Funding of the
agreement, through
federal funding for the total amount of UC paid to
First Week of
December 31, 2020.
individuals for their first week of regular UC.
Compensable Regular
Compensation
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Benefit/Program
Availability
Description
Section 2106
March 27, 2020 through
Provides state agencies with emergency flexibility for
December 31, 2020.
personnel standards on a merit basis limited to engaging
Emergency State
of temporary staff, rehiring of retirees or former
Staffing Flexibility
employees on a non-competitive basis, and other
temporary actions to quickly process applications and
claims.
Section 2107
Covers weeks of
Provides for up to 13 weeks of benefits to individuals
unemployment beginning
who have exhausted regular UC under state or federal
Pandemic Emergency
after state signs agreement
law, have no rights to regular UC under any other state
Unemployment
through December 31,
or federal law, are not receiving compensation under the
Compensation
2020.
UC laws of Canada, and are able to work, available for
(PEUC)
work, and actively seeking work.
States must offer flexibility in meeting the “actively
seeking work” requirement if individuals are unable to
search for work because of COVID-19, including
because of il ness, quarantine, or movement restriction.
Among the requirements of this program is a non-
reduction rule, which prohibits states from changing the
computation method governing regular UC law in a way
that results in the reduction of average weekly benefit
amounts or the number of weeks of benefits payable
(i.e., maximum benefit entitlement).
Section 2108
Covers weeks of
Provides that states with an existing STC program may
unemployment beginning on
be reimbursed with federal funds for 100% of STC
Temporary Financing
or after March 27, 2020
benefit costs, up to a maximum of 26 weeks of STC per
for Existing Short-
through weeks of
individual.
Time Compensation
unemployment ending on or
(STC) Programs
before December 31, 2020.
(If a state enacts a new STC
law, reimbursements are
available starting with the
effective date of the state
law.)
Section 2109
Covers weeks of
Provides that states without an existing STC program
unemployment beginning
may provide STC benefits under an agreement with the
Temporary Financing
after the date of signed
Secretary of Labor and be reimbursed with federal funds
of STC Agreements
agreement ending on or
for 50% of STC benefit costs, up to a maximum of 26
before December 31, 2020.
weeks of STC per individual.
Section 2110
Grant applications must be
Provides for a $100 mil ion grant to be shared across
submitted by December 31,
states for implementation or improved administration,
Grants for STC
2023.
and promotion and enrol ment of the state’s STC
Programs
program.
Section 2111
Effective March 27, 2020.
Provides that DOL shal develop model legislative
language, or disseminate existing model language, which
may be used by states in developing and enacting STC
Assistance and
programs.
Guidance in
Implementing
The Department wil also develop reporting
Programs
requirements for states and provide technical assistance.
Source: CRS analysis based on P.L. 116-136, the CARES Act, and Attachment 1 in DOL 2020 Summary CARES
Act UIPL, https://wdr.doleta.gov/directives/corr_doc.cfm? DOCN=3390.
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Unemployment Insurance: Legislative Issues in the 116th Congress
Legislative Proposals in the 116th Congress
Unemployment Compensation for Excepted Federal Employees
During a Government Shutdown
On January 16, 2019, Senator Richard Blumenthal introduced S. 165, the Federal Unemployment
Compensation Equity Act of 2019. This proposal would amend UCFE law and create a new
permanent UCFE eligibility category for excepted federal employees who are unpaid but required
to work during a government shutdown due to a lapse in appropriations. During any shutdown
beginning on or after December 22, 2018, al excepted federal workers would be deemed eligible
for UCFE benefits. In addition, these employees would not be subject to a one-week waiting
period (otherwise often required under state laws) before UCFE benefits were to be paid.
On January 23, 2019, Representative Debbie Dingel introduced H.R. 725, the Pay Federal
Workers Act. This proposal would also provide UCFE benefits in a similar manner to S. 165,
including permanently amending 5 U.S.C. Chapter 85 to provide federal authority for these
benefits.
On January 23, 2019, Representative Anthony Brown introduced H.R. 720. This proposal would
deem excepted federal employees during a government shutdown to be eligible for UCFE during
FY2019. The authority to provide UCFE to these excepted workers would expire at the end of
FY2019.
On February 8, 2019, Representative Katie Hil introduced H.R. 1117, the Shutdown Fairness Act
of 2019. This proposal would deem excepted federal employees and unpaid military
servicemembers during a government shutdown to be eligible for UCFE or UCX during FY2019.
The authority to provide UCFE to these excepted workers would expire at the end of FY2019.
