The Unemployment Trust Fund: FY2024 Income, Outlays, and End-of-Year Balances

The Unemployment Trust Fund: FY2024 Income, Outlays, and End-of-Year Balances

The Unemployment Trust Fund: FY2024
May 8, 2024
Income, Outlays, and End-of-Year Balances
Katelin P. Isaacs
The joint federal-state Unemployment Insurance system provides temporary and partial wage
Specialist in Income
replacement to involuntarily unemployed workers and stabilizes the economy during recessions.
Security
Two permanent-law unemployment benefits—Unemployment Compensation (UC) and Extended

Benefits (EB)—are countercyclical, with spending and weekly benefit payments that increase
Julie M. Whittaker
automatically during a recession. States administer unemployment benefits under their state laws,
Specialist in Income
with U.S. Department of Labor (DOL) oversight, resulting in 53 different UC programs operated
Security
in the states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

The Unemployment Trust Fund (UTF) in the U.S. Treasury accounts for transactions related to

UC and EB. The UTF is a single trust fund with 59 accounts: the Employment Security
Administration Account (ESAA); the Extended Unemployment Compensation Account (EUCA); the Federal Unemployment
Account (FUA); 53 state accounts (including the District of Columbia, Puerto Rico, and the U.S. Virgin Islands); the Federal
Employees Compensation Account (FECA); and two accounts related to the Railroad Retirement Board (RRB).
This report provides a figure that displays FY2024 flows of funding through the UTF. Specifically, this figure includes
projections from DOL related to the income, outlays, and end-of-year balances of the UTF. This report also provides a
description, including relevant statutory authorities, of UTF sources of revenue, accounts, statutory transfers, federal loans to
states, UC appropriations out of the ESAA account, and outlays on unemployment benefits.
For a broad overview of the UC program, see CRS In Focus IF10336, The Fundamentals of Unemployment Compensation.
For additional information on how UC benefits are funded through the UTF, see CRS Report RS22077, Unemployment
Compensation (UC) and the Unemployment Trust Fund (UTF): Funding UC Benefits.

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Contents
Introduction ..................................................................................................................................... 1
The Unemployment Trust Fund....................................................................................................... 1
Sources of Unemployment Trust Fund Revenue ....................................................................... 4
FUTA .................................................................................................................................. 4
SUTA .................................................................................................................................. 4
UTF Accounts ........................................................................................................................... 5
ESAA .................................................................................................................................. 5
EUCA.................................................................................................................................. 6
FUA .................................................................................................................................... 6
State Unemployment Accounts ........................................................................................... 7
UTF Statutory Transfers ............................................................................................................ 7
End-of-Fiscal-Year Transfer Above Ceiling from ESAA to EUCA ................................... 7
Monthly 20% ESAA to EUCA Transfer ............................................................................. 8
End-of-Fiscal-Year Transfer Above Ceiling from EUCA to FUA ...................................... 8
Reed Act Distributions ........................................................................................................ 8
Federal Loans to States ............................................................................................................. 9
UC Appropriations out of the ESAA Account .......................................................................... 9
State UI Administration Grants ......................................................................................... 10
Federal Administration...................................................................................................... 10
Other Appropriations out of ESAA: ES/BLS/VETS ......................................................... 11
UC, UCFE, UCX, and EB Benefits ........................................................................................ 12

Figures
Figure 1. The Unemployment Trust Fund ....................................................................................... 3

Appendixes
Appendix. Glossary of Acronyms ................................................................................................. 13

Contacts
Author Information ........................................................................................................................ 13

