Temporary Extension of Unemployment Benefits: Emergency Unemployment Compensation (EUC08)
Temporary Extension of Unemployment
Benefits: Emergency Unemployment
Compensation (EUC08)
Katelin P. Isaacs
Analyst in Income Security
Julie M. Whittaker
Specialist in Income Security
March 18, 2011
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Temporary Extension of Unemployment Benefits: EUC08
Summary
In July 2008, a new temporary unemployment benefit, the Emergency Unemployment
Compensation (EUC08) program, began. The program’s authorization ends on January 3, 2012.
EUC08 was created by P.L. 110-252, and it has been amended by P.L. 110-449, P.L. 111-5, P.L.
111-92, P.L. 111-118, P.L. 111-144, P.L. 111-157, P.L. 111-205, and P.L. 111-312. Most recently,
P.L. 111-312 extends the authorization of the EUC08 program, but does not change the structure
of the program or augment benefits. This temporary unemployment insurance program provides
up to 20 additional weeks of unemployment benefits to certain workers who have exhausted their
rights to regular unemployment compensation (UC) benefits. A second tier of benefits provides
up to an additional 14 weeks of benefits (for a total of up to 34 weeks of EUC08 benefits for all
unemployed workers). A third tier is available in states with a total unemployment rate of at least
6% and provides up to an additional 13 weeks of EUC08 benefits (for a total of up to 47 weeks of
EUC08 benefits in certain states). A fourth tier is available in states with a total unemployment
rate of at least 8.5% and provides up to an additional six weeks of EUC08 benefits (for a total of
up to 53 weeks of EUC08 benefits in certain states).
All tiers of EUC08 benefits are temporary and expire the week ending on or before January 3,
2012. Those beneficiaries receiving tier I, II, III, or IV of EUC08 benefits before December 31,
2011 (January 1, 2012, in New York) are “grandfathered” for their remaining weeks of eligibility
for that particular tier only. There will be no new entrants into any tier of the EUC08 program
after December 31, 2011. If an individual is eligible to continue to receive his or her remaining
EUC08 benefit tier after December 31, 2011, that individual would not be entitled to tier II
benefits once those tier I benefits were exhausted. No EUC08 benefits—regardless of tier—are
payable for any week after June 9, 2012.
On December 17, 2010, the President signed P.L. 111-312, the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010. P.L. 111-312 extends the authorization
for the EUC08 program until January 3, 2012, and the 100% federal financing of the Extended
Benefit (EB) program through January 4, 2012.
This report will be updated to reflect current congressional action or programmatic changes.
Individuals should contact their state’s unemployment agency to obtain information on how to
apply for and receive EUC08 benefits. The U.S. Department of Labor maintains a website with
links to each state’s agency at http://www.workforcesecurity.doleta.gov/map.asp.
Congressional Research Service
Temporary Extension of Unemployment Benefits: EUC08
Contents
Emergency Unemployment Compensation ..................................................................................... 1
How Does an Eligible Individual Receive the EUC08 Benefit? ............................................... 3
How Much is an Eligible Individual’s Weekly EUC08 Benefit? .............................................. 3
Who Was Eligible for the $25 FAC Benefit? ............................................................................ 3
What is the Duration of an Eligible Individual’s EUC08 Benefit?............................................ 4
Tier I.................................................................................................................................... 4
Tier II................................................................................................................................... 4
Tier III ................................................................................................................................. 4
Tier IV ................................................................................................................................. 4
How Is High Unemployment Defined for Purposes of Tier III and Tiers IV EUC08
Benefits?................................................................................................................................. 4
How to Find What Tier Is Available in a State.................................................................... 5
When Do the Expanded EUC08 Benefits Begin and End? ....................................................... 5
All Tiers Terminate the Week Ending On or Before January 3, 2012, with
Grandfathering ................................................................................................................. 5
Tier I EUC08 Eligibility Requirements..................................................................................... 6
First Claimed Regular UC Benefits On or After May 7, 2006............................................ 6
Exhausted Regular UC Benefit ........................................................................................... 6
“20 Weeks” of Full-Time Insured Employment or Equivalent ........................................... 7
Tier II EUC08 Eligibility Requirements.................................................................................... 7
Exhausted Tier I EUC08 Benefit......................................................................................... 7
Tier III EUC08 Eligibility Requirements .................................................................................. 7
Exhausted Tier II EUC08 Benefit ....................................................................................... 7
At or After the Period of Tier II EUC08 Exhaustion, the State Must Currently
Have at Least 6% Unemployment Rate ........................................................................... 7
