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Congressional Research Service IF11723.1 (Unemployment Insurance Provisions in the Consolidated Appropriations Act, 2021 (Division N, Title II, Subtitle A, the Continued Assistance for Unemployed Workers Act of 2020))

Summary

Congressional Research Service product IF11723.1, dated January 11, 2021, on the Unemployment Insurance (UI) provisions in Division N, Title II, Subtitle A of the Consolidated Appropriations Act, 2021 (P.L. 116-260), titled the Continued Assistance for Unemployed Workers Act of 2020. It explains that the act reauthorizes and expands the enhanced UI benefits created under the CARES Act (P.L. 116-136), extends temporary UI provisions first authorized under the CARES Act and the Families First Coronavirus Response Act (P.L. 116-127), and adds program integrity requirements. Among the changes, it authorizes 11 additional weeks of Pandemic Emergency Unemployment Compensation (PEUC), for a total of 24 weeks, and extends PEUC through weeks of unemployment ending on or before March 14, 2021.

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                                                                                                         January 11, 2021
Unemployment Insurance Provisions in the Consolidated
Appropriations Act, 2021 (Division N, Title II, Subtitle A, the
Continued Assistance for Unemployed Workers Act of 2020)
The Unemployment Insurance (UI) provisions contained in       ending on or before March 14, 2021. After March 13, 2021
Division N, Title II, Subtitle A of the Consolidated          (March 14, 2021, in New York), no FPUC benefits are
Appropriations Act, 2021 (P.L. 116-260, enacted December      payable.
27, 2020) are titled the Continued Assistance for
Unemployed Workers Act of 2020 (Continued Assistance          Pandemic Emergency Unemployment
Act). The Continued Assistance Act (1) reauthorizes and       Compensation
expands the enhanced UI benefits created under the            PEUC provides additional weeks of federally financed UI
Coronavirus Aid, Relief, and Economic Security Act            benefits for individuals who exhaust state and federal UI
(CARES Act; P.L. 116-136, enacted March 27, 2020); (2)        benefits and are able, available, and actively seeking work,
extends the authorization for additional, temporary UI        subject to Coronavirus Disease 2019- (COVID-19-) related
provisions first authorized under the CARES Act and the       flexibilities. Originally created as a 13-week UI extension
Families First Coronavirus Response Act (FFCRA; P.L.          under the CARES Act and payable through weeks of
116-127, enacted March 18, 2020); and (3) creates             unemployment ending December 26, 2020 (December 27,
additional program integrity requirements for the             2020, in New York), the Continued Assistance Act
temporary, enhanced UI benefits.
                                                               authorizes 11 additional weeks of PEUC benefits (not
For more information on the UI provisions in FFCRA, the           retroactive; only payable with respect to weeks of
CARES Act, and the Continued Assistance Act, see CRS              unemployment beginning December 26, 2020;
Report R45478, Unemployment Insurance: Legislative                December 27, 2020, in New York)—for a total of 24
Issues in the 116th Congress.                                     weeks of PEUC;

Reauthorized and Expanded Federal UI                           extends the authorization for PEUC through weeks of
Benefits                                                          unemployment ending on or before March 14, 2021
The UI provisions in the Continued Assistance Act                 (March 13, 2021; March 14, 2021, in New York); and
reauthorize and expand three temporary UI benefits created
under the CARES Act: Federal Pandemic Unemployment             creates a phaseout period for PEUC so that, for
Compensation (FPUC); Pandemic Emergency                           individuals who are receiving PEUC at the end of the
Unemployment Compensation (PEUC); and Pandemic                    program (March 13, 2021; March 14, 2021, in New
Unemployment Assistance (PUA). The Continued                      York), have not exhausted available weeks of PEUC,
Assistance Act also provides $500,000 in funding to each          and remain otherwise eligible, PEUC benefits are
state for implementation of the changes to FPUC, PEUC,            payable until April 10, 2021 (April 11, 2021, in New
and PUA (states may request additional administrative             York).
funding, if needed). Additionally, the Continued Assistance
Act authorizes, at the option of states, a $100 per week      Pandemic Unemployment Assistance
benefit augmentation for unemployed workers with income       PUA is a temporary, federal UI program for individuals
from both wage-and-salary jobs and self-employment—           who are not otherwise eligible for UI benefits (e.g., self-
Mixed Earned Unemployment Compensation (MEUC).                employed, independent contractors, gig economy workers)
                                                              and are unemployed due to a specific COVID-19-related
Federal Pandemic Unemployment Compensation                    reason. Under the CARES Act, PUA provided up to 39
Originally authorized under the CARES Act at $600 per         weeks of benefits for weeks of unemployment ending
week, FPUC is a benefit augmentation for individuals          December 26, 2020 (December 27, 2020, in New York).
receiving weekly UI benefits that initially expired on July   The Continued Assistance Act
25, 2020 (July 26, 2020, in New York). After this
expiration, on August 8, 2020, President Trump issued a        authorizes 11 additional weeks of PUA benefits (not
presidential memorandum creating Lost Wages Assistance            retroactive; only payable with respect to weeks of
(LWA), a grant program that supplemented the weekly               unemployment beginning December 26, 2020;
benefits of certain eligible UI claimants, with up to $300        December 27, 2020, in New York), for a total of 50
weekly in federal funding. All states ended LWA payments          weeks of PUA;
by September 5, 2020. The Continued Assistance Act
reauthorizes FPUC at $300 per week for weeks of
unemployment beginning after December 26, 2020, and
                                             https://crsreports.congress.gov
        Unemployment Insurance Provisions in the Consolidated Appropriations Act, 2021 (Division N, Title II, Subtitle A, the
                                                             Continued Assistance for Unemployed Workers Act of 2020)

 extends the authorization for PUA through weeks of                including the Kennedy Center, that have opted not to
   unemployment ending on or before March 14, 2021                  pay UI taxes but instead reimburse states for regular UI
   (March 13, 2021; March 14, 2021, in New York);                   benefits paid to their former employees );

 creates a phaseout period for PUA so that, for                 100% federal financing of Short-Time Compensation
   individuals who are receiving PUA at the end of the              (STC; work sharing) in states with existing programs
   program (March 13, 2021; March 14, 2021, in New                  and 50% federal financing for states that set up STC
   York), have not exhausted available weeks of PUA, and            programs (up to the equivalent of 26 weeks of benefits
   remain otherwise eligible, PUA benefits are payable              for individuals); and
   until April 10, 2021 (April 11, 2021, in New York);
                                                                 waiver of federal requirements regarding merit staffing
 provides a new deadline for the backdating of PUA                 for state UI programs on an emergency, temporary basis
   claims (previously, PUA claims could be backdated to             in response to COVID-19 (limited to certain temporary
   February 2, 2020)—initial PUA applications for PUA               actions taken by states to quickly process UI claims,
   filed after December 27, 2020, may not be backdated              including rehiring former employees and temporary
   earlier than December 1, 2020; and                               hiring).

 enacts additional measures related to PUA, including (1)      The Continued Assistance Act also provides a temporary
   authority for states to waive recovery of PUA                option for states that have triggered off an EB period to opt
   overpayments in cases of nonfault and hardship               to disregard the mandatory 13-week off period for weeks
   (retroactive for any PUA overpayment); (2) codification      between November 1, 2020, and December 31, 2021. This
   of the PUA appeals process to be conducted by states;        authority can help states trigger back on to a 13-week or 2-
   and (3) requirements for additional documentation by         week EB period more quickly if state unemployment rates
   claimants and other PUA program integrity measures (as       increase (there would be no required 13-week off period).
   described in “UI Program Integrity Measures”).
                                                                UI Program Integrity Measures
Mixed Earner Unemployment Compensation                          The Continued Assistance Act includes several program
The Continued Assistance Act also authorizes a $100-a-          integrity measures, many of which are related to PUA
week MEUC payment in addition to the $300-a-week                eligibility. First, there are new documentation requirements
FPUC benefit in states that elect to participate. MEUC          for PUA claimants. Individuals filing a new PUA claim on
provides $100 weekly for individuals who received at least      or after January 31, 2021, must provide documentation of
$5,000 in self-employment income in the most recent tax         employment or self-employment within 21 days of
year (i.e., ending prior to the individual’s application for    application, or following the state deadline if later (with
state UI benefits) and who receive a UI benefit other than      exceptions for good cause). Individuals who received PUA
PUA. MEUC is payable only in states that opt to administer      on or after December 27, 2020, are required to provide this
the benefit for weeks of unemployment beginning on or           documentation within 90 days, or within the state deadline
after December 27, 2020, and ending on or before March          if later (with exceptions for good cause). Second, for PUA
14, 2021 (March 13, 2021; March 14, 2021, in New York).         claims filed on or after January 26, 2021, states must use
                                                                administrative procedures to verify the identity of PUA
Extensions of Additional UI Provisions                          applicants and provide timely payment, to the extent
The Continued Assistance Act also extends the temporary         reasonable and practicable. Third, the Continued Assistance
authority for additional UI provisions first authorized under   Act includes a new statutory requirement for weekly self-
FFCRA (P.L. 116-127) and the CARES Act (P.L. 116-136).          certification by claimants of COVID-19-related condition
The authorities for the following UI provisions were            for weeks on or after January 26, 2021.
generally extended through March 13, 2021 (March 14,
2021, in New York):                                             In addition, the Continued Assistance Act includes a new
                                                                return to work reporting requirement for states. Beginning
 waiver of interest payments and the accrual of interest       January 26, 2021, states must have a process for addressing
   on federal advances (loans) to states to pay regular UI      work refusals, must have a method for employer reporting
   benefits through temporary assistance for states with        of work refusals, and must provide notifications to
   advances;                                                    individuals related to work refusals.

 100% federal funding of Extended Benefits (EB);               Additional Resource
                                                                Department of Labor, Unemployment Insurance Program
 50% federal funding for the first week of UI benefits in      Letter 09-21, December 30, 2020, at https://wdr.doleta.gov/
   states with no waiting week (previously 100% federal         directives/corr_doc.cfm?DOCN=3831.
   funding under CARES Act—50% funding begins after
   the week ending December 26, 2020; December 27,              Katelin P. Isaacs, Specialist in Income Security
   2020, in New York);                                          Julie M. Whittaker, Specialist in Income Security
 50% federal funding of state UI benefits based on                                                                  IF11723
   service with reimbursing employers (i.e., state and local
   governments, Indian tribes, and nonprofit organizations,
                                               https://crsreports.congress.gov
        Unemployment Insurance Provisions in the Consolidated Appropriations Act, 2021 (Division N, Title II, Subtitle A, the
                                                             Continued Assistance for Unemployed Workers Act of 2020)




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                               https://crsreports.congress.gov | IF11723 · VERSION 1 · NEW


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