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Introduction
The Unemployment Insurance (UI) system is constructed as a joint federal-state partnership in
which the Unemployment Compensation (UC) program and the UC benefit are the foundation of
the UI system. Created under the Social Security Act of 1935 (P.L. 74-271), the UC program
provides income support through weekly benefit payments. Although there are broad
requirements under federal law regarding UC benefits and financing, the specifics are set out
under each state’s laws. States administer UC benefits with U.S. Department of Labor (DOL)
oversight, resulting in 53 different UC programs operated in the states, the District of Columbia,
Puerto Rico, and the U.S. Virgin Islands.1
The Federal-State Extended Unemployment Compensation Act of 1970 (P.L. 91-373)2 established
the Extended Benefit (EB) program to provide additional weeks of unemployment benefits if high
unemployment exists within a state. After UC benefits are exhausted, the EB program, also
administered by states, may provide up to an additional 13 or 20 weeks of benefits, depending on
worker eligibility, state law, and economic conditions in the state. Under permanent law, the EB
program is funded 50% by the federal government and 50% by the states.3
Designated as a trust fund for federal accounting purposes, the Unemployment Trust Fund (UTF)
in the U.S. Treasury accounts for UC and EB financial transactions. The UTF’s structure, which
involves 59 separate accounts, and complexity, which includes four types of statutory transfers
between key UTF accounts, present challenges in tracking the annual flow of UI income and
outlays. Congress may be interested in understanding how federal unemployment tax revenue
moves through UTF accounts. In particular, there may be interest in which UTF flows are based
upon statute and statutory thresholds and which flows require annual appropriations.
This report illustrates the operations of the UTF using FY2024 projections from DOL on UI
income, outlays, and end-of-year balances. Included is a description of sources of revenue, UTF
accounts, statutory transfers, federal loans to states, UC appropriations out of the relevant UTF
account, and outlays on UI benefits. Relevant statutory authorities are also provided throughout.
The Appendix provides a glossary of acronyms used in this report.
The Unemployment Trust Fund
The UTF’s authority and structure are set out under Title IX of the Social Security Act (SSA).4
The UTF is a single trust fund with 59 accounts: the Employment Security Administration
Account (ESAA); the Extended Unemployment Compensation Account (EUCA); the Federal
Unemployment Account (FUA); 53 state accounts (including the District of Columbia, Puerto
Rico, and the U.S. Virgin Islands); the Federal Employees Compensation Account (FECA); and
two accounts related to the Railroad Retirement Board (RRB).
The UI system is financed by federal payroll taxes under the Federal Unemployment Tax Act
(FUTA) and by state payroll taxes under the State Unemployment Tax Acts (SUTA). All UI tax

1 For an overview of the UC program, see CRS In Focus IF10336, The Fundamentals of Unemployment Compensation.
The District of Columbia, Puerto Rico, and the U.S. Virgin Islands are included in the definition of state under the
Federal Unemployment Tax Act (see 26 U.S.C. §3306(j)(1)).
2 26 U.S.C. §3304 note.
3 For additional information on UC and EB, see CRS Report R46687, Unemployment Insurance (UI) Benefits:
Permanent-Law Programs and the COVID-19 Pandemic Response.
4 42 U.S.C. §§1101-1111.
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receipts and outlays for benefits and administration flow through the U.S. Treasury and thus
affect federal revenue, outlays, and the overall financial position (deficit or surplus) of the federal
government. This trust fund designation is used to accumulate legal spending authority that is
available automatically when needed. The revenue and the outlays of the UI system are counted
in the federal budget.5
For additional information on the UTF, see CRS Report RS22077, Unemployment Compensation
(UC) and the Unemployment Trust Fund (UTF): Funding UC Benefits.
Figure 1 displays FY2024 flows of funding through the UTF.

5 For an overview of federal trust funds, see Congressional Budget Office, The Outlook for Major Federal Trust Funds:
2020 to 2030, September 2, 2020, https://www.cbo.gov/publication/56523.
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Figure 1. The Unemployment Trust Fund

Source: Congressional Research Service; FY2024 program data from U.S. Department of Labor, UI Outlook: President’s Budget 2025.
Notes: “FUTA” is Federal Unemployment Tax Act. “SUTA” is State Unemployment Tax Acts. “ESAA” is Employment Security Administration Account. “EUCA” is
Extended Unemployment Compensation Account. “FUA” is Federal Unemployment Account. “UI” is Unemployment Insurance. “EB” is Extended Benefits. “UC” is
Unemployment Compensation. “UCFE” is Unemployment Compensation for Federal Employees. “UCX” is Unemployment Compensation for Former (ex-)
Servicemembers. Not presented in this figure: (1) an additional reimbursement of $0.36 bil ion from federal agencies to states for UCX and UCFE and (2) any
repayments from Unemployment Trust Fund accounts to the General Fund.
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Sources of Unemployment Trust Fund Revenue6
Sources of UTF revenue are depicted in Figure 1 as gray ovals.
The federal-state UI program is financed by federal payroll taxes under FUTA and by state
payroll taxes under SUTA.7
FUTA
The Federal Unemployment Tax Act of 1939 is set out under Title 26, Sections 3301-3311, of the
U.S. Code and establishes a federal payroll tax that employers pay to fund both federal and state
administrative costs as well as the federal share of the EB program (50%), loans to insolvent state
UC accounts, and state employment services. If a state UC program complies with all federal
requirements, the net FUTA tax rate for employers is 0.6% on the first $7,000 of each worker’s
earnings. Federal law defines which jobs a state UC program must cover for the state’s employers
to avoid paying the maximum FUTA tax rate (6.0%) on the first $7,000 of each employee’s
annual pay.8
FUTA revenues are deposited in the U.S. Treasury and credited to the ESAA within the UTF (see
the section on “ESAA”).
In FY2024, income from FUTA was projected to be $7.41 billion.9
For additional information on FUTA, see CRS Report R44527, Unemployment Compensation:
The Fundamentals of the Federal Unemployment Tax (FUTA).
SUTA
States levy their own payroll taxes on employers to fund regular UC benefits and the state share
of the EB program (50%). The SUTA tax rate on an employer is, in most states, based on the
amount of UC benefits paid to former employees. Generally, the more UC benefits paid to its