Tier IV EUC08 Eligibility Requirements .................................................................................. 8
Exhausted Tier I, Tier II, and Tier III EUC08 Benefits....................................................... 8
At or After the Period of Tier III EUC08 Exhaustion, the State Must Currently
Have at Least 8.5% Unemployment Rate ........................................................................ 8
Retroactive Payments for Periods of Unemployment from November 27, 2010, to
December 17, 2010................................................................................................................. 8
Lapses in EUC08 Authorization................................................................................................ 9
The Extended Benefit Program........................................................................................................ 9
EB Program is Permanently Authorized.................................................................................. 10
EB Program Financing ............................................................................................................ 10
EUC08 and EB Interactions .................................................................................................... 11
Which Benefit is Paid First?.............................................................................................. 11
Legislation in the 111th Congress................................................................................................... 11
Current Legislation ........................................................................................................................ 12
Figures
Figure A-1. Unemployment Insurance: Available Unemployment Benefits ................................. 14
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Temporary Extension of Unemployment Benefits: EUC08
Tables
Table 1. Summary of Emergency Unemployment Compensation (EUC08) Program:
Public Law, Benefits, Effective Dates, and Financing.................................................................. 2
Table 2. Summary of EUC08 Program Authorization Lapses ......................................................... 9
Appendixes
Appendix. Unemployment Insurance Benefits.............................................................................. 14
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Temporary Extension of Unemployment Benefits: EUC08
Emergency Unemployment Compensation
On June 30, 2008, the President signed the Supplemental Appropriations Act of 2008 (P.L. 110-
252) into law. Title IV of this act created a new temporary unemployment insurance program, the
Emergency Unemployment Compensation (EUC08) program.1 This is the eighth time Congress
has created a federal temporary program that has extended unemployment compensation during
an economic slowdown.2 State unemployment compensation (UC) agencies administer the
EUC08 benefit along with regular UC benefits. The authorization for this program ends on
January 3, 2012.
The EUC08 program has been amended by P.L. 110-449, P.L. 111-5, P.L. 111-92, P.L. 111-118,
P.L. 111-144, P.L. 111-157, P.L. 111-205, and P.L. 111-312. This temporary unemployment
insurance program provides up to 20 additional weeks of unemployment benefits to certain
workers who have exhausted their rights to regular UC benefits. A second tier of benefits provides
up to an additional 14 weeks of benefits (for a total of 34 weeks of EUC08 benefits for all
unemployed workers). A third tier is available in states with a total unemployment rate of at least
6% and provides up to an additional 13 weeks of EUC08 benefits (for a total of 47 weeks of
EUC08 benefits). A fourth tier is available in states with a total unemployment rate of at least
8.5% and provides up to an additional six weeks of EUC08 benefits (for a total of 53 weeks of
EUC08 benefits).
On December 17, 2010, the President signed P.L. 111-312, the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010, into law. P.L. 111-312 extends the
authorization for EUC08 through the week ending on or before January 3, 2012. P.L. 111-312
only extends the authorization of the EUC08 program. It does not change the structure of the
program, create additional benefit tiers, or augment any tier of existing EUC08 benefits.
Table 1 provides a summary of how the EUC08 program has changed since it was first
authorized. Each row provides the public law that amended the original EUC08 program, the
corresponding EUC08 benefits available under that law, and the effective dates authorized by that
law.
See Appendix for a diagram of the various unemployment benefits available to workers.
1 For information on previous legislative attempts to extend or expand the EUC08 program or for information on the
regular unemployment compensation program, see CRS Report RL33362, Unemployment Insurance: Programs and
Benefits, by Katelin P. Isaacs and Julie M. Whittaker.
2 The other programs became effective in 1958, 1961, 1972, 1975, 1982, 1991, and 2002. For details on these
programs, see CRS Report RL34340, Extending Unemployment Compensation Benefits During Recessions, by Julie M.
Whittaker and Katelin P. Isaacs.
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Temporary Extension of Unemployment Benefits: EUC08
Table 1. Summary of Emergency Unemployment Compensation (EUC08) Program:
Public Law, Benefits, Effective Dates, and Financing
Public Law
Benefit Tiers and Availability
Dates in Effect and Financing
Supplemental Appropriations Act of
13 weeks (al states)
7/6/2008-3/29/2009
2008, Title IV Emergency
(No benefits past 7/4/2009)
Unemployment Compensation (P.L.
110-252), signed June 30, 2008
Funded by federal EUCA funds
within UTF.
Unemployment Compensation
Tier I: 20 weeks (all states)
11/23/2008-3/29/2009
Extension Act of 2008 (P.L. 110-449),
(No benefits past 8/29/2009)
signed November 21, 2008.
Tier II: 13 additional weeks (33
weeks total) if state TUR is 6% or
Funded by federal EUCA funds
higher or IUR is 4% or higher
within UTF.