On July 25, 2019, Representative Lori Trahan introduced H.R. 4072. This proposal would deem
excepted federal employees and unpaid military servicemembers during a government shutdown
to be eligible for UCFE or UCX during FY2020. The authority to provide UCFE to these
excepted workers would expire at the end of FY2020. H.R. 4072 would also waive the one-week
waiting period before these benefits could be paid.
At the end of the first session of the 116th Congress, none of these bil s became law.
Self-Employment and Relocation Assistance Benefits
On January 15, 2019, Senator Ron Wyden and Representative Danny Davis introduced S. 136
and H.R. 556, the Economic Ladders to End Volatility and Advance Training and Employment
Act of 2019 (the ELEVATE Act). Among other provisions, this proposal would establish new
self-employment and relocation assistance benefits for unemployed workers to be administered
by the Social Security Administration, in consultation with DOL. The self-employment assistance
benefits would provide weekly income replacement (half of prior earnings up to the maximum
weekly benefit amount in the state) for up to of 26 weeks to individuals. They would be available
to individuals who are (1) eligible for any type of UI benefit; or ineligible for any type of UI
benefit, but became involuntarily unemployed over the previous 12 weeks; or were previously
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self-employed, but lost a hiring contract, and (2) have a viable business plan approved by their
state department of labor, workforce board, or the Smal Business Administration.80
In addition, Section 3 of S. 136 and H.R. 556 would provide up to $2,000 (or more, depending on
family size) to fund to up to 90% of certain relocation expenses for eligible individuals and their
families. To be eligible for this relocation assistance, an individual must be (1) a dislocated
worker,81 (2) a long-term unemployed individual,82 or (3) an underemployed individual83 and also
have filed a claim for relocation assistance and obtained suitable work with an expectation of
obtaining such work in a new geographic region.
Domestic Violence
On March 7, 2019, Representative Karen Bass introduced H.R. 1585, the Violence Against
Women Reauthorization Act of 2019. Among many other provisions, Section 703 of H.R. 1585
would require states to consider an individual who quit employment because of sexual
harassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits. The
House passed H.R. 1585 on April 4, 2019.
Drug Testing84
On February 28, 2019, Representative Earl Carter introduced H.R. 1121, the Ensuring Quality in
the Unemployment Insurance Program (EQUIP) Act. The bil would allow states to require any
UC applicant to complete a substance abuse risk assessment. If the applicant had been deemed
high-risk, the applicant would have to pass a controlled substances test to receive UC benefits.
Those who fail the test would be ineligible for benefits for 30 days and would have to be retested
to determine eligibility.
Reemployment Services and Eligibility Assessments
On March 14, 2019, Representative Stephanie Murphy introduced H.R. 1759, the Building on
Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act. This
proposal would extend eligibility to any claimant of unemployment benefits, including those
profiled as likely to exhaust benefits (rather than limiting eligibility to those who were profiled as
likely to exhaust benefits). The House passed H.R. 1759 on April 9, 2019. On November 14,
2019, Senator Christopher Coons introduced S. 2872, the BRIDGE for Workers Act, which is the
Senate companion bil to H.R. 1759.
80 T his proposal would create a new authority to provide self-employment assistance benefits under a new T itle XIII
Part B of the Social Security Act. T his new authority would be distinct from Self-Employment Assistance programs
currently authorized under federal law and set up by states. See CRS Report R41253, The Self-Em ploym ent Assistance
(SEA) Program .
81 As defined in Section 3 of the Workforce Innovation and Opportunity Act (P.L. 113-128).
82 As defined by the newly-created Director of the Office of Reemployment Assist ance, in consultation with the
Secretary of Labor and in accordance with criteria set out under the proposed Section 1323 of the Social Security Act.
83 “As so determined” under the proposed Section 1325(4)(A)(iii) of the Social Security Act.
84 For additional background on drug testing UC applicants, including selected policy considerations and potential legal
concerns, see CRS Report R45889, Unem ployment Com pensation (UC): Issues Related to Drug Testing .
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UI Response to COVID-19
Both, H.R. 6201, the Families First Coronavirus Response Act, and H.R. 748, the CARES Act
have become law and are discussed in the section: “Enacted Laws in the 116th Congress.” Brief
summaries of alternative bil s introduced in the 116th Congress before the CARES Act became
law are below. These bil s would authorize new UI benefits or modify existing UI benefits in
response to unemployment due to COVID-19.
H.R. 6199
On March 11, 2020, Representative Steven Horsford introduced H.R. 6199, which includes the
same UI provisions as Division D, the Emergency Unemployment Insurance Stability and Access
Act of 2020, of H.R. 6201/P.L. 116-127, the Families First Coronavirus Response Act.
