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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