American Recovery and
Same as above.
2/22/2009-12/26/2009
Reinvestment Act of 2009 (P.L. 111-
(No benefits past 6/6/2010)
5), signed February 17, 2009.
[Note this included several other
interventions that augmented UC
Funded by general fund of the
benefits. The Federal Additional
Treasury. (Additionally, the FAC
Compensation (FAC) benefit of
program is funded by the general
$25/week for those receiving UC,
fund of the Treasury. The 100%
EUC08, EB, DUA, or TAA. At state
financing of the EB program is
option, EB benefit year could be
funded by the EUCA funds within
calculated based upon exhausting
the UTF.)
EUC08 benefits. 100% federal
financing of EB program. First $2400
of unemployment benefits were
excluded from income tax in 2009.]
Worker, Homeowner, and Business
Tier I: 20 weeks (all states)
11/8/2009-12/26/2009
Assistance Act of 2009 (P.L. 111-92),
(No benefits past 6/6/2010)
signed November 6, 2009.
Tier II: 14 additional weeks (34
weeks total, all states)
Funded by general fund of the
Treasury.
Tier III: 13 additional weeks if state
TUR is 6% or higher or IUR is 4% or
Extended FUTA surtax through June
higher (47 weeks total)
2011. The estimated revenues
col ected from FUTA surtax
Tier IV: 6 additional weeks if state
provision were $2.578 billion and
TUR is 8.5% or higher or IUR is 6%
offset the estimated direct spending
or higher (53 weeks total)
costs for unemployment insurance
provisions of $2.42 billion.
[Note this included a 1.5 year
extension of the Federal
Unemployment Tax Act (FUTA)
surtax.]
Department of Defense
Same as above.
12/27/2009-2/27/2010
Appropriations Act, 2010 (P.L. 111-
(No benefits past 7/31/2010)
118), signed December 19, 2009.
Funded by general fund of the
Treasury.
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Public Law
Benefit Tiers and Availability
Dates in Effect and Financing
Temporary Extension Act of 2010
Same as above.
2/28/2010-4/3/2010
(P.L. 111-144), signed March 2, 2010.
(No benefits past 9/4/2010)
Funded by general fund of the
Treasury.
The Continuing Extension Act of
Same as above.
4/3/2010-6/2/2010
2010 (P.L. 111-157), signed April 15,
(No benefits past 11/ 6/ 2010)
2010
Funded by general fund of the
Treasury.
The Unemployment Compensation
Same as above.
6/2/2010-11/30/2010
Extension Act of 2010. (P.L. 111-
(No benefits past 4/30/ 2011)
205), signed July 22, 2010.
[Note this did not include an
extension of the Federal Additional
Funded by general fund of the
Compensation (FAC) benefit of
Treasury.
$25/week for those receiving UC,
EUC08, EB, DUA, or TAA. The FAC
expired on June 2, 2010.]
The Tax Relief, Unemployment
Same as above.
11/30/2010-1/3/2012
Insurance Reauthorization, and Job
(No benefits past 6/9/2012)
Creation Act of 2010 (P.L. 111-
312
Funded by general fund of the
), signed December 17, 2010
Treasury.
Source: CRS.
How Does an Eligible Individual Receive the EUC08 Benefit?
An individual should contact his or her state’s unemployment agency to obtain specific
information on how to apply for and receive EUC08 benefits. The U.S. Department of Labor
maintains a website with links to each state’s agency at http://www.workforcesecurity.doleta.gov/
map.asp.
How Much is an Eligible Individual’s Weekly EUC08 Benefit?
The amount of the EUC08 benefit is the equivalent of the eligible individual’s weekly regular UC
benefit and includes any applicable dependents’ allowances. Some individuals receiving
unemployment benefits prior to December 11, 2010, may also have received a supplemental $25
weekly benefit (see section on “Who Was Eligible for the $25 FAC Benefit?” below).
Who Was Eligible for the $25 FAC Benefit?
P.L. 111-5 created the temporary Federal Additional Compensation (FAC), a $25 weekly benefit
supplement for individuals receiving EUC08 benefits and benefits from other unemployment
compensation programs: UC, the Extended Benefit (EB) program, Disaster Unemployment
Assistance (DUA), and Trade Adjustment Assistance (TAA). The authorization for the FAC $25
weekly benefit expired on June 2, 2010. It has not been extended by recent legislation (P.L. 111-
205; P.L. 111-312).