H.R. 6207/S. 3476
On March 11, 2020, Representative Derek Kilmer, introduced H.R. 6207, the Coronavirus Worker
Relief Act. This proposal would authorized the availability of DUA benefits under a Stafford Act
emergency declaration or disaster declaration for COVID-19.85 On March 12, Senator Gary Peters
introduced S. 3476, the Senate companion bil .
H.R. 6271
Representative Shelia Jackson Lee introduced H.R. 6271, the Unemployment Assistance for
Individuals Impacted by Quarantine Order for a National or State Public Health Emergency Act
of 2020, on March 13, 2020. The proposal would authorize the availability of DUA benefits under
a public health emergency declaration.
H.R. 6379
On March 23, 2020, Representative Nita Lowey introduced H.R. 6379, the Take Responsibility
for Workers and Families Act. Among other provisions, this bil includes a number of UI
proposals that would expand and extend UI benefits and provide temporary federal funding of
certain UI benefits.
Many of the UI provisions in this bil are similar to what was enacted under the CARES Act—for
example, the additional $600 per week benefit augmentation (the proposal would authorize the
$600 weekly benefit through December 2020, and STC beneficiaries would receive $300 per
week rather $600); temporary federal financing for Short-Time Compensation programs;
financial relief for reimbursing employers; and temporary provisions related to Railroad
Unemployment Insurance benefits. H.R. 6379 would deem that al states be in an active EB
period. Final y, H.R. 6379, would create a Pandemic Self-Employment and Job Entrant
Compensation program, which would provide benefits to self-employed workers, individuals who
had contracts for work that were cancel ed due to the virus, and a separate new-entrant benefit for
individuals such as recent college graduates who otherwise would not qualify for UI benefits.
85 For background on emergency declarations under the Stafford Act, see CRS Report R43784, FEMA’s Disaster
Declaration Process: A Prim er.
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S. 3482
On March 12, 2020, Senator Cory Booker introduced S. 3482, the Emergency U.I. Solutions Act
of 2020, a bil that would remove and federal y finance any waiting week (i.e., unpaid first week
of unemployment) under regular UC programs during a Stafford Act emergency declaration. This
proposal would also add a new federal requirement for state UC programs to eliminate any
waiting week in this circumstance.
S. 3497
On March 12, 2020, Senator Gary Peters introduced S. 3497, the Pandemic Unemployment
Assistance Act, a bil which would create a temporary 26-week benefit for unemployed persons
whose unemployment is attributable COVID-19 and are ineligible for regular UC.
S. 3523
On March 18, 2020, Senator Tom Cotton introduced S. 3523, the Coronavirus Unemployment
Insurance Act. S. 3523 would provide 100% federal funding for state UC benefit payments (and
related administrative expenses) for unemployment due to an employer temporarily suspending
operations due to COVID-19; an individual unable to work and not receiving pay due to a
COVID-19-related quarantine but expected to return to work; and for an individual not receiving
pay due to caregiving related to COVID-19. S. 3523 also contains a provision that would waive
any federal UI requirements related to certain aspects of state UC programs, which was enacted
under Section 4102(b) of FFCRA (P.L. 116-127).
S. 3534
Senator Kamala Harris introduced S. 3534, the Pandemic Disaster Assistance Act of 2020, on
March 19, 2020. Among other provisions, S. 3534 would make DUA benefits under the Stafford
Act available in response to an emergency due to a pandemic. Under this bil , DUA benefits
would be calculated as at least 1.5 times the national weekly average UI benefit. This bil would
also provide DUA benefits regardless of whether an individual is eligible for any other type of UI
benefit.
Amendments, Contractions, or Extensions to the
CARES Act and FFCRA
Since the passage of the CARES Act and FFCRA, Congress has been active in proposing changes
to the two acts. This includes amending, contracting, or expanding the new temporary benefits,
programs, time limitations, and authorities created under those two acts.
H.R. 6800
On May 12, 2020, Representative Nita Lowery introduced H.R. 6800, Health and Economic
Recovery Omnibus Emergency Solutions (Heroes) Act. The bil would, among other provisions,
amend and extend most of the provisions of the UI provisions in the CARES Act, as wel as the
EB financing provisions of FFCRA. On May 15, 2020, the House of Representatives passed the
bil on a vote of 208 to 199.
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Sections 50001-50004 of the Heroes Act would extend the authorization of the temporary UI
programs created in the CARES act, including the additional $600/week FPUC payment, the
PUA program, and the PEUC program for weeks of unemployment ending on or before January
31, 2021 (hereinafter, through January 2021). The bil would also provide a phase-out period,
meaning that individuals already receiving these UI benefits at the time of expiration (i.e., end of
January 2021) would continue to receive these UI benefits through March 2021. No FPUC, PUA,
or PEUC would be paid for any week of unemployment beginning after March 31, 2021.
Additional y, the bil would require the disregard of FPUC for purposes of al federal and
federal y-assisted programs.
Section 50004 would extend through January 2021 the 100% federal financing for UC benefits
provided during the first week of unemployment in state UC programs with no one-week waiting
period. Section 50005 would extend through January 2021 the 50% federal funding of regular UC
benefits based on service with reimbursing employers that are state and local governments,
federal y recognized Indian tribes, and nonprofit organizations that have opted to reimburse states
for UC benefits paid to their former employees, instead of paying UI taxes.
Section 50006 would al ow states flexibility in establishing income for PUA to include any
applicable data with respect to an individual’s electronical y mediated employment. This would
al ow individuals to provide items such as ride sharing applications data for determining inc ome.
Section 50007 would extend the FFCRA temporary waiver of interest payments and the accrual
of interest on federal advances (loans) to states to pay UC benefits through June 30, 2021, but it
would not reduce any underlying loan principal.
Section 50008 would extend the FFCRA provisions that temporarily make EB 100% federal y
financed (with the exception of “non-sharable” compensation [e.g., state and local workers]) from
enactment until the end of June 30, 2021.
Sections 50009 and 50010 would extend the 100% federal financing of STC (work sharing) in
states with existing programs and 50% federal financing for states that set up STC through
January 2021. Additional y, Section 50011 would create a retroactive grace period for any state
that converts from a temporary STC program into a permanent law program.
H.R. 6582
Representative Jahana Hayes introduced H.R. 6582, the Food for Working Families Act of 2020,
on April 21, 2020. H.R. 6582 would disregard FPUC payments for the purposes of the
Supplement Nutrition Assistance Programs (SNAP).86
H.R. 6680/S. 3619
On May 1, 2020, Representative Daniel Kildee introduced H.R. 6680, the Strengthening
Unemployment Insurance for Coronavirus Impacted Workers and Students Act. On May 6, 2020,
Senator Jack Reed introduced the Senate companion bil to H.R. 6680: S. 3619 (also named the
Strengthening Unemployment Insurance for Coronavirus Impacted Workers and Students Act).
H.R. 6680 and S. 3619 would amend the authorization for the FPUC payment to (1) make FPUC
payments retroactive to weeks of unemployment beginning on or after March 13, 2020 and (2)
extend the authorization for FPUC payments through weeks of unemployment beginning on or
86 For background on SNAP, see CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer
on Eligibility and Benefits.
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after January 1, 2021, with a phase-out period through June 2021 (individuals already receiving
FPUC at the time of expiration [i.e., beginning of January 2021] would continue to receive this
benefit with no FPUC payable for any beginning after June 30, 2021). These bil s would also
codify the current DOL interpretation that individuals receiving STC benefits are eligible for the
$600/week FPUC payment. Additional y, H.R. 6680 and S. 3619 would require the disregard of
FPUC and for purposes of al federal and federal y-assisted programs.
H.R. 6680 and S. 3619 would create a new, federal y-financed $300 weekly benefit for
individuals, such as students and recent graduates, who do not have a recent attachment to the
labor force.
H.R. 6680 and S. 3619 would extend the FFCRA provisions that temporarily make EB 100%
federal y financed (with the exception of “non-sharable” compensation [e.g., state and local
workers]) from enactment until the end of June 30, 2021.
H.R. 6695
Representative Nydia Velazquez introduced H.R. 6695, the Excluding Pandemic Unemployment
Compensation from Income Act, on May 1, 2020. H.R. 6695 would exclude FPUC benefit
amounts from gross income calculations for federal income tax purposes and for purposes of al
federal and federal y-assisted programs.
H.R. 6805
On May 12, 2020, Representative Ted Budd introduced H.R. 6805, the Getting Americans Back
to Work Act. H.R. 6805 would cap the total amount of UI benefits individuals may receive under
the CARES Act (i.e., UI, FPUC, PUA), not to exceed the individual’s average weekly wages
prior to UI benefit receipt, as determined by the Secretary of Labor.
S. 3696
Senator Cardin introduced S. 3696, the Health Insurance Relief for Unemployed Individuals and
Families, on May 12, 2020. S. 3696 would exclude FPUC benefit amounts in determining
eligibility for and the amount of the tax credit for health care premium assistance and for means
tested federal benefit programs.
Author Information
Julie M. Whittaker
Katelin P. Isaacs
Specialist in Income Security
Specialist in Income Security
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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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Congressional Research Service
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