No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2312 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2312
To modernize unemployment compensation benefits.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 16, 2025
Mr. Wyden (for himself, Mr. Bennet, Mr. Reed, Ms. Warren, Mr. Sanders,
Mr. Fetterman, and Mr. Booker) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To modernize unemployment compensation benefits.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Unemployment
Insurance Modernization and Recession Readiness Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MODERNIZATION OF EXTENDED BENEFITS
Sec. 101. Full Federal funding of extended unemployment compensation.
Sec. 102. Improving the extended benefit triggers.
Sec. 103. Increase in the number of weeks of extended benefits during
high unemployment periods.
Sec. 104. Improved calculation of amounts in an individual's extended
benefit account.
Sec. 105. Transition for amounts remaining in extended benefit accounts
when a State is no longer in an extended
benefit period.
Sec. 106. Coordination of extended benefits with regular compensation.
Sec. 107. Portability of extended benefits.
Sec. 108. Additional extended benefit program improvements.
Sec. 109. Exemption of extended benefits from sequestration.
Sec. 110. Effective date.
TITLE II--MODERNIZATION OF REGULAR UNEMPLOYMENT
Sec. 201. Floor on the number of weeks.
Sec. 202. Floor on the minimum replacement of wages.
Sec. 203. Floor on the maximum benefit.
Sec. 204. Part-time work.
Sec. 205. Base period.
Sec. 206. Expansion of good cause separations.
Sec. 207. Unemployment compensation for victims of a qualifying act of
violence or harassment.
Sec. 208. Elimination of waiting weeks.
Sec. 209. Temporary work assignment.
Sec. 210. Self-employment assistance program.
Sec. 211. Short-time compensation program.
Sec. 212. Minimum level of prior employment.
Sec. 213. Employee status.
Sec. 214. Eligibility of certain student-workers for unemployment
compensation.
Sec. 215. Dependents' allowance.
Sec. 216. Labor disputes.
Sec. 217. Educational employees.
Sec. 218. Emergency enhanced unemployment compensation.
TITLE III--JOBSEEKER ALLOWANCE
Sec. 301. Jobseeker allowance.
TITLE I--MODERNIZATION OF EXTENDED BENEFITS
SEC. 101. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 204 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (a)--
(A) by striking ``(1) There shall be paid'' and all
that follows through the period at the end of paragraph
(2) and inserting the following: ``(1) There shall be
paid to each State an amount equal to 100 percent of
the extended compensation (including allowances for
dependents) paid to individuals under State law.
``(2) No payment shall be made to any State under this subsection
with respect to benefits paid if the State--
``(A) assesses payments due in lieu of contributions from
the employer for such benefits; or
``(B) charges the employer for purposes of employer
experience rating for such benefits.''; and
(B) in paragraph (3), by striking ``section
3306(c)(7) of the Internal Revenue'' and all that
follows through ``reduced by an amount'' and inserting
``paragraph (7) or (8) of section 3306(c) of the
Internal Revenue Code of 1986 applies shall be reduced
by an amount equal to 50 percent of the amount'';
(2) by striking subsections (b) and (c); and
(3) by redesignating subsections (d) and (e) as subsections
(b) and (c), respectively.
(b) Conforming Amendment.--Section 202(a)(6) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended by striking ``or shareable regular compensation''.
SEC. 102. IMPROVING THE EXTENDED BENEFIT TRIGGERS.
(a) TUR Triggers.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended
by striking subsection (f) and inserting the following new subsections:
``(f) State TUR Trigger.--
``(1) In general.--For purposes of this section:
``(A) On indicator.--There is a State `on'
indicator for a week if the average rate of total
unemployment in such State (seasonally adjusted) for
the period consisting of the most recent 3 months for
which data for all States are published before the
close of such week equals or exceeds 5.5 percent.
``(B) Off indicator.--There is a State `off'
indicator for a week if the requirement of subparagraph
(A) is not satisfied.
``(2) Application.--Notwithstanding the provision of any
State law, any week for which there would otherwise be a State
`on' indicator shall continue to be such a week and shall not
be determined to be a week for which there is a State `off'
indicator.
``(3) Determinations of the rate of total unemployment.--
For purposes of this subsection, determinations of the rate of
total unemployment in any State for any period (and of any
seasonal adjustment) shall be made by the Secretary.
``(g) National TUR Trigger.--
``(1) In general.--For purposes of this section:
``(A) On indicator.--There is a State `on'
indicator for a week if the average rate of total
unemployment for all States (seasonally adjusted) for
the period consisting of the most recent 3 months for
which data for all States are published before the
close of such week equals or exceeds 5.5 percent.
``(B) Off indicator.--There is a State `off'
indicator for a week if the requirement of subparagraph
(A) is not satisfied.
``(2) Application.--Notwithstanding the provision of any
State law, any week for which there would otherwise be a State
`on' indicator shall continue to be such a week and shall not
be determined to be a week for which there is a State `off'
indicator.
``(3) Determinations of the rate of total unemployment.--
For purposes of this subsection, determinations of the rate of
total unemployment for all States for any period (and of any
seasonal adjustment) shall be made by the Secretary.''.
(b) Elevated National Unemployment Trigger.--
(1) In general.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), as
amended by subsection (a), is amended by adding at the end the
following new subsection:
``(h) Elevated National Unemployment Trigger.--
``(1) In general.--For purposes of this section:
``(A) On indicator.--There is a State `on'
indicator for a week if the average rate of total
unemployment for all States (seasonally adjusted) for
the period consisting of the most recent 3 months for
which data for all States are published before the
close of such week is at least 0.5 percentage points
higher than the lowest average rate of total
unemployment for all States (seasonally adjusted) for
any continuous 3-month period in the preceding 12
months.
``(B) Off indicator.--There is a State `off'
indicator for a week if the average rate of total
unemployment for all States (seasonally adjusted) for
the period consisting of the most recent 3 months for
which data for all States is published before the close
of such week--
``(i) has decreased for not less than 2
consecutive months;
``(ii) is less than 5.5 percent; and
``(iii) is less than 1.5 percentage points
above the average rate of total unemployment
for all States (seasonally adjusted) for the
period consisting of the most recent 3 months
for which data for all States is published
before the close of the first week for which
there is an `on' indicator under subparagraph
(A).
``(2) Application.--Notwithstanding the provision of any
State law, any week for which there would otherwise be a State
`on' indicator shall continue to be such a week and shall not
be determined to be a week for which there is a State `off'
indicator.
``(3) Determinations of the rate of total unemployment.--
For purposes of this subsection, determinations of the rate of
total unemployment for all States for any period (and of any
seasonal adjustment) shall be made by the Secretary.
``(4) Inclusion of determination in monthly employment
situation reports.--Notwithstanding any other provision of law,
the Secretary, acting through the Commissioner of the Bureau of
Labor Statistics, shall include in each monthly employment
situation report published by the Commissioner a specific
determination of whether or not there is an `on' indicator
under paragraph (1)(A) in the United States.''.
(2) Coordination between elevated national unemployment
trigger and other triggers.--Section 203(b) of the Federal-
State Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended by adding at the end the following new
paragraph:
``(3)(A) In the case of a State for which there is an `on'
indicator for a week under subsection (h) and an `on' indicator for
such week under subsection (f) or (g), section 202(b)(1) shall be
applied by substituting--
``(i) `100 per centum' for `50 per centum' in subparagraph
(A); and
``(ii) `twenty-six' for `thirteen' in subparagraph (B).
``(B) The increase in amounts in an account by reason of
subparagraph (A) shall be in addition to any increases in amounts in an
account by reason of paragraph (3) of section 202(b).''.
SEC. 103. INCREASE IN THE NUMBER OF WEEKS OF EXTENDED BENEFITS DURING
HIGH UNEMPLOYMENT PERIODS.
Section 202(b) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``The State law'' and inserting ``Subject to
paragraph (3) and section 203(b)(3), the State law'';
(B) in subparagraph (A), by inserting ``or'' at the
end;
(C) in subparagraph (B), by striking ``, or'' at
the end and inserting a period; and
(D) by striking subparagraph (C); and
(2) by striking paragraph (3) and inserting the following
new paragraph:
``(3) Increase in amount in account during high
unemployment periods.--
``(A) Tiers.--Effective with respect to weeks
beginning in a high unemployment period, paragraph (1)
shall be applied as follows:
``(i) Second tier.--In the case of weeks in
a tier 2 high unemployment period described in
subparagraph (B)(i), by substituting--
``(I) `100 per centum' for `50 per
centum' in subparagraph (A); and
``(II) `twenty-six' for `thirteen'
in subparagraph (B).
``(ii) Third tier.--In the case of weeks in
a tier 3 high unemployment period described in
subparagraph (B)(ii), by substituting--
``(I) `150 per centum' for `50 per
centum' in subparagraph (A); and
``(II) `thirty-nine' for `thirteen'
in subparagraph (B).
``(iii) Fourth tier.--In the case of weeks
in a tier 4 high unemployment period described
in subparagraph (B)(iii), by substituting--
``(I) `200 per centum' for `50 per
centum' in subparagraph (A); and
``(II) `fifty-two' for `thirteen'
in subparagraph (B).
``(B) High unemployment periods.--
``(i) Second tier.--For purposes of
subparagraph (A)(i), a second tier high
unemployment period described in this clause is
any period during which an extended benefit
period would be in effect if subsection
(f)(1)(A) or (g)(1)(A) of section 203 were
applied by substituting `6.5 percent but is
less than 7.5 percent' for `5.5 percent'.
``(ii) Third tier.--For purposes of
subparagraph (A)(ii), a third tier high
unemployment period described in this clause is
any period during which an extended benefit
period would be in effect if subsection
(f)(1)(A) or (g)(1)(A) of section 203 were
applied by substituting `7.5 percent but is
less than 8.5 percent' for `5.5 percent'.
``(iii) Fourth tier.--For purposes of
subparagraph (A)(iii), a fourth tier high
unemployment period described in this clause is
any period during which an extended benefit
period would be in effect if subsection
(f)(1)(A) or (g)(1)(A) of section 203 were
applied by substituting `8.5 percent' for `5.5
percent'.
``(C) Individuals remain eligible for augmented
amount even if tier threshold no longer met.--If an
individual's account is augmented under subparagraph
(B) because a State triggers on to a tier described in
clause (i), (ii), or (iii) of subparagraph (B), the
augmented amount shall remain in such account for the
duration of the individual's benefit year even if the
requirements for such tier are no longer met.
``(D) Clarification.--The triggers under
subsections (d) and (h) of section 203 shall not apply
for purposes of determining high unemployment periods
under this paragraph.''.
SEC. 104. IMPROVED CALCULATION OF AMOUNTS IN AN INDIVIDUAL'S EXTENDED
BENEFIT ACCOUNT.
(a) In General.--Section 202(b)(1) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended,
in the matter preceding subparagraph (A), by striking ``the least'' and
inserting ``the greatest''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to extended compensation accounts established on or after the
earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendment; or
(2) January 1, 2027.
SEC. 105. TRANSITION FOR AMOUNTS REMAINING IN EXTENDED BENEFIT ACCOUNTS
WHEN A STATE IS NO LONGER IN AN EXTENDED BENEFIT PERIOD.
Section 203(b) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note), as amended by section
102(b)(2), is amended by adding at the end the following new paragraph:
``(4) In the case of an individual who has amounts remaining in an
account established under section 202(b) as of the date that extended
benefits would otherwise not be payable to the individual because there
is a State `off' indicator, extended compensation shall continue to be
payable to such individual from such amounts for any week--
``(A) that begins on or after such date and ends on or
before 6 months after such date; and
``(B) for which the individual meets the eligibility
requirements under this title.''.
SEC. 106. COORDINATION OF EXTENDED BENEFITS WITH REGULAR COMPENSATION.
Section 202 of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note) is amended by adding at the end the
following new subsection:
``(d) Coordination of Extended Compensation With Regular
Compensation.--
``(1) If--
``(A) an individual has been determined to be
entitled to extended compensation with respect to a
benefit year;
``(B) such benefit year has expired;
``(C) such individual has remaining entitlement to
extended compensation with respect to such benefit
year; and
``(D) such individual would qualify for a new
benefit year in which the weekly benefit amount of
regular compensation is at least $25 less than the
individual's weekly benefit amount in the benefit year
referred to in subparagraph (A);
then the State shall determine eligibility for compensation as
provided in paragraph (2).
``(2) For individuals described in paragraph (1), the State
shall determine whether the individual is to be paid extended
compensation or regular compensation for a week of unemployment
using one of the following methods:
``(A) The State shall, if permitted by State law,
establish a new benefit year, but defer the payment of
regular compensation with respect to that new benefit
year until exhaustion of all extended compensation
payable with respect to the benefit year referred to in
paragraph (1)(A).
``(B) The State shall, if permitted by State law,
defer the establishment of a new benefit year (which
uses all the wages and employment which would have been
used to establish a benefit year but for the
application of this paragraph) until exhaustion of all
extended compensation payable with respect to the
benefit year referred to in paragraph (1)(A).
``(C) The State shall pay, if permitted by State
law--
``(i) regular compensation equal to the
weekly benefit amount established under the new
benefit year; and
``(ii) extended compensation equal to the
difference between that weekly benefit amount
and the weekly benefit amount for the expired
benefit year.
``(D) The State shall determine rights to extended
compensation without regard to any rights to regular
compensation if the individual elects to not file a
claim for regular compensation under the new benefit
year.''.
SEC. 107. PORTABILITY OF EXTENDED BENEFITS.
Section 202(a) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by adding at
the end the following new paragraph:
``(8) The provisions under section 3304(a)(9)(A) of the Internal
Revenue Code of 1986 shall apply to benefits under this title in the
same manner as such provisions apply to regular compensation under
State law.''.
SEC. 108. ADDITIONAL EXTENDED BENEFIT PROGRAM IMPROVEMENTS.
(a) State Law Requirements.--Section 202(a) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) paragraph (3)--
(A) in subparagraph (D)(iii), by striking
``subparagraphs (C) and (E)'' and inserting
``subparagraph (C)''; and
(B) by striking subparagraph (E) and redesignating
subparagraph (F) as subparagraph (E);
(2) by striking paragraphs (4), (5), and (7) and
redesignating paragraph (6) as paragraph (4); and
(3) in paragraph (4), as so redesignated, by striking
``paragraphs (3), (4), and (5)'' and inserting ``paragraph
(3)''.
(b) Elimination of Mandatory 13-Week Off Period.--Section 203(b)(1)
of the Federal-State Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note) is amended by striking ``any State'' and all that
follows before the period at the end and inserting ``any State, no
extended benefit period shall last for a period of less than thirteen
consecutive weeks''.
(c) Elimination of Look Back Under the Insured Unemployment Rate
Trigger.--Section 203(d) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
(1) in paragraph (1), by striking ``twelve weeks--'' and
all that follows through ``5 per centum'' and inserting
``twelve weeks equal or exceeded 5 percent'';
(2) in paragraph (2), by striking ``either subparagraph (A)
or subparagraph (B) of''; and
(3) by striking the second and third sentences.
(d) Determination of Insured Unemployment Rate.--Section
203(e)(1)(A) of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note) is amended by inserting ``, extended
compensation, unemployment compensation for Federal civilian employees
under subchapter I of chapter 85 of title 5, United States Code, or
unemployment compensation for ex-servicemembers under subchapter II of
such chapter 85'' after ``regular compensation''.
SEC. 109. EXEMPTION OF EXTENDED BENEFITS FROM SEQUESTRATION.
(a) In General.--Section 255(g)(1)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is
amended by inserting after ``Payments to Social Security Trust Funds
(28-0404-0-1-651).'' the following:
``Payments to a State under the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).''.
(b) Applicability.--The amendment made by this section shall apply
to any sequestration order issued under the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) on or
after the date of enactment of this Act.
SEC. 110. EFFECTIVE DATE.
The amendments made by this title (other than sections 104 and 109)
shall apply to weeks of unemployment beginning on or after January 1,
2027 (or earlier if established by State law (but in no case earlier
than 60 days after the date of enactment of this Act)).
TITLE II--MODERNIZATION OF REGULAR UNEMPLOYMENT
SEC. 201. FLOOR ON THE NUMBER OF WEEKS.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (18), by striking ``and'' at the end;
(2) by redesignating paragraph (19) as paragraph (20); and
(3) by inserting after paragraph (18) the following new
paragraph:
``(19) the minimum duration of benefits is at least 26
weeks and no variable duration formula that provides for
maximum weeks of benefits of fewer than 26 weeks is used, or,
in the case of a State that uses a maximum benefit entitlement,
an individual's maximum benefit entitlement may not be less
than 26 times the individual's weekly benefit amount; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 202. FLOOR ON THE MINIMUM REPLACEMENT OF WAGES.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (19), by striking ``and'' at the end;
(2) by redesignating paragraph (20) as paragraph (21); and
(3) by inserting after paragraph (19) the following new
paragraph:
``(20) an individual's weekly benefit amount is equal to
the lesser of--
``(A) the maximum weekly benefit amount under the
State law; or
``(B) an amount equal to the quotient of--
``(i) an amount equal to at least 75
percent of the total earnings in the quarter of
the individual's base period with the highest
earnings; divided by
``(ii) 13; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 203. FLOOR ON THE MAXIMUM BENEFIT.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (20), by striking ``and'' at the end;
(2) by redesignating paragraph (21) as paragraph (22); and
(3) by inserting after paragraph (20) the following new
paragraph:
``(21) the maximum weekly benefit amount may not be less
than \2/3\ of the State's average weekly wage (as determined by
the Secretary of Labor) as of October 1 of each calendar year
and applied for claims effective on or after January 1 of the
subsequent calendar year; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 204. PART-TIME WORK.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (21), by striking ``and'' at the end;
(2) by redesignating paragraph (22) as paragraph (25); and
(3) by inserting after paragraph (21) the following new
paragraphs:
``(22) an individual is not denied unemployment
compensation under any State law provisions relating to ability
to work, availability for work, active search for work, or
refusal to accept work, solely on the basis of the number of
hours of work such individual is seeking, provided that the
individual is seeking at least the lesser of--
``(A) 20 hours of work per week; or
``(B) a number of hours of work per week equal to
at least \1/2\ of the typical number of hours worked
per week in the individual's base period;
``(23) an unemployed individual may claim benefits for a
week of partial unemployment where the individual performs less
than full-time work while continuing to search for additional
part-time or full-time work in accordance with State law if
their earnings are less than the individual's weekly benefit
amount;
``(24) when determining the weekly benefit amount for an
individual claiming a benefit for a week of partial
unemployment, the State disregards, at a minimum, earnings
equal to \1/3\ of the individual's weekly benefit amount in
computing the individual's weekly benefit for partial
unemployment; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 205. BASE PERIOD.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) by redesignating paragraph (25) as paragraph (27); and
(3) by inserting after paragraph (24) the following new
paragraphs:
``(25) the State law--
``(A) uses a base period that consists of 4
completed calendar quarters preceding the effective
date of the claim and includes the most recently
completed calendar quarter before the start of the
benefit year for purposes of determining eligibility
for unemployment compensation; or
``(B) provides that, in the case of an individual
who would not otherwise be eligible for unemployment
compensation under the State law because of the use of
a base period that does not meet the requirements
described in subparagraph (A), eligibility is
determined using a base period that consists of 4
completed calendar quarters preceding the effective
date of the claim and includes the most recently
completed calendar quarter before the start of the
benefit year;
``(26) in the case of an individual who would not otherwise
be eligible for unemployment compensation under State law
because the individual took unpaid leave or reduced pay for
medical, parental, or caregiving purposes during the base
period, or because the individual was incapable of work due to
illness, injury, or disability during the base period,
eligibility shall be determined using a base period that
includes the State's standard or alternative base period and at
least 4 additional consecutive quarters immediately before the
base period or alternative base period; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to claims with an effective date beginning on or after the
earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 206. EXPANSION OF GOOD CAUSE SEPARATIONS.
(a) In General.--Section 3304 of the Internal Revenue Code of 1986,
as previously amended by this title, is amended--
(1) in subsection (a)--
(A) in paragraph (26), by striking ``and'' at the
end;
(B) by redesignating paragraph (27) as paragraph
(28); and
(C) by inserting after paragraph (26) the following
new paragraph:
``(27) an individual shall not be disqualified from
unemployment compensation for separating from employment if
that separation is for any compelling reason (as defined in
subsection (g)); and''; and
(2) by adding at the end the following new subsection:
``(g) Definition of Compelling Reason.--
``(1) In general.--For purposes of subsection (a)(27), the
Secretary of Labor shall establish a definition for the term
`compelling reason'.
``(2) Requirements.--In defining the term compelling
reason, the Secretary shall include the following reasons:
``(A) Illness or disability of a qualified family
member.--
``(i) In general.--The illness or
disability of a qualified family member of the
individual.
``(ii) Qualified family member.--For
purposes of clause (i), the term `qualified
family member' means, with respect to an
individual--
``(I) a spouse (including a
domestic partner in a civil union or
other registered domestic partnership
recognized by a State) and a spouse's
parent;
``(II) a child and a child's
spouse;
``(III) a parent and a parent's
spouse;
``(IV) a sibling and a sibling's
spouse;
``(V) a grandparent, a grandchild,
or a spouse of a grandparent or
grandchild; and
``(VI) any other individual who is
related by blood or affinity and whose
association with the individual is the
equivalent of a family relationship (as
determined under regulations issued by
the Secretary of the Labor).
``(B) Accompany the individual's spouse.--In order
to accompany such individual's spouse--
``(i) to a place which is outside of the
individual's commuting area; and
``(ii) due to a change in location of the
spouse's employment.
``(C) Relocation of workplace.--The relocation of
the workplace of the individual to a place which is
outside of the individual's commuting area.
``(D) Care for a child.--The need to care for a
child when child care has been lost and an alternative
arrangement cannot be reasonably secured.
``(E) Unusual risk.--The individual's job presents
any unusual risk to the health or safety of the
individual.
``(F) Employer's failure to conform to state and
federal laws.--The employee's reasonable belief that
the employer failed to conform to any State or Federal
law relating to wages, hours, working conditions,
collective bargaining, harassment, discrimination,
retaliation, or reasonable accommodations.
``(G) Other reasons.--Other reasons determined
appropriate by the State.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 207. UNEMPLOYMENT COMPENSATION FOR VICTIMS OF A QUALIFYING ACT OF
VIOLENCE OR HARASSMENT.
(a) In General.--Section 3304 of the Internal Revenue Code of 1986,
as previously amended by this title, is amended--
(1) in subsection (a)--
(A) in paragraph (27), by striking ``and'' at the
end;
(B) by redesignating paragraph (28) as paragraph
(29); and
(C) by inserting after paragraph (27) the following
new paragraph:
``(28) an individual shall not be denied compensation under
such State law solely on the basis of the individual having a
voluntary separation from work if such separation is
attributable to such individual being a victim of a qualifying
act of violence or harassment; and''; and
(2) by adding at the end the following new subsection:
``(h) Victims of a Qualifying Act of Violence or Harassment.--
``(1) Documentation.--For purposes of subsection (a)(28), a
voluntary separation of an individual shall be considered to be
attributable to such individual being a victim of a qualifying
act of violence or harassment if such individual submits such
evidence as the State deems sufficient.
``(2) Sufficient documentation.--For purposes of paragraph
(1), a State shall deem sufficient--
``(A) evidence of such qualifying act of violence
or harassment in the form of--
``(i) a sworn statement and a form of
identification;
``(ii) a police or court record;
``(iii) documentation from a professional
from whom such individual has sought
assistance, including those associated with
medical, legal, or religious professions or a
victim service provider; or
``(iv) any other documentation determined
appropriate by the Secretary of Labor or the
State; and
``(B) an attestation that such voluntary separation
is attributable to such qualifying act of violence or
harassment.
``(3) Definitions.--
``(A) In general.--Subject to subparagraph (B), in
this section:
``(i) Qualifying act of violence or
harassment.--The term `qualifying act of
violence or harassment' means an act, conduct,
or pattern of conduct that is or could
constitute any of the following:
``(I) Domestic violence.
``(II) Dating violence.
``(III) Sexual assault.
``(IV) Stalking.
``(V) Sexual harassment.
``(VI) Other harassment.
``(ii) Victim of a qualifying act of
violence or harassment.--The term `victim of a
qualifying act of violence or harassment'
includes--
``(I) an individual who has
experienced or is experiencing a
qualifying act of violence or
harassment; and
``(II) an individual whose family
or household member has experienced or
is experiencing a qualifying act of
violence or harassment.
``(iii) Violence against women act
definitions.--The terms `domestic violence',
`dating violence', `sexual assault',
`stalking', and `victim service provider' have
the meanings given such terms in section 40002
of the Violence Against Women Act of 1994,
except that if the corresponding paragraph for
any such term is amended after the date of
enactment of this subsection, such amendment
shall not apply for the purpose of this
subsection until the earlier of--
``(I) the date the State changes
its statutes, regulations, or policies
in order to comply with such amendment;
or
``(II) the date that is 2 years
after the date of enactment of such
amendment.
``(iv) Sexual harassment.--The term `sexual
harassment' means hostile, intimidating, or
oppressive behavior based on sex that creates
an offensive work environment.
``(v) Other harassment.--The term `other
harassment' has the meaning given the term
`harassment' (other than sexual harassment)
under State law, regulation, or policy.
``(B) States may apply broader definition.--A State
may adopt a broader definition of any term under clause
(i), (ii) (iii), (iv), or (v) of subparagraph (A).''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 208. ELIMINATION OF WAITING WEEKS.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (28), by striking ``and'' at the end;
(2) by redesignating paragraph (29) as paragraph (30); and
(3) by inserting after paragraph (28) the following new
paragraph:
``(29) compensation is immediately paid to an individual
for their first week of otherwise compensable unemployment
without a waiting week; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 209. TEMPORARY WORK ASSIGNMENT.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (29), by striking ``and'' at the end;
(2) by redesignating paragraph (30) as paragraph (31); and
(3) by inserting after paragraph (29) the following new
paragraph:
``(30) an individual's completion of a temporary employment
assignment is considered to be an involuntary layoff for the
purposes of determining eligibility for unemployment
compensation, regardless of whether or not the individual has
contacted the employer after a temporary assignment has ended;
and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 210. SELF-EMPLOYMENT ASSISTANCE PROGRAM.
(a) Requirement.--
(1) In general.--Section 3304(a) of the Internal Revenue
Code of 1986, as previously amended by this title, is amended--
(A) in paragraph (4)(F), by inserting ``, as
required under paragraph (31)'' after ``3306(t))'';
(B) in paragraph (30), by striking ``and'' at the
end;
(C) by redesignating paragraph (31) as paragraph
(32); and
(D) by inserting after paragraph (30) the following
new paragraph:
``(31) payment of allowances is made under a self-
employment assistance program (as defined in section 3306(t))
under the State law; and''.
(2) Conforming amendment.--Section 303(a)(5) of the Social
Security Act (42 U.S.C. 503(a)(5)), is amended, in the last
proviso, by inserting ``, as required under section 3304(a)(31)
of such Code'' after ``1986)''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 211. SHORT-TIME COMPENSATION PROGRAM.
(a) Required Program.--
(1) In general.--Section 3304(a) of the Internal Revenue
Code of 1986, as previously amended by this title, is amended--
(A) in paragraph (4)(E), by inserting ``, as
required under paragraph (32)'' after ``3306(v))'';
(B) in paragraph (31), by striking ``and'' at the
end;
(C) by redesignating paragraph (32) as paragraph
(33); and
(D) by inserting after paragraph (31) the following
new paragraph:
``(32) payment of short-time compensation is made under a
short-time compensation program (as defined in section 3306(v))
under the State law; and''.
(2) Conforming amendment.--Section 303(a)(5) of the Social
Security Act (42 U.S.C. 503(a)(5)), is amended, in the fifth
proviso, by inserting ``, as required under section 3304(a)(32)
of such Code'' after ``1986)''.
(b) Revisions to Definition of a Short-Time Compensation Program.--
(1) Flexibility.--
(A) In general.--Section 3306(v)(3) of the Internal
Revenue Code of 1986 is amended by striking ``60
percent'' and inserting ``80 percent''.
(B) Effective date.--The amendment made by
subparagraph (A) shall take effect on the date of
enactment of this Act.
(2) Permitting employers to file claim on behalf of
employees.--Section 3306(v) of the Internal Revenue Code of
1986 is amended--
(A) by redesignating paragraphs (8), (9), and (10)
as paragraphs (9), (10), and (11), respectively; and
(B) by inserting after paragraph (7) the following
new paragraph:
``(8) the State agency allows an employer to file weekly
claims under the program on behalf of employees;''.
(c) Effective Date.--The amendments made by this section (other
than subsection (b)(1)) shall apply to weeks of unemployment beginning
on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 212. MINIMUM LEVEL OF PRIOR EMPLOYMENT.
(a) Requirement.--
(1) In general.--Section 3304(a) of the Internal Revenue
Code of 1986, as previously amended by this title, is amended--
(A) in paragraph (32), by striking ``and'' at the
end;
(B) by redesignating paragraph (33) as paragraph
(34); and
(C) by inserting after paragraph (31) the following
new paragraph:
``(33) compensation is not denied to an otherwise eligible
individual if the individual earned at least $1,000 in covered
wages during the highest quarter of the base period and at
least $1,500 covered wages during the base period; and''.
(2) State may reduce minimum thresholds.--Nothing in the
paragraph (33) of section 3304(a) of the Internal Revenue Code
of 1986, as added by paragraph (1), shall preclude a State from
reducing the dollar thresholds described in such paragraph
(32).
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 213. EMPLOYEE STATUS.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this title, is amended--
(1) in paragraph (33), by striking ``and'' at the end;
(2) by redesignating paragraph (34) as paragraph (35); and
(3) by inserting after paragraph (33) the following new
paragraph:
``(34) an individual performing any service shall be
considered an employee and not an independent contractor for
the purpose of the State law, unless--
``(A) the individual is free from control and
direction in connection with the performance of the
service, both under the contract for the performance of
service and in fact;
``(B) the service is performed outside the usual
course of the business of the employer; and
``(C) the individual is customarily engaged in an
independently established trade, occupation,
profession, or business of the same nature as that
involved in the service performed; and''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 214. ELIGIBILITY OF CERTAIN STUDENT-WORKERS FOR UNEMPLOYMENT
COMPENSATION.
(a) In General.--Section 3306(c)(10) of the Internal Revenue Code
of 1986 is amended--
(1) by striking subparagraphs (B) and (C); and
(2) by redesignating subparagraph (D) as subparagraph (B).
(b) Effective Date.--The amendment made by this section shall apply
to service performed on or after January 1, 2027.
SEC. 215. DEPENDENTS' ALLOWANCE.
(a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is
amended--
(1) in section 3304(a), as previously amended by this Act--
(A) in paragraph (34), by striking ``and'' at the
end;
(B) by redesignating paragraph (35) as paragraph
(36); and
(C) by inserting after paragraph (34) the following
new paragraph:
``(35) payment of dependents' allowances shall be paid
pursuant to section 3304A; and''; and
(2) by inserting after section 3304, the following new
section:
``SEC. 3304A. DEPENDENTS' ALLOWANCE.
``(a) In General.--Subject to the succeeding provisions of this
section, for purposes of section 3304(a)(35), a State shall provide, in
the case of any individual who is entitled to receive unemployment
compensation and who has any dependents, a dependents' allowance in an
amount equal to the amount specified in subsection (b) per dependent
per week.
``(b) Amount Specified.--
``(1) In general.--The amount specified in this subsection
is an amount equal to--
``(A) for 2027, $25; and
``(B) for 2028 or a subsequent year, the dollar
amount specified in this subsection for the preceding
year increased by the percentage change in the Consumer
Price Index for All Urban Consumers for the 12-month
period ending with June of such preceding year.
``(2) Rounding.--If any amount determined under paragraph
(1)(B) is not a multiple of $1, such amount shall be rounded to
the nearest multiple of $1.
``(c) Dependent Defined.--In this section, the term `dependent'
shall have the meaning given that term under State law, except that
such term shall include--
``(1) any child in the care of the individual who is under
the age of 18, including a natural child, an adopted child, and
a stepchild;
``(2) any child, including stepchild, natural child, or
adopted child, who, prior to enrollment as full-time student,
was in the care of the individual seeking benefits, so long as
the child remain enrolled as a full-time student and is under
the age of 24;
``(3) any eligible foster child (as defined in section
152(f)(1)(C)) placed with the individual;
``(4) an immediate family member with a disability who is
in the care of the individual or their household, regardless of
whether or not the family member resides in the individual's
household;
``(5) a nonworking senior family member living in the
household of the individual;
``(6) a nonworking spouse who is not receiving unemployment
compensation; and
``(7) other individuals determined appropriate by the
Secretary of Labor.
``(d) Regulations.--Not later than 3 months after the date of
enactment of this section, the Secretary of Labor shall issue
regulations to carry out this section.''.
(b) Permissible Use of Funds.--
(1) Internal revenue code of 1986.--Section 3304(a)(4) of
the Internal Revenue Code of 1986 is amended--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G)(ii), by inserting ``and''
at the end; and
(C) by adding at the end the following:
``(H) amounts may be withdrawn for the payment of
dependents' allowances under section 3304A;''.
(2) Social security act.--Section 303(a)(5) of the Social
Security Act is amended by striking ``; and'' at the end and
inserting ``: Provided further, That amounts may be withdrawn
for the payment of dependents' allowances under section 3304A;
and''.
(c) Conforming Amendment.--The table of sections for chapter 23 of
the Internal Revenue Code of 1986 is amended inserting after the item
relating to section 3304 the following new item:
``Sec. 3304A. Dependents' allowance.''.
(d) Effective Date.--The amendments made by this section shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 216. LABOR DISPUTES.
(a) In General.--Section 3304(a) of the Internal Revenue Code of
1986, as previously amended by this Act, is amended--
(1) in paragraph (35), by striking ``and'' at the end;
(2) by redesignating paragraph (36) as paragraph (37); and
(3) by inserting after paragraph (35) the following new
paragraph:
``(36) compensation is not denied to an otherwise eligible
individual if the separation is due to a labor dispute if--
``(A) the individual has been locked out by their
employer;
``(B) the dispute is the result of the employer's
failure to conform to the provisions of a labor
contract;
``(C) the dispute is the result of the employer's
failure to conform to any State or Federal law relating
to wages, hours, working conditions, or collective
bargaining; or
``(D) the individual and others of the same grade
or class are not participating in the dispute,
financing it, or directly interested in it; and''.
(b) Effective Date.--The amendments made by this section shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 217. EDUCATIONAL EMPLOYEES.
(a) In General.--Section 3304(a)(6)(A)(i) of the Internal Revenue
Code of 1986 is amended--
(1) by striking ``applies, compensation shall'' and
inserting the following: ``applies--
``(I) compensation shall'';
(2) in subclause (I), as added by paragraph (1), by
inserting ``except that'' at the end; and
(3) by adding at the end the following new subclause:
``(II) if compensation is denied to any
individual for any week under subclause (I) and
such individual was not offered an opportunity
to perform such services for the educational
institution for the second of such academic
years or terms, such individual shall be
entitled to a retroactive payment of the
compensation for each week for which the
individual filed a timely claim for
compensation and for which compensation was
denied solely by reason of subclause (I),''.
(b) Effective Date.--The amendments made by this section shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
SEC. 218. EMERGENCY ENHANCED UNEMPLOYMENT COMPENSATION.
(a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is
amended--
(1) in section 3304(a), as previously amended by this Act--
(A) in paragraph (20), in the matter preceding
clause (i), by inserting ``, subject to paragraph (37)
and section 3304B,'' after ``benefit amount is'';
(B) in paragraph (36), by striking ``and'' at the
end;
(C) by redesignating paragraph (37) as paragraph
(38); and
(D) by inserting after paragraph (36) the following
new paragraph:
``(37) payment of emergency enhanced unemployment
compensation shall be paid pursuant to section 3304B; and'';
and
(2) by inserting after section 3304A, as added by section
215, the following new section:
``SEC. 3304B. EMERGENCY ENHANCED UNEMPLOYMENT COMPENSATION.
``(a) Compensation.--
``(1) In general.--Subject to the succeeding provisions of
this section, for purposes of section 3304(a)(37), during an
emergency period with respect to a State, section
3304(a)(20)(B)(i) shall be applied with respect to the State by
substituting `100 percent' for `at least 75 percent'. The
additional amount an individual receives pursuant to the
application of the preceding sentence shall be referred to as
`emergency enhanced unemployment compensation'.
``(2) Emergency period.--For purposes of paragraph (1), the
term `emergency period' means, with respect to a State, any
period during which--
``(A) a public health emergency has been declared
under section 319 of the Public Health Service Act with
respect to the State (including a nationwide
emergency); or
``(B) a major disaster or emergency has been
declared by the President under section 401 or 501,
respectively, of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170, 5191).
``(b) Payments to States.--
``(1) In general.--
``(A) Full reimbursement.--There shall be paid to
each State an amount equal to 100 percent of--
``(i) the total amount of emergency
enhanced unemployment compensation paid to
individuals by the State pursuant to this
section; and
``(ii) any additional administrative
expenses incurred by the State by reason of
making such payments (as determined by the
Secretary of Labor).
``(B) Terms of payments.--Sums payable to any State
under this section shall be payable, either in advance
or by way of reimbursement (as determined by the
Secretary of Labor), in such amounts as the Secretary
of Labor estimates the State will be entitled to
receive under this section for each calendar month,
reduced or increased, as the case may be, by any amount
by which the Secretary of Labor finds that the
Secretary's estimates for any prior calendar month were
greater or less than the amounts that should have been
paid to the State. Such estimates may be made on the
basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary of Labor and the
State agency of the State involved.
``(2) Certifications.--The Secretary of Labor shall from
time to time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State under this
section.
``(3) Deposit.--Sums payable to any State under this
section shall be deposited in the account of such State in the
Unemployment Trust Fund. Amounts deposited under preceding
sentence may only be used by the State for the payment of
emergency enhanced unemployment compensation under this
section.
``(4) Funding.--There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such sums
as may be necessary for purposes of this section.
``(c) Fraud and Overpayments.--
``(1) In general.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed, or
caused another to fail, to disclose a material fact, and as a
result of such false statement or representation or of such
nondisclosure such individual has received an amount of
emergency enhanced unemployment compensation to which such
individual was not entitled, such individual--
``(A) shall be ineligible for further emergency
enhanced unemployment compensation in accordance with
the provisions of the applicable State unemployment
compensation law relating to fraud in connection with a
claim for unemployment compensation; and
``(B) shall be subject to prosecution under section
1001 of title 18, United States Code.
``(2) Repayment.--In the case of individuals who have
received amounts of emergency enhanced unemployment
compensation to which they were not entitled, the State shall
require such individuals to repay the amounts of such emergency
enhanced unemployment compensation to the State agency, except
that the State agency shall waive such repayment if it
determines that--
``(A) the payment of such emergency enhanced
unemployment compensation was not based on fraud on the
part of any such individual; and
``(B) such repayment would be contrary to equity
and good conscience.
``(3) Recovery by state agency.--
``(A) In general.--The State agency may recover the
amount to be repaid, or any part thereof, by deductions
from any emergency enhanced unemployment compensation
payable to such individual or from any unemployment
compensation payable to such individual under any State
or Federal unemployment compensation law administered
by the State agency or under any other State or Federal
law administered by the State agency which provides for
the payment of any assistance or allowance with respect
to any week of unemployment, during the 3-year period
after the date such individual received the payment of
the emergency enhanced unemployment compensation to
which they were not entitled, in accordance with the
same procedures as apply to the recovery of
overpayments of regular unemployment benefits paid by
the State.
``(B) Opportunity for hearing.--No repayment shall
be required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
``(4) Review.--Any determination by a State agency under
this section shall be subject to review in the same manner and
to the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
``(5) Deposit in state unemployment fund.--Any amount
recovered by a State agency pursuant to this section shall be
deposited in the account of such State in the Unemployment
Trust Fund. Amounts deposited under preceding sentence may only
be used by the State for the payment of emergency enhanced
unemployment compensation under this section.
``(d) Payment To Be Disregarded for Purposes of All Federal and
Federally Assisted Programs.--A emergency enhanced unemployment
compensation payment shall not be regarded as income and shall not be
regarded as a resource for the month of receipt and the following 12
months, for purposes of determining the eligibility of the recipient
(or the recipient's spouse or family) for benefits or assistance, or
the amount or extent of benefits or assistance, under any Federal
program or under any State or local program financed in whole or in
part with Federal funds.
``(e) Regulations.--Not later than 3 months after the date of
enactment of this section, the Secretary of Labor shall issue
regulations to carry out this section.''.
(b) Conforming Amendment.--The table of sections for chapter 23 of
the Internal Revenue Code of 1986, as amended by section 215, is
amended inserting after the item relating to section 3304A the
following new item:
``Sec. 3304B. Emergency enhanced unemployment compensation.''.
(c) Effective Date.--The amendments made by this section shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
TITLE III--JOBSEEKER ALLOWANCE
SEC. 301. JOBSEEKER ALLOWANCE.
(a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is
amended--
(1) in section 3304(a), as previously amended by this Act--
(A) in paragraph (37), by striking ``and'' at the
end;
(B) by redesignating paragraph (38) as paragraph
(39); and
(C) by inserting after paragraph (37) the following
new paragraph:
``(38) payment of jobseeker allowances shall be paid
pursuant to section 3304C; and''; and
(2) by inserting after section 3304B, as added by section
218, the following new section:
``SEC. 3304C. JOBSEEKER ALLOWANCE.
``(a) Allowance.--
``(1) In general.--Subject to the succeeding provisions of
this section, for purposes of section 3304(a)(38), a State
shall provide for a weekly jobseeker allowance to any eligible
individual in accordance with standards established by the
Secretary of Labor.
``(2) Eligible individual.--In this section, the term
`eligible individual' means an individual who, for any week--
``(A) is unemployed or partially employed,
including self-employment;
``(B) is--
``(i) subject to paragraph (4), able to
work and available to work; and
``(ii) subject to paragraph (5), actively
seeking work;
``(C)(i) is at least 19 years of age (or at least
18 years of age in the case of an individual in foster
care under the responsibility of the State); or
``(ii) has earned a high school diploma or its
recognized equivalent; and
``(D) subject to paragraph (3), has an adjusted
gross income for the most recently completed tax year
that does not exceed the contribution and benefit base
as determined under section 230 of the Social Security
Act.
``(3) Exception to agi limitation.--The requirement under
paragraph (2)(D) shall not apply to an individual in a
household if, in the past 6 months--
``(A) another member of such household has been
separated from employment;
``(B) the individual has become separated or
divorced from their spouse; or
``(C) another member of the individual's household
has died.
``(4) Able to work and available to work.--
``(A) In general.--For purposes of paragraph
(2)(B)(i), subject to subparagraph (B), an individual
shall be considered to be able to work and available to
work as long as any limit on the individual's ability
to work or availability to work does not constitute a
withdrawal from the labor market. For purposes of the
preceding sentence, an individual shall not be
considered to have withdrawn from the labor market if
the individual is able to work and available to work
for 8 or more hours per week.
``(B) Exceptions.--A jobseeker allowance shall not
be denied to an otherwise eligible individual for any
week during which the individual is not able to work
and available for work because the individual--
``(i) is not available for work outside of
the locality of the individual's residence;
``(ii) is not available for work during
hours when they are the primary caregiver for a
child or dependent;
``(iii) is attending a training course with
the approval of the State agency in compliance
with any regulations issued by the Secretary of
Labor;
``(iv) is appearing for jury duty before
any court under a lawfully issued summons;
``(v) has been temporarily laid off and is
available to work only for the employer that
has temporarily laid off the individual; or
``(vi) is temporarily ill or injured.
``(5) Actively seeking work.--
``(A) In general.--For purposes of paragraph
(2)(B)(ii), subject to subparagraphs (B) and (C), an
individual shall be considered to be actively seeking
work if the individual--
``(i) engages in an active search for
employment that is appropriate in light of the
employment available in the labor market and
the individual's skills and capabilities,
including a number of employer contacts that is
consistent with the standards developed by the
Secretary of Labor and communicated to the
individual;
``(ii) maintains a record of such work
search, including employers contacted, method
of contact, and date contacted;
``(iii) when requested, provides such
record to the State agency; and
``(iv) is registered for employment
services in such a manner and to such extent as
prescribed by the Secretary of Labor.
``(B) Special rule for self-employment.--In the
case of an individual with a work history that includes
self-employment, the individual may be considered
actively seeking work if the individual--
``(i) is engaged in activities (which may
include State-approved entrepreneurial
training, business counseling, and technical
assistance) relating to resuming self-
employment that meets requirements established
by the Secretary of Labor;
``(ii) maintains a record of such
activities; and
``(iii) when requested, provides such
record to the State agency.
``(C) Exceptions.--A jobseeker allowance shall not
be denied to an otherwise eligible individual for any
week during which the individual is not actively
seeking work because the individual--
``(i) is attending a training course with
the approval of the State agency and the
Secretary of Labor;
``(ii) has been temporarily laid off with a
reasonable expectation the individual will
return to work soon;
``(iii) has a specified start date for new
employment;
``(iv) is appearing for jury duty before
any court under a lawfully issued summons; or
``(v) has a compelling reason (as defined
in section 3304(g)) or is a victim of a
qualifying act of violence or harassment (as
determined pursuant to section 3304(h)).
``(6) May not refuse offer of suitable work.--
``(A) In general.--Subject to subparagraphs (B) and
(C), an individual shall not be eligible for a
jobseeker allowance if the individual refuses an offer
of suitable work.
``(B) Nonsuitable work.--Work shall not be
considered suitable work for an individual if the
work--
``(i) poses an unreasonable risk to the
individual's health, safety, or morals;
``(ii) is not within the individual's
experience, training, or physical capability to
perform;
``(iii) is outside of the locality of the
individual's residence or is an unreasonable
distance from such residence; or
``(iv) meets other criteria established by
the Secretary of Labor.
``(C) Exceptions.--A jobseeker allowance shall not
be denied to an otherwise eligible individual for any
week for refusing an offer of suitable work if--
``(i) the position offered is vacant due
directly to a strike, lockout, or other labor
dispute;
``(ii) the wages, hours, or other
conditions of the work offered are
substantially less favorable to the individual
than those prevailing for similar work in the
locality;
``(iii) the position pays wages less than
the higher of--
``(I) the minimum wage provided by
section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C.
206(a)(1)), without regard to any
exemption;
``(II) any applicable State or
local minimum wage;
``(iv) if as a condition of being employed
the individual would be required to join a
company union or to resign from or refrain from
joining any bona fide labor organization;
``(v) the position was not offered to such
individual in writing; or
``(vi) the work meets other criteria
established by the Secretary.
``(b) Amount of Jobseeker Allowance.--
``(1) Amount.--
``(A) In general.--Subject to the succeeding
provisions of this subsection, the weekly amount of a
jobseeker allowance shall be an amount equal to--
``(i) for 2027, $250; and
``(ii) for 2028 or a subsequent year, the
dollar amount specified in this subparagraph
for the preceding year increased by the
percentage change in the Consumer Price Index
for All Urban Consumers for the 12-month period
ending with June of such preceding year.
``(B) Rounding.--If any amount determined under
subparagraph (A)(ii) is not a multiple of $1, such
amount shall be rounded to the nearest multiple of $1.
``(2) Reduced amount for individuals exclusively seeking
part-time work.--In the case of an eligible individual who is
available to work for less than 20 hours per week, the amount
of the jobseeker allowance for such individual for a week shall
be equal to 50 percent of the jobseeker allowance that would
otherwise apply under paragraph (1) for such week.
``(3) Reduced amount for individuals receiving unemployment
benefits.--In the case of an eligible individual who is
receiving unemployment compensation under any State of Federal
law for a week, the amount of the jobseeker allowance for such
individual for such week (determined after application of
paragraph (2)) shall be reduced by the amount of such regular
compensation or extended compensation for such week.
``(4) Increased amount for certain individuals in states
with elevated unemployment.--
``(A) In general.--For weeks beginning in an
elevated unemployment period, in the case of an
eligible individual that meets the prior income
threshold described in subparagraph (C), the amount of
the jobseeker allowance for such individual for the
week (determined after the application of paragraphs
(2) and (3)) shall be increased by an amount equal to--
``(i) the lesser of--
``(I) an amount equal to 1.4
percent of the amount of the
individual's earned income for the most
recently completed tax year (or the
immediately preceding tax year, if the
individual has not filed a return of
tax for the most recently completed tax
year); or
``(II) two-thirds of the State's
average weekly wage (as determined by
the Secretary of Labor); reduced by
``(ii) the amount of the jobseeker
allowance for such individual for such week
(determined after application of paragraphs (2)
and (3)); reduced by
``(iii) the amount of any reduction of the
jobseeker allowance for such individual for
such week pursuant to paragraph (3).
``(B) Elevated unemployment period.--For purposes
of subparagraph (A), the term `elevated unemployment
period' means any period during which an extended
benefit period would be in effect under subsection (f)
or (g) of section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note) if such subsection was applied by substituting
`7.5 percent' for `5.5 percent'.
``(C) Prior income threshold.--
``(i) In general.--For purposes of
subparagraph (A), an eligible individual meets
the prior income threshold described in this
subparagraph for a week if--
``(I) the individual's earned
income for the most recently completed
tax year was equal to or greater than
$10,000; and
``(II) the individual provides such
documentation of prior earned income as
the Secretary determines appropriate,
such as, but not limited to, tax
returns, Form W-2s, Form 1099s, and pay
stubs.
``(ii) Inflation adjustment.--
``(I) In general.--In the case of
any taxable year beginning in a
calendar year after 2027, the dollar
amount in clause (i)(I) shall be
increased by an amount equal to--
``(aa) such dollar amount;
multiplied by
``(bb) the cost-of-living
adjustment determined under
section 1(f)(3) for the
calendar year in which the
taxable year begins, determined
by substituting `calendar year
2026' for `calendar year 2016'
in subparagraph (A)(ii)
thereof.
``(II) Rounding.--Any increase
determined under subclause (I) shall be
rounded to the nearest multiple of $100
in the case of an adjustment of the
amount in subsection (a)(1).
``(D) Earned income.--In this paragraph, the term
`earned income' has the meaning given that term in
section 32(c)(2) of the Internal Revenue Code of 1986.
``(5) Earnings disregard.--
``(A) In general.--Subject to subparagraph (B), an
individual may earn up to 100 percent of the amount of
the individual's weekly jobseeker allowance without
losing eligibility for the weekly jobseeker allowance.
``(B) Reduction.--In the case of an individual who
is not receiving regular compensation or extended
compensation under any State of Federal law with
respect to a week, if the individual's earnings are
greater than \1/4\ of the amount of the individual's
weekly jobseeker allowance (determined after
application of paragraphs (2), (3), and (4)) for the
week, the amount of the individual's weekly jobseeker
allowance (as so determined) for the week shall be
reduced by 75 cents for each dollar earned above \1/4\
of the amount of the individual's weekly jobseeker
allowance (as so determined).
``(c) Jobseeker Allowance Account.--
``(1) In general.--A State shall establish, for each
eligible individual who files an application for a jobseeker
allowance, a jobseeker allowance account.
``(2) Maximum amount.--The maximum amount of a jobseeker
allowance payable to any individual for whom a jobseeker
allowance account is established under paragraph (1) may not
exceed the amount established in such account for such
individual.
``(3) Base-tier jobseeker allowance.--The amount
established in an account under paragraph (1) shall be equal to
26 times the amount of the weekly jobseeker allowance (as
determined under subsection (b), taking into account the
application of paragraph (4) of such subsection but not taking
into account the application of paragraphs (2), (3), and (5) of
such subsection). Such amount shall be referred to in this
section as the `base-tier jobseeker allowance'.
``(4) First-tier jobseeker allowance.--
``(A) In general.--If, at the time that the amount
added to an individual's account under paragraph (3) is
exhausted, or at any time during the individual's
benefit year, such individual's State is in an extended
benefit period under section 203(d) of the Federal-
State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note), such account shall be augmented
by an amount (in this section referred to as `first
tier jobseeker allowance') equal to 13 times the amount
of the weekly jobseeker allowance (as determined under
subsection (b), taking into account the application of
paragraph (4) of such subsection but not taking into
account the application of paragraphs (2), (3), and (5)
of such subsection).
``(B) Limitation.--The account of an individual may
be augmented not more than once under this paragraph.
``(5) Second-tier additional jobseeker allowance.--
``(A) In general.--If, at the time that the amount
added to an individual's account under paragraph (4) is
exhausted, or at any time during the individual's
benefit year, such individual's State is in a second-
tier high unemployment period under section
202(b)(3)(B)(i) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note), such account shall be augmented by an amount (in
this section referred to as `second-tier jobseeker
allowance') equal to 13 times the amount of the weekly
jobseeker allowance (as determined under subsection (b)
of this section, taking into account the application of
paragraph (4) of such subsection but not taking into
account the application of paragraphs (2), (3), and (5)
of such subsection).
``(B) Limitation.--The account of an individual may
be augmented not more than once under this paragraph.
``(6) Third-tier additional jobseeker allowance.--
``(A) In general.--If, at the time that the amount
added to an individual's account under paragraph (5) is
exhausted, or at any time during the individual's
benefit year, such individual's State is in a third-
tier high unemployment period under section
202(b)(3)(B)(ii) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note), such account shall be augmented by an amount (in
this section referred to as `third-tier jobseeker
allowance') equal to 13 times the amount of the weekly
jobseeker allowance (as determined under subsection (b)
of this section, taking into account the application of
paragraph (4) of such subsection but not taking into
account the application of paragraphs (2), (3), and (5)
of such subsection).
``(B) Limitation.--The account of an individual may
be augmented not more than once under this paragraph.
``(7) Fourth-tier additional jobseeker allowance.--
``(A) In general.--If, at the time that the amount
added to an individual's account under paragraph (6) is
exhausted, or at any time during the individual's
benefit year, such individual's State is in a fourth-
tier high unemployment period under section
202(b)(3)(B)(iii) of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note), such account shall be augmented by an amount (in
this section referred to as `fourth-tier jobseeker
allowance') equal to 13 times the amount of the weekly
jobseeker allowance (as determined under subsection (b)
of this section, taking into account the application of
paragraph (4) of such subsection but not taking into
account the application of paragraphs (2), (3), and (5)
of such subsection).
``(B) Limitation.--The account of an individual may
be augmented not more than once under this paragraph.
``(d) Payments to States.--
``(1) In general.--
``(A) Full reimbursement.--There shall be paid to
each State an amount equal to 100 percent of--
``(i) the total amount of jobseeker
allowances paid to individuals by the State
pursuant to this section; and
``(ii) any additional administrative
expenses incurred by the State by reason of
making such payments (as determined by the
Secretary of Labor).
``(B) Terms of payments.--Sums payable to any State
under this section shall be payable, either in advance
or by way of reimbursement (as determined by the
Secretary of Labor), in such amounts as the Secretary
of Labor estimates the State will be entitled to
receive under this section for each calendar month,
reduced or increased, as the case may be, by any amount
by which the Secretary of Labor finds that the
Secretary's estimates for any prior calendar month were
greater or less than the amounts that should have been
paid to the State. Such estimates may be made on the
basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary of Labor and the
State agency of the State involved.
``(2) Certifications.--The Secretary of Labor shall from
time to time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State under this
section.
``(3) Deposit.--Sums payable to any State under this
section shall be deposited in the account of such State in the
Unemployment Trust Fund. Amounts deposited under preceding
sentence may only be used by the State for the payment of
jobseeker allowances under this section.
``(4) Funding.--There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such sums
as may be necessary for purposes of this section.
``(e) Fraud and Overpayments.--
``(1) In general.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed, or
caused another to fail, to disclose a material fact, and as a
result of such false statement or representation or of such
nondisclosure such individual has received an amount of
jobseeker allowances to which such individual was not entitled,
such individual--
``(A) shall be ineligible for further jobseeker
allowances in accordance with the provisions of the
applicable State unemployment compensation law relating
to fraud in connection with a claim for unemployment
compensation; and
``(B) shall be subject to prosecution under section
1001 of title 18, United States Code.
``(2) Repayment.--In the case of individuals who have
received amounts of jobseeker allowances to which they were not
entitled, the State shall require such individuals to repay the
amounts of such jobseeker allowances to the State agency,
except that the State agency shall waive such repayment if it
determines that--
``(A) the payment of such jobseeker allowance was
not based on fraud on the part of any such individual;
and
``(B) such repayment would be contrary to equity
and good conscience.
``(3) Recovery by state agency.--
``(A) In general.--The State agency may recover the
amount to be repaid, or any part thereof, by deductions
from any jobseeker allowance payable to such individual
or from any unemployment compensation payable to such
individual under any State or Federal unemployment
compensation law administered by the State agency or
under any other State or Federal law administered by
the State agency which provides for the payment of any
assistance or allowance with respect to any week of
unemployment, during the 3-year period after the date
such individual received the payment of the jobseeker
allowance to which they were not entitled, in
accordance with the same procedures as apply to the
recovery of overpayments of regular unemployment
benefits paid by the State.
``(B) Opportunity for hearing.--No repayment shall
be required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
``(4) Review.--Any determination by a State agency under
this section shall be subject to review in the same manner and
to the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
``(5) Deposit in state unemployment fund.--Any amount
recovered by a State agency pursuant to this section shall be
deposited in the account of such State in the Unemployment
Trust Fund. Amounts deposited under preceding sentence may only
be used by the State for the payment of jobseeker allowances
under this section.
``(f) Payment To Be Disregarded for Purposes of All Federal and
Federally Assisted Programs.--A jobseeker allowance payment shall not
be regarded as income and shall not be regarded as a resource for the
month of receipt and the following 12 months, for purposes of
determining the eligibility of the recipient (or the recipient's spouse
or family) for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any State or
local program financed in whole or in part with Federal funds.
``(g) Regulations.--Not later than 3 months after the date of
enactment of this section, the Secretary of Labor shall issue
regulations to carry out this section.''.
(b) Permissible Use of Funds.--
(1) Internal revenue code of 1986.--Section 3304(a)(4) of
the Internal Revenue Code of 1986, as amended by section 215,
is amended--
(A) in subparagraph (G)(ii), by striking ``and'' at
the end;
(B) in subparagraph (H), by inserting ``and'' at
the end; and
(C) by adding at the end the following:
``(I) amounts may be withdrawn for the payment of
jobseeker allowances under section 3304C;''.
(2) Social security act.--Section 303(a)(5) of the Social
Security Act, as amended by section 215, is amended by striking
``; and'' at the end and inserting ``: Provided further, That
amounts may be withdrawn for