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Temporary Extension of Unemployment Benefits: EUC08
If an unemployed individual was receiving any type of unemployment benefit—UC, EUC08, EB,
DUA, or TAA—prior to May 29, 2010 (May 30, 2010, for New York), that individual continued
to receive the weekly FAC until he or she had exhausted all unemployment benefits from all
unemployment programs (i.e., UC, EUC08, EB, DUA, and TAA) or until December 11, 2010
(December 12, 2010, for New York), whichever date came first. Individuals who first began
receiving unemployment benefits after May 29, 2010 (May 30, 2010, for New York) did not
receive the FAC. All FAC payments have ceased.
What is the Duration of an Eligible Individual’s EUC08 Benefit?
Tier I
The maximum number of weeks for which an individual may be eligible under tier I EUC08
benefits is capped at 20 weeks. Some individuals may be eligible for fewer weeks of the tier I
EUC08 benefits if their regular UC benefit entitlement was less than 26 weeks.
Tier II
Once an individual has exhausted tier I benefits, a second tier is available that provides up to 14
additional weeks of EUC08 benefits.
Tier III
Once an individual has exhausted tier II benefits, a third tier of EUC08 benefits may be available
if the individual worked in a state with a three-month average total unemployment rate of 6% or
higher. The maximum number of weeks of tier III benefits is capped at 13 additional weeks (for a
total of 47 weeks of EUC08 benefits).
Tier IV
Once an individual has exhausted tier III benefits, a fourth tier of EUC08 benefits may be
available if the individual worked in a state with a three-month average unemployment rate of
8.5% or higher. The maximum number of weeks of tier IV benefits is capped at six weeks (for a
total of 53 weeks of EUC08 benefits).
How Is High Unemployment Defined for Purposes of Tier III and
Tiers IV EUC08 Benefits?
Tier III: The individual must have worked in a state where either the three-month seasonally
adjusted average state total unemployment rate (TUR)3 must be at least 6% or the insured
3 The TUR is the ratio of unemployed workers to all workers (employed and unemployed) in the labor market. The
TUR is essentially a weekly version of the unemployment rate published by the Bureau of Labor Statistics and based
on data from the BLS’ monthly Current Population Survey.
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Temporary Extension of Unemployment Benefits: EUC08
unemployment rate (IUR)4 must be at least 4% in order to qualify for the additional 13 weeks of
tier III EUC08 benefits.
Tier IV: The individual must have worked in a state where either the three-month seasonally
adjusted average state TUR is at least 8.5% or the IUR is at least 6% in order to qualify for the
additional six weeks of tier IV EUC08 benefits.
How to Find What Tier Is Available in a State
Each Monday the Department of Labor issues its “Emergency Unemployment Compensation
Trigger Notice” at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the
status column for tier III or tier IV within the notice is “on” for a particular state’s row, that state
is considered to be high unemployment for the purposes of that tier of EUC08 benefits.
When Do the Expanded EUC08 Benefits Begin and End?
States were required to enter into an agreement with the U.S. Department of Labor (DOL) to
provide the original EUC08 benefit to unemployed individuals in the state under the original
EUC08. Once the agreement was signed, the EUC08 benefit began the following week (July 6,
2008).
Following the passage of P.L. 110-449, additional weeks of EUC08 benefits became available
starting on November 23, 2008. That is, for weeks of unemployment that occur on or after
November 23, 2008, the 20 weeks for tier I and 13 additional weeks for tier II EUC08 benefits
began to be paid.
The passage of P.L. 111-92 led to the expanded EUC08 benefits of tiers II, III, and IV on
November 8, 2009. That is, for weeks of unemployment that occur on or after November 8, 2009,
the 14 weeks (one additional week from previous law) of tier II, the 13 weeks of tier III, and the 6
weeks for tier IV EUC08 benefits began to be paid. The additional weeks of benefits created by
P.L. 111-92 began to be disbursed the week of November 15, 2009. Delays in payments of
approximately three weeks were experienced as states reprogrammed their benefit distribution
systems.
All Tiers Terminate the Week Ending On or Before January 3, 2012, with
Grandfathering
All tiers of EUC08 benefits are temporary and expire in the week ending on or before January 3,
2012. There are no new entrants into any tier of the EUC08 program after December 31, 2011.5
Therefore, to be eligible for an EUC08 tier 1 benefit, an individual must exhaust his or her
regular UC benefits before or during the week ending December 24, 2011,6 in order to enter the
first tier of EUC08 benefits during the week ending December 31, 2011.