6 In addition to FUTA and SUTA revenue, there is additional income to the UTF from federal agencies, which
reimburse states for payments of Unemployment Compensation for Federal Employees (UCFE) and Unemployment
Compensation for Former (ex-) Servicemembers (UCX). See the discussion on “UC, UCFE, UCX, and EB Benefits.”
In FY2024, reimbursements from federal agencies for UCFE and UCX were estimated to be $0.36 billion.
7 The atypical arrangement of state-funded benefits and federally funded administration has its roots within the
development of the Social Security program. In its 1935 report, the President’s Committee on Economic Security
recommended that federal grants be provided to the states for the administration of UC benefits. The committee
asserted that the FUTA would be an adequate source of funds for federal and state administration and provide a level
playing field for all states. By structuring the funding for administration to be paid from FUTA revenue, the federal
government could require proper standards of administration at the state level. States today must comply with federal
tax laws regarding the administration of their UC programs or face increased FUTA taxes. The full 1935 President’s
Committee report can be accessed at https://www.ssa.gov/history/reports/ces5.html. (See the chapter titled
“Unemployment Compensation: Outline of Federal Act.”)
8 From 1984 until July 1, 2011, the net FUTA tax was 0.8% on the first $7,000 of each employee’s earnings. Beginning
July 1, 2011, the net FUTA rate decreased to 0.6%. Table A1 in CRS Report R44527, Unemployment Compensation:
The Fundamentals of the Federal Unemployment Tax (FUTA), provides the history of FUTA tax rates and tax bases.
9 Unless otherwise stated, all FY2024 income, outlays, and end-of-year balances cited in this report are from DOL,
Unemployment Insurance Program Outlook: President’s Budget 2025, https://oui.doleta.gov/unemploy/pdf/
prez_budget_25.pdf.
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former employees, the higher the tax rate of the employer, up to a maximum established by state
law.10
SUTA revenues are deposited into the relevant state account (see “State Unemployment
Accounts”) in the UTF and, under Title 26, Section 3304(a)(4), of the U.S. Code, may be used
only to pay for the state’s UC benefits and the state’s portion of EB payments.
In FY2024, income from SUTA was projected to be $44.87 billion.
UTF Accounts
UTF accounts are depicted in Figure 1 as light blue boxes.
Although the UTF is a single trust fund, it has 59 accounts: ESAA; EUCA; FUA; 53 state
accounts (including the District of Columbia, Puerto Rico, and the U.S. Virgin Islands); FECA;
and two accounts related to the RRB. The FECA and the two RRB accounts are not depicted in
Figure 1 to simplify the graphical presentation of UTF flows.11
ESAA
The ESAA account is authorized under SSA Section 901.12
All FUTA revenue is credited to the ESAA account. Under SSA Section 901(c),13 funds from the
ESAA account are made available through the annual federal appropriations process,14 which
designates these funds to be used by DOL for the costs of administering the state UC programs as
well as other expenditures, including the federal share of EB (50%), loans to insolvent states, and
some other purposes described below (see the section on “UC Appropriations out of the ESAA
Account”).
Under SSA Section 901(d)(1),15 any additional FUTA paid by employers because the state has an
outstanding, unpaid loan from FUA is transferred from ESAA to the FUA (see the sections on
“Federal Loans to States” and “FUA”). Additionally, under SSA Section 905(b)(1),16 each month,
20% of the FUTA deposits into the ESAA are transferred to EUCA, which funds the federal share
of EB (see section on “Monthly 20% ESAA to EUCA Transfer”). Under SSA Section 901(f),17 at
the close of the fiscal year, the ESAA balance is limited to 40% of the amount of the total
appropriation for the fiscal year (e.g., $1.73 billion for FY2023 and $1.87 billion for FY2024),