4 The IUR is the ratio of UC claimants to individuals in UC-covered jobs.
5 January 1, 2012, in New York state.
6 December 25, 2011, for New York state.
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Temporary Extension of Unemployment Benefits: EUC08
Those unemployed individuals who had qualified for a tier I, II, III, or IV EUC08 benefit by
December 31, 2011, may be “grandfathered” for their remaining weeks of eligibility for only that
specific tier, and would continue to receive payments for the number of weeks they were deemed
eligible within that tier. If an individual is eligible to continue to receive the tier I benefit after
December 31, 2011, that individual would not be entitled to tier II benefits once those tier I
benefits were exhausted. Similarly, if an individual is eligible to continue to receive the tier II
benefit after December 31, 2011, that individual would not be entitled to tier III benefits once
those tier II benefits were exhausted. Likewise, if an individual is eligible to continue to receive
the tier III benefit after December 31, 2011, that individual would not be entitled to tier IV
benefits once those tier III benefits were exhausted. No EUC08 benefits—regardless of tier—are
payable for any week after June 9, 2012.
Tier I EUC08 Eligibility Requirements
First Claimed Regular UC Benefits On or After May 7, 2006
Applicants must have been eligible for regular UC benefits and have exhausted their rights to
regular UC with respect to a benefit year that expired during or after the week of May 6, 2007.7
For most states, this would apply to individuals who had filed UC claims with an effective date of
May 7, 2006, or later. For the state of New York this would apply to original claims filed with an
effective date of May 1, 2006, or later.8
Exhausted Regular UC Benefit
The right to regular UC benefits must be exhausted to be eligible for EUC08 benefits. Although
federal laws and regulations provide broad guidelines on regular UC benefit coverage and
eligibility determination, the specifics of regular UC benefits are determined by each state. This
results in 53 different programs.9 In particular, states determine UC benefit eligibility, amount,
and duration through state laws and program regulations.
Generally, regular UC eligibility is based on attaining qualified wages and employment in
covered work over a 12-month period (called a base period). Conditional on earnings amounts
and number of quarters worked in the base period, an individual may qualify for as little as one
week of UC benefits in some states and as many as 26 weeks in other states. Individuals with
higher earnings and multiple quarters of work history will generally receive higher UC benefits
for a longer period of time.10
7 Arkansas has a unique approach to calculating a benefit year. In Arkansas, the benefit year begins the first day of the
quarter in which an individual files a valid UC claim. Thus, it is unlikely that many individuals in Arkansas who filed
UC claims before July 2006 would be eligible to receive EUC08 benefits.
8 Note the effective date is not necessarily the actual date when an individual filed for UC. A claim filed on May 10,
2006, may have had an earlier effective date if a state allows retroactive claims.
9 The 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands provide UC benefits to their workers.
10 Individuals in two states (MA and MT) may have regular UC durations that exceed 26 weeks. EB law requires that
the total potential duration of UC and EB combined not exceed 39 weeks (46 weeks in the case of the high
unemployment TUR trigger). Thus, the total potential entitlement—from all unemployment programs, including UC,
EUC08, and EB—in these states is not any greater than in other states.
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“20 Weeks” of Full-Time Insured Employment or Equivalent
In addition to all state requirements for regular UC eligibility, the EUC08 program requires
claimants to have at least 20 weeks of full-time insured employment or the equivalent in insured
wages in their base period.
States use one, two, or three different methods for determining an “equivalent” to 20 weeks of
full-time insured employment. These methods are described in both law (Section 202(a)(5) of the
Extended Unemployment Compensation Act of 1970) and regulation (20 CFR 615.4(b)). In
practice, states that apply any of these three requirements for receipt of regular UC benefits and
do not allow for exceptions to those requirements do not need to establish that workers meet the
20 weeks of full-time insured employment requirement for the purposes of EUC. The three
methods are as follows:
• earnings in the base period equal to at least 1.5 times the high-quarter wages; or
• earnings in the base period of at least 40 times the most recent weekly benefit
amount, and if this alternative is adopted, it shall use the weekly benefit amount
(including dependents’ allowances) payable for a week of total unemployment
(before any reduction because of earnings, pensions or other requirements) that
applied to the most recent week of regular benefits; or
• earnings in the base period equal to at least 20 weeks of full-time insured
employment, and if this alternative is adopted, the term “full-time” shall have the
meaning provided by the state law.
The base period may be the regular base period or, if applicable in the state, the period may be the
alternative base period or the extended base period if that determined the regular UC benefit.
Tier II EUC08 Eligibility Requirements
Exhausted Tier I EUC08 Benefit
The right to tier I EUC08 benefits must be exhausted to be eligible for the tier II EUC08 benefits.
Tier III EUC08 Eligibility Requirements
Exhausted Tier II EUC08 Benefit
The right to tier II EUC08 benefits must be exhausted to be eligible for the tier III EUC08
benefits. States have the ability to waive this requirement and pay tier III before tier II if doing so
would aid in prompt payment of EUC08 benefits.
At or After the Period of Tier II EUC08 Exhaustion, the State Must Currently
Have at Least 6% Unemployment Rate
The individual must have worked in a state with unemployment currently of at least 6% or an
IUR of at least 4%. If the state’s unemployment rate meets one of these conditions, a (still)
unemployed tier II benefit exhaustee would be eligible for tier III benefits at that time.
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Temporary Extension of Unemployment Benefits: EUC08
Each Monday the Department of Labor issues its “Emergency Unemployment Compensation
Trigger Notice” at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the
status column for tier III within the notice is “on” for a particular state’s row, that state is
considered to be high unemployment for the purposes of EUC08 tier III benefits.
No Retroactive Payments If State Triggers Back on to Tier III
No retroactive EUC08 payments exist for the period during which the individual had exhausted
tier II benefits but the state did not meet the high unemployment criteria. However, once a state
reaches the 6.0% level (and it has been at least 13 weeks since a state triggered off tier III), a still
unemployed tier II exhaustee would be able to receive tier III benefits.
Tier IV EUC08 Eligibility Requirements
Exhausted Tier I, Tier II, and Tier III EUC08 Benefits
The right to tier I, tier II, and tier III EUC08 benefits must be exhausted to be eligible for the tier
IV EUC08 benefits.
At or After the Period of Tier III EUC08 Exhaustion, the State Must Currently
Have at Least 8.5% Unemployment Rate
The individual must have worked in a state with unemployment currently of at least 8.5% or an
IUR of at least 5%. If the state’s unemployment rate meets one of these conditions, a (still)
unemployed tier III benefit exhaustee would be eligible for tier IV benefits at that time.
Each Monday, the Department of Labor issues its “Emergency Unemployment Compensation
Trigger Notice” at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the
status column for tier IV benefits within the notice is “on” for a particular state’s row, that state is
considered to be high unemployment for the purposes of EUC08.
No Retroactive Payments If State Triggers Back on to Tier IV
No retroactive EUC08 payments exist for the period during which the individual had exhausted
tier IV benefits but the state did not meet the tier IV high unemployment criteria. However, once a
state reaches the 8.5% level (and it has been at least 13 weeks since the state triggered off of tier
IV), a still unemployed tier III exhaustee would be able to receive benefits.
Retroactive Payments for Periods of Unemployment from
November 27, 2010, to December 17, 2010
P.L. 111-312 contains language that retroactively, continuously authorizes the EUC08 program.
Individuals who did not receive EUC08 for the November 27, 2010, to December 17, 2010,
period—on account of the temporary lack of authorization—will retroactively be eligible for
benefits for that period. The DOL has updated its trigger notices to reflect the retroactive
continuous authorization of the EUC08 program.
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Lapses in EUC08 Authorization
Over the history of the temporary EUC08 program, there have been four lapses in program
authorization: February 27, 2010, to March 2, 2010; April 3, 2010, to April 15, 2010; June 2,
2010, to July 22, 2010; and November 30, 2010, to December 17, 2010.
Each of these lapses was addressed either in law, via retroactive effective dates of program
extension legislation for longer lapses, or through the administration of the program, in the case
of the shortest lapse (February 27, 2010-March 2, 2010). The longest of these authorization lapses
was 49 days (or 7 weeks), occurring between June 2, 2010, and July 22, 2010, and ending when
P.L. 111-205 was signed. The passage of P.L. 111-312 addresses the most recent lapse (November
30, 2010-December 17, 2010) and retroactively restores EUC08 program authorization.
See Table 2 below for additional details on these authorization lapses.
Table 2. Summary of EUC08 Program Authorization Lapses
EUC08 Authorization
EUC08 Authorization
Number of Days
Legislation that
Lapse Beginning Date
Lapse Ending Date
Lapse Lasted
Ended Lapse
2/27/2010
3/2/2010
2
Temporary Extension Act
of 2010 (P.L. 111-144)
4/3/2010 4/15/2010
11
The
Continuing
Extension
Act of 2010 (P.L. 111-157)
6/2/2010 7/22/2010
49
The
Unemployment
Compensation Extension
Act of 2010. (P.L. 111-205)
11/30/2010
12/17/2010
16
The Tax Relief,
Unemployment Insurance
Reauthorization, and Job
Creation Act of 2010 (P.L.
111-312)
Source: CRS
The Extended Benefit Program
The EUC08 program should not be confused with the similarly named Extended Benefit (EB)
program.11 The EUC08 program is temporary and tiers I and II apply to all states (tier III and IV
availability depends on unemployment conditions within each state). The EB program is
permanently authorized and applies only to certain states on the basis of state unemployment
conditions as specified in law.
Each Monday the Department of Labor issues its “Extended Benefit Trigger Notice” at
http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp. If the “available weeks”
column within the notice has either 13 or 20 for a particular state’s row, that extended benefit
11 For a detailed description of the EB program, see CRS Report RL33362, Unemployment Insurance: Programs and
Benefits, by Katelin P. Isaacs and Julie M. Whittaker.
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program is active in that state with a potential of up to 13 or 20 weeks of EB for its unemployed
workers.
When economic conditions in a state no longer meet the criteria for extended benefits, the EB
program becomes inactive. There is no “grandfathering” of the EB benefit. When a state EB
program becomes inactive, payment of all EB benefits stops immediately.
EB Program is Permanently Authorized
The EB program is permanently authorized by the Federal-State Extended Unemployment
Compensation Act of 1970 (EUCA), P.L. 91-373 (26 U.S.C. 3304, note). The EB program
provides for additional weeks of unemployment benefits, up to a maximum of 13 weeks during
periods of high unemployment and, at the option of each state, up to a maximum of 20 weeks in
certain states with extremely high unemployment.
EB Program Financing
Under EUCA, EB benefits are funded half (50%) by the federal government through an account
for that purpose in the Unemployment Trust Fund (UTF). States fund half (50%) through their
state accounts in the UTF.12
The American Economic Recovery and Investment Act of 2009, P.L. 111-5, provided for 100%
federal financing of the EB program though December 31, 2009 (through the Extended
Unemployment Compensation Account within the Unemployment Trust Fund). P.L. 111-118
extended the 100% financing for an additional two months, until February 28, 2010. P.L. 111-144,
P.L. 111-157, and P.L. 111-205 further extended 100% federal financing of the EB program
through April 5, 2010, June 2, 2010, and December 1, 2010, respectively. Most recently, P.L. 111-
312 extends the 100% federal financing of EB through January 4, 2012. For individuals who
began to receive extended benefits on or before January 4, 2012, 100% federal financing would
continue for the length of receipt of the extended benefits, even if these benefits continue to be
paid after January 4, 2012.13 For extended benefit payments that start after January 4, 2012,
benefits would again be funded 50% by the states and 50% by the federal government.
12 States that do not require a one-week UC waiting period, or have an exception for any reason to the waiting period,
pay 100% of the first week of EB. Twenty-five states, including Rhode Island and North Carolina, do not require a one-
week UC waiting period in all cases. P.L. 110-449 temporarily suspended the waiting week requirement for federal
funding, and the American Economic Recovery and Investment Act of 2009 would continue this suspension until the
week ending before November 6, 2010.
13 For more information on temporary changes to the EB program under the American Economic Recovery and
Investment Act of 2009, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits.
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EUC08 and EB Interactions
Which Benefit is Paid First?
The EUC08 program allows states to determine which benefit is paid first. Thus, states may
choose to pay EUC08 before EB or vice versa. Alaska is the only state that has opted to pay EB
before EUC08 benefits.
An exception to the payment order may be made in a state that has elected to pay EUC08 first, if
an individual claimed EB for at least one week of unemployment after the exhaustion of EUC08
prior to the enactment P.L. 111-92. The amendments contained within P.L. 111-92 give states the
option of paying EB to an otherwise eligible individual prior to the payment of any EUC08
benefits that are payable on account of the Worker Assistance Act amendments to the EUC08
program (or vice versa in the case of Alaska).
Legislation in the 111th Congress
P.L. 111-5
The American Economic Recovery and Reinvestment Act (P.L. 111-5) extended the EUC08
program through December 26, 2009. The stimulus bill also provided for supplementary
payments of $25 per week to all forms of unemployment compensation, including the EUC08
benefit, through the end of 2009. Until February 16, 2009, the EUC08 program was financed with
funds within the UTF. However, with the passage of P.L. 111-5, the EUC08 benefit is now 100%
federally funded from general funds within the U.S. Treasury. The $25 weekly supplemental
benefit is also funded from the general funds of the U.S. Treasury.
P.L. 111-92
On September 22, 2009, the House of Representatives passed H.R. 3548. The bill would have
created a third tier of EUC08 benefits. Workers in states with a total unemployment rate of at
least 8.5% would have been eligible for up to an additional 13 weeks of EUC08 benefits, for a
total of 46 weeks of EUC08 benefits. The bill also contained provisions that would have
authorized an additional year of the 0.2% FUTA surtax (approximately $14 per worker, paid by
employers); would have required employers to report the first day of earnings of a new worker to
the National Directory of New Hires; and would have amended the Internal Revenue Code to
allow states to reduce the federal income tax overpayment for individuals who had been found to
owe a covered UC debt regardless of whether the state recovering the funds and the state in which
the individual lived were one and the same.
The Senate amended H.R. 3548. The amendment created an additional (new “second”) tier of up
to 14 weeks of benefits, without regard to state unemployment rates. The amendment also created
a new third tier of up to an additional 13 weeks of EUC08 benefits in states with unemployment
rates of at least 6%, and a new fourth tier of up to an additional six weeks of EUC08 benefits in
states with unemployment rates of at least 8.5%. Other measures included in the proposal
concerned eligibility for food stamp payments (benefit eligibility and determination would not
consider the $25 additional federal unemployment benefit established in ARRA legislation);
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railroad workers (who have their own unemployment insurance system) would receive
approximately the same increase in potential benefits; and the authorization of the 0.2% FUTA
surtax is extended through 2010 and the first six months of calendar year 2011.
The House voted on and passed the Senate version of H.R. 3548 on November 5, 2009. The
President signed the bill into law, as P.L. 111-92, on November 6, 2009.
P.L. 111-118
On December 21, 2009, the President signed P.L. 111-118, the Department of Defense
Appropriations Act of 2010, into law. P.L. 111-118 extended the availability of EUC08 benefits
for two months, through the week ending on or before February 28, 2010. It also extended the
$25 Federal Additional Compensation (FAC) benefit and 100% federal EB financing through
February 28, 2010.
P.L. 111-144
On March 2, 2010, the President signed P.L. 111-144, the Temporary Extension Act of 2010. P.L.
111-144 extends three temporary provisions through the week ending on or before April 5, 2010:
EUC08, the $25 FAC supplemental weekly benefit, and 100% federal EB financing.
P.L. 111-157
On April 15, 2010, the President signed P.L. 111-157, the Continuing Extension Act of 2010, into
law. P.L. 111-157 extends the availability of EUC08, 100% federal financing of EB, and the $25
FAC benefit until the week ending on or before June 2, 2010.
P.L. 111-205
On July 22, 2010, the President signed P.L. 111-205, the Unemployment Compensation Extension
Act of 2010, into law. P.L. 111-205 extended the availability of EUC08 and 100% federal
financing of EB until the week ending on or before November 30, 2010. It did not extend the $25
FAC benefit, which expired June 2, 2010.
P.L. 111-312
On December, 17, 2010, the President signed P.L. 111-312, the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010. P.L. 111-312 extends the authorization
of the EUC08 program until January 3, 2012, and the 100% federal financing of the EB program
until the week ending on or before January 4, 2012.
Current Legislation
On February 9, 2011, Representative Barbara Lee introduced H.R. 589, the Emergency
Unemployment Compensation Expansion Act. This bill is similar to a bill introduced by
Representative Lee in the 111th Congress (H.R. 6556) in that it would add up to 14 additional
weeks of unemployment benefits to the existing tier I of the EUC08 program, amending tier I of
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EUC08 to provide up to 34 weeks of unemployment benefits to eligible individuals. These new
benefits would not be retroactive (i.e., no lump sum payments) but, if this bill were passed, an
individual could begin to receive the additional up to 14 weeks if he or she continued to meet the
eligibility criteria for EUC08. In addition, H.R. 589 would extend the date of the last payable
benefit for grandfathered individuals receiving EUC08 benefits from June 9, 2012, to September
22, 2012.14
Representative Kevin Brady introduced H.R. 235, the Cut Unsustainable and Top-Heavy
Spending Act of 2011 (or CUTS Act) on February 7, 2011. Among other provisions, this bill
would prohibit the use of federal funds—from the EB and EUC08 programs—to pay
unemployment benefits to anyone with resources of at least $1 million in the preceding year. An
individual’s resources would be determined in the same way as the resource test for the Medicare
Part D drug benefit subsidy. This provision would be effective for any weeks of unemployment
beginning on or after January 1, 2011.
On February 8, 2011, Senator Coburn introduced S. 310, the Ending Unemployment Payments to
Jobless Millionaires Act of 2011. Like H.R. 235, S. 310 would prohibit any EUC08 or EB benefit
payments to individuals with resources in the preceding year of at least $1 million, as determined
through the resource test for the Medicare Part D drug benefit subsidy. Unlike, H.R. 235 the
prohibition provision in S. 310 would be effective on or after enactment of this legislation.
Representative Lankford introduced H.R. 569 on February 9, 2011. H.R. 569 is a House
companion bill to S. 310 and contains the same legislative language.
14 This legislative proposal was also offered by Rep. Barbara Lee as H.Amdt. 67 to H.R. 1, the Full-Year Continuing
Appropriations Act of 2011, on February 17, 2011; however, a point of order was sustained against it.
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Appendix. Unemployment Insurance Benefits
Figure A-1. Unemployment Insurance: Available Unemployment Benefits
Source: CRS.
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