10 For recent state-specific information on SUTA taxable wage bases and SUTA minimum, maximum and, new
employer tax rates, see DOL, “Significant Provisions of State Unemployment Insurance Laws, Effective January
2024,” https://oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2024.pdf.
11 FECA reimbursements are mentioned in the notes to Figure 1: In FY2024, there was an additional reimbursement of
$0.36 billion from federal agencies to states for UCFE and UCX. These UCFE and UCX reimbursements flow through
FECA.
Unlike other types of unemployment benefits, RRB unemployment benefits are not administered by states or with
oversight provided by DOL. Instead, RRB unemployment benefits are administered by the RRB. For more information,
see RRB, Railroad Unemployment and Sickness Benefits, 2023, https://rrb.gov/sites/default/files/2023-06/2023%20UB-
9%20%28web%29.pdf.
12 42 U.S.C. §1101.
13 42 U.S.C. §1101(c).
14 Not all amounts from ESAA are made available through the annual federal appropriations process. See the sections
on “End-of-Fiscal-Year Transfer Above Ceiling from ESAA to EUCA” and “Monthly 20% ESAA to EUCA Transfer.”
15 42 U.S.C. §1101(d)(1).
16 42 U.S.C. §1105(b)(1).
17 42 U.S.C. §1101(f).
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with the excess to be deposited into the EUCA at the beginning of the next fiscal year (see the
section on “End-of-Fiscal-Year Transfer Above Ceiling from ESAA to EUCA”).
For additional information on the role of ESAA in funding state administration of UC benefits,
see CRS In Focus IF10838, Funding the State Administration of Unemployment Compensation
(UC) Benefits.
EUCA
The EUCA account is authorized under SSA Section 905.18
If a state has an active EB program,19 EUCA distributions are made for the federal portion (50%)
of EB payments. There is no EB projected to be payable in states in FY2024 and, therefore, no
transfer from EUCA to any state unemployment account.
Under SSA Section 905(b)(2),20 the EUCA balance is limited to the maximum of $750 million or
0.5% of covered wages ($45.23 billion for FY2024).21 If the EUCA balance exceeds the
limitation, the excess is distributed to the FUA account (see section on “End-of-Fiscal-Year
Transfer Above Ceiling from EUCA to FUA”).
Although EUCA is projected to have $1.98 billion in cash at the end of FY2024, the net end-of-
year balance for the EUCA account is projected to be negative (-$9.60 billion). EUCA’s negative
balance is due to borrowing attributable to (1) the Great Recession (December 2007 to June 2009)
and (2) the COVID-19 recession (February to April 2020). Under SSA Section 905(d),22 EUCA
has the authority to borrow funds from the General Fund of the U.S. Treasury without fiscal year
limitations.
In FY2024, the EUCA is projected to have two large outstanding debts. First, EUCA is projected
to have approximately $5.5 billion in debt to the General Fund of the U.S. Treasury because of
debt incurred from paying the statutorily obligated EB during the COVID-19 recession. Second,
EUCA is projected to owe an additional $6.08 billion via an inter-account transfer loan from
FUA, which was incurred paying for statutorily obligated EB during the Great Recession.23
FUA
The FUA account is authorized under SSA Section 902.24

18 42 U.S.C. §1105.
19 For additional information on EB, including trigger requirements for states to have active EB programs, see CRS
Report R46687, Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic
Response.
20 42 U.S.C. §1105(b)(2).
21 Covered wages refers to wages subject to FUTA. P.L. 105-33 increased the statutory ceiling on the FUA from 0.25%
to 0.5% of covered wages, effective October 1, 2001. P.L. 102-318 had previously lowered the FUA ceiling from
0.625% to 0.25% and increased the ceiling for EUCA from 0.375% to 0.5%. Prior to that, P.L. 100-203 had increased
the FUA ceiling from 0.125% to 0.625% and raised the EUCA ceiling from 0.125% to 0.375%.
22 42 U.S.C. §1105(d).
23 Section 910 of SSA (42 U.S.C. §1110) allows for inter-account borrowing among ESAA, EUCA, and FUA.
24 42 U.S.C. §1102.
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In addition to any transfer from EUCA, as described above, under SSA Section 901(d)(1),25 the
FUA is credited with the additional taxes paid by employers when a reduced credit against federal
taxes exists because the state has an outstanding unpaid loan from FUA.26
FUA funds are distributed as loans to states through the state unemployment accounts (see the
section on “Federal Loans to States”). Under SSA Section 902(a),27 the FUA balance is limited to
the maximum of $550 million or 0.5% of covered wages ($45.23 billion for FY2024). If this FUA
balance ceiling is met and the same ceiling is met for EUCA, then Reed Act distributions are
made (see the section on “Reed Act Distributions”).
In FY2024, the end-of-year balance for the FUA account is projected to be $12.79 billion.
State Unemployment Accounts
Under SSA Section 904,28 SUTA revenues are deposited into the relevant state accounts in the
UTF.
In FY2024, the end-of-year balance for the state unemployment accounts is projected to be
$76.65 billion. In addition to this balance, the state unemployment accounts are projected to owe
$23.02 billion in federal loans in FY2024 (see section on “Federal Loans to States”).
UTF Statutory Transfers
Statutory transfers are depicted in Figure 1 as lines with arrows. These lines are either solid (see
“Monthly 20% ESAA to EUCA Transfer”) or dotted (see “End-of-Fiscal-Year Transfer Above
Ceiling from ESAA to EUCA,” “End-of-Fiscal-Year Transfer Above Ceiling from EUCA to
FUA,” and “Reed Act Distributions”), depending on whether the transfer is automatic (solid) or
certain conditions must be met for a transfer to occur (dotted).
Four types of statutory transfers among accounts in the UTF are presented in Figure 1:29
1. End-of-fiscal-year transfer from ESAA to EUCA,
2. Monthly 20% transfer from ESAA to EUCA,
3. End-of-fiscal-year transfer from EUCA to FUA, and
4. Reed Act distributions (from FUA to states).
End-of-Fiscal-Year Transfer Above Ceiling from ESAA to EUCA
Under SSA Section 901(f),30 any funds in excess of the amount equal to 40% of the total
appropriation from the ESAA are taken out of the ESAA at the end of the fiscal year. The excess
funds are deposited into the EUCA at the beginning of the next fiscal year. The FY2023 end-of-
year balance for the ESAA account was $2.31 billion, which was above the 40% ESAA balance

25 42 U.S.C. §11101(d)(1).
26 Section 901(d)(2) of SSA (42 U.S.C. §11101(d)(2)) requires that the additional tax deposited into the FUA be
credited against the debt owed by the state of the employer.
27 42 U.S.C. §1102(a).
28 42 U.S.C. §1104.
29 UTF accounts may also have transfers for repayment to the General Fund of the U.S. Treasury to repay loans as well
as interest payments accrued on loans from the General Fund. Details on these transfers are found in DOL,
Unemployment Insurance Outlook: President’s Budget 2024 under the “Outgo” heading for each UTF account.
30 42 U.S.C. §1101(f).
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limit for FY2023 ($1.73 billion). This resulted in $0.58 billion being deposited into the EUCA at
the beginning of FY2024.31
Monthly 20% ESAA to EUCA Transfer
Under SSA Section 901(f),32 each month, the ESAA distributes 20% of the net monthly activity to
the EUCA.33
In FY2024, monthly transfers from ESAA to EUCA are projected to total $1.49 billion.
End-of-Fiscal-Year Transfer Above Ceiling from EUCA to FUA
Under SSA Section 905(b),34 the EUCA balance is limited to the maximum of $750 million or
0.5% of covered wages ($45.23 billion for FY2024). If the EUCA balance exceeds the limitation,
the excess is distributed to the FUA account.
In FY2024, there is no projected statutory transfer from EUCA to FUA, as the account balance (-
$9.60 billion) is projected to be under the ceiling for FY2024 of $45.23 billion.
Reed Act Distributions
As explained above, at the end of the fiscal year, there is a limitation on the balance in the ESAA:
The account balance cannot exceed 40% of the prior fiscal year’s congressional appropriation
(SSA Section 901(f)35). If the balance in the ESAA exceeds this limitation, the excess is
distributed to EUCA. After the distribution, if the balance in the EUCA exceeds the applicable
EUCA limitation,36 the excess is distributed to the FUA. If after the distribution from the EUCA,
the FUA balance exceeds the limitation,37 the excess is distributed, as a Reed Act distribution, to
the states under SSA Section 903.38
In FY2024, there are no projected Reed Act distributions, as the account balances for EUCA (-
$9.60 billion) and FUA ($12.79 billion) were both under the ceiling for FY2024 of $45.23 billion.
For additional information on Reed Act distributions, see CRS Report RS22006, The
Unemployment Trust Fund and Reed Act Distributions.

31 The FY2024 projected ESAA end-of-year balance reflects an expected $1.54 billion transfer to EUCA at the end of
FY2024 based upon the balance of funds in the ESAA in excess of the FY2024 balance limit of $1.87 billion. The
projected $1.54 billion from the ESAA would be deposited into the EUCA in FY2025.
32 42 U.S.C. §1101(f).
33 Net monthly activity includes all revenues credited to the ESAA less any FUTA refunds. It also excludes any
additional taxes collected to pay for outstanding state UTF loans. (For information on these additional taxes, see the
section “Federal Tax Increases on Outstanding Loans Through Credit Reductions” in CRS Report RS22954, The
Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States.
34 42 U.S.C. §1101(b).
35 42 U.S.C. §1101(f).
36 See the discussion on “EUCA.”
37 See the discussion on “FUA.”
38 42 U.S.C. §1103. In addition, Congress has built on the existing authority for Reed Act distributions to provide
special, one-time transfers to states, including, for example, the incentive payments for expanded UC eligibility under
Section 2003 of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) and the emergency administrative
grants under Section 4102(a) of the Families First Coronavirus Response Act (P.L. 116-127).
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Federal Loans to States
Federal loans to states are depicted in Figure 1 as a solid line with an arrow between the FUA
account and the state unemployment accounts.
If states do not have enough funding in their state accounts, Title XII of the SSA39 allows the
states to borrow funds from the FUA within the UTF. States may borrow from other sources,
although some states are prohibited from doing so under state laws.40 The issuing of a loan to the
state would require that the FUA redeem securities. This redemption would decrease the federal
debt. If the FUA is insolvent and the other federal accounts within the UTF do not have sufficient
balances to lend the funds that states need (as occurred in FY2010-FY2015 and began again in
May 2020), Title XII of the SSA allows the FUA to borrow funds from the U.S. Treasury. If
Treasury issues new securities in order to lend funds to the FUA, this would increase the federal
debt. When a state pays back the loan from the FUA, the FUA then uses those funds to repay its
debt to Treasury, and the federal debt decreases.
In FY2024, there is a projected $5.06 billion in additional federal loans to states and $6.84 billion
in interest and loan repayments from states to the FUA account. States are projected to have a
cumulative $23.0 billion in outstanding loans at the end of FY2024.
For additional information on federal loans to states, see CRS Report RS22954, The
Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States.
UC Appropriations out of the ESAA Account
UC appropriations out of the ESAA account are depicted in Figure 1 as green lines with arrows
ending with large “$” symbols. Appropriated amounts, along with their descriptions, are
displayed as green boxes with rounded corners.
Each fiscal year, funds are made available through the appropriations process to make
distributions of FUTA revenue for state administration, the federal costs of administration, and
other purposes—for example, the Employment Service (ES), Bureau of Labor Statistics (BLS),
and Veterans’ Employment and Training Service (VETS). Most of these UC appropriations are
accounted for through DOL’s Employment and Training Administration’s State Unemployment
Insurance and Employment Service Operations (SUIESO) funding.41

39 42 U.S.C. §§1321-1324.
40 “States are also able to use private sector borrowing instruments, such as revenue bonds, to repay the federal
government for their outstanding loans…. [E]ight states used the private market to finance UI debt following the 2007
recession. Since the beginning of the 2020 recession no states have utilized private sector borrowing instruments to
repay federal advances. Numerous states were able to minimize or repay federal advances through alternative funding
sources including funding made available through the CARES Act in 2020 [P.L. 116-136 ] and the [American Relief
Plan] Act in 2021 [P.L. 117-2]” (DOL, State Unemployment Insurance Trust Fund Solvency Report 2024,
https://oui.doleta.gov/unemploy/docs/trustFundSolvReport2024.pdf).
41 DOL, FY 2025 Budget, State Unemployment Insurance and Employment Service Operations, https://www.dol.gov/
sites/dolgov/files/general/budget/2025/CBJ-2025-V1-07.pdf. BLS appropriations, including those appropriated from
the ESAA, are documented at DOL, FY 2025 Budget, Bureau of Labor Statistics, https://www.dol.gov/sites/dolgov/
files/general/budget/2025/CBJ-2025-V3-01.pdf.
For the purposes of Figure 1, FUTA revenue appropriated for the DOL-Office of Inspector General (DOL-OIG) is not
listed. For example, in FY2024, under P.L. 118-47, the Consolidated Appropriations Act, 2024, $5,841,000 was
appropriated out of the ESAA account in the UTF for salaries and expenses of the DOL-OIG. DOL-OIG
appropriations, including those appropriated from the ESAA, are documented at DOL, FY 2025 Budget, Office of the
Inspector General, https://www.dol.gov/sites/dolgov/files/general/budget/2025/CBJ-2025-V3-04.pdf.
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State UI Administration Grants
SSA Section 901(c)(1)(A)(I)42 authorizes administrative grants to the states (subject to
appropriations limits) from the ESAA. The discretionary annual appropriations to DOL for
administrative expenses are based upon DOL’s assessment of state budgetary requirements, not
the size of FUTA collections.43 These appropriations customarily include a base level of funding
as well as an additional contingent appropriation. The appropriations language customarily
provides a baseline estimate of national unemployment as measured by the volume of
unemployment compensation claims expected to be filed per week—the average weekly insured
unemployment (AWIU). Additionally, the contingent funding includes a trigger based upon the
average volume of weekly UC claims exceeding the AWIU baseline. For example, under P.L.
118-47, the Further Consolidated Appropriations Act, 2024, for every 100,000 increase in the
total AWIU above the 3,075,000 baseline, an additional $28.6 million in funding would be
available.
Once the AWIU is above the contingent appropriation threshold, DOL notifies the Office of
Management and Budget, which then releases funds from the contingent appropriation. If the
need for contingency funds exceeds the base appropriation, but the national AWIU is less than the
contingent appropriation threshold, then either Congress must enact a supplemental appropriation
or states must reduce administrative expenses or provide additional state funding from different
revenue streams or state general funds (as SUTA funds may pay only for UC and EB).44
As shown in Figure 1, in FY2024, DOL projected that $3.36 billion would be appropriated for
state administrative grants.
For additional information on funding state UI administration, see CRS In Focus IF10838,
Funding the State Administration of Unemployment Compensation (UC) Benefits.
Federal Administration
SSA Section 901(c)(1)(B)45 authorizes expenditures out of the ESAA (subject to appropriations)
to support the necessary expenses of DOL for the performance of its functions as required by UC
law (i.e., under SSA and FUTA), VETS, and any federal unemployment compensation law. In
FY2024, DOL projected that $0.26 billion would be appropriated for federal UI administration
from the ESAA.

42 42 U.S.C. §1101(c)(1)(A)(I).
43 DOL currently uses the Resource Justification Model to collect information from states about administrative
expenditures. See DOL, ET Handbook 410, 6th Edition, Resource Justification Model, https://www.dol.gov/sites/
dolgov/files/ETA/advisories/UIPL/2019/UIPL_2-20_Attachment_1.pdf.
44 For example, the Supplemental Appropriations Act of 2008 (P.L. 110-252) provided an additional $110 million in
administrative funding to compensate the states for the administrative costs of processing the UC claims workload for
the balance of FY2008. (For background on this issue, see DOL, Unemployment Insurance Program Letter 07-08,
January 17, 2008, https://oui.doleta.gov/dmstree/uipl/uipl2k8/uipl_0708.pdf.)
45 42 U.S.C. §1101(c)(1)(B).
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Other Appropriations out of ESAA: ES/BLS/VETS46
SSA Section 901(c)(1)(A)(ii)47 authorizes expenditures out of the ESAA (subject to
appropriations) for the establishment and maintenance of public employment offices (ES)48 based
on the share of the workforce that is in covered employment (see SSA Section 901(c)(4)49). The
proportion of ES funding provided from ESAA ranged from 85% in 1973 to 97% in 1980 (as UC
program coverage had increased) and has remained at 97% through the present.50
Similarly, SSA Section 901(c)(1)(A)(iii)51 authorizes expenditures for carrying out the activities
of VETS.52
While there is no similar authorizing language for expenditures out of the ESAA to BLS within
Title IX of SSA, DOL’s FY2025 budget justification provides information on how BLS activities
support the ES and UC programs. For example:
Programs in this area help fulfill many requirements of the Wagner-Peyser Act as amended
by the Workforce Innovation and Opportunity Act (WIOA) of 2014, including
requirements that the Secretary of Labor “… develop and maintain the elements of the
workforce and labor market information system …” as well as develop and maintain
national projections of employment opportunities by occupation and industry. This
legislation requires the development of information on jobs in demand to support states’
efforts to better train for the hiring needs of businesses.53
Additionally:
The BLS operates the CES [Current Employment Statistics], Quarterly Census of
Employment and Wages (QCEW), Occupational Employment and Wage Statistics
(OEWS), and LAUS [Local Area Unemployment Statistics] programs in cooperation with
the states and territories. As noted within their respective descriptions, these programs

46 All FY2024 projections referenced in this report, including appropriations out of the ESAA, come from DOL’s UI
Outlook: President’s Budget 2025. While annual appropriations made for the purposes of ES, BLS, and VETS result in
outlays outside of the UTF, there are some program interactions and related policy goals. Additionally, DOL’s UI
Outlook characterizes these three types of appropriations under “State Administration”—see DOL, Unemployment
Insurance Program Outlook: President’s Budget 2025, p. 14.
47 42 U.S.C. §1101(c)(1)(A)(ii).
48 Building on prior experience with labor exchange services, the Wagner-Peyser Act (29 U.S.C. §49 et seq.) was
enacted in 1933 to establish a more uniform federal-state system of public employment service offices from the
existing mix of state and local offices. The act created the ES within DOL to promote the establishment and
maintenance of the federal-state public employment service. The ES is federally funded, primarily by appropriations
from FUTA via the ESAA. The ES is the central component of most states’ workforce development systems, as
services are universally accessible to all jobseekers and employers. Reflecting this central role, the Workforce
Innovation and Opportunity Act (WIOA; 29 U.S.C. §3101 et seq.), enacted in 2014, requires ES offices to be integrated
by being physically located with One-Stop centers and prohibits standalone ES offices. In addition, because ES staff
conduct the work test for the receipt of unemployment benefits, ES is also a critical component of the UC system.
For additional information on WIOA, One-Stop Centers, ES, and UC work tests, see CRS Report R44252, The
Workforce Innovation and Opportunity Act and the One-Stop Delivery System.
49 42 U.S.C. §1101(c)(4).
50 Carol R. Lubin, “The Employment Service Role in Unemployment Compensation,” in National Commission on
Unemployment Compensation, Unemployment Compensation: Studies and Research, vol. 3, 1980, p. 877,
https://oui.doleta.gov/dmstree/misc_papers/advisory/ncuc/uc_studies_and_research/ncuc-vol3.pdf#page=256.
51 42 U.S.C. §1101(c)(1)(A)(iii).
52 For more information on VETS, see DOL, “Veterans’ Employment and Training Service,” https://www.dol.gov/
agencies/vets.
53 DOL, FY 2025 Congressional Budget Justification: Bureau of Labor Statistics, p. 19, https://www.dol.gov/sites/
dolgov/files/general/budget/2025/CBJ-2025-V3-01.pdf.
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compose the BLS Labor Market Information (LMI) Cooperative Statistical Program,
which is conducted in accordance with the provisions of the Wagner-Peyser Act as
amended by WIOA. The BLS uses cooperative agreements to fund the states for these
programs. BLS regional staff, under the direction of the Office of Field Operations in the
national office, negotiate and monitor LMI cooperative agreements.54
In FY2024, DOL projected that $1.12 billion would be appropriated for ES, BLS, and VETS.
UC, UCFE, UCX, and EB Benefits
Outlays for UC, UCFE, UCX, and EB benefits are depicted in Figure 1 with a dark blue box.
The Social Security Act of 1935 (P.L. 74-271)55 authorizes the joint federal-state UC program to
provide unemployment benefits. Most states provide up to a maximum of 26 weeks of UC
benefits. Former federal workers may be eligible for unemployment benefits through the
Unemployment Compensation for Federal Employees (UCFE) program. Former U.S. military
servicemembers may be eligible for unemployment benefits through the Unemployment
Compensation for Ex-Servicemembers (UCX) program. 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.
The EB program was established by the Federal-State Extended Unemployment Compensation
Act of 1970 (P.L. 91-373).56 P.L. 91-373 may extend the duration (i.e., number of weeks) of
unemployment benefits (extended benefits) at the state level if certain economic conditions exist
within the state.
In FY2024, outlays on UC, UCFE, and UCX benefits were projected to be $39.13 billion. No EB
was projected to be payable in FY2024.
For additional information on UC, UCFE, UCX, and EB benefits, see CRS Report R46687,
Unemployment Insurance (UI) Benefits: Permanent-Law Programs and the COVID-19 Pandemic
Response.

54 DOL, FY 2025 Congressional Budget Justification: Bureau of Labor Statistics, p. 20.
55 Titles III, IX, and XII.
56 26 U.S.C. §3304 note.
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Appendix. Glossary of Acronyms
AWIU
Average weekly insured unemployment
BLS
Bureau of Labor Statistics
EB
Extended Benefits
ES
Employment Service
ESAA
Employment Security Administration Account
EUCA
Extended Unemployment Compensation Account
FECA
Federal Employees Compensation Account
FUA
Federal Unemployment Account
FUTA
Federal Unemployment Tax Act
DOL
U.S. Department of Labor
RRB
Railroad Retirement Board
SSA
Social Security Act
SUIESO
State Unemployment Insurance and Employment Service Operations
SUTA
State Unemployment Tax Acts
UC
Unemployment Compensation
UCFE
Unemployment Compensation for Federal Employees
UCX
Unemployment Compensation for Former (ex-) Servicemembers
UI
Unemployment Insurance
UTF
Unemployment Trust Fund
VETS
Veterans’ Employment and Training Service

Author Information

Katelin P. Isaacs
Julie M. Whittaker
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
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
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copy or otherwise use copyrighted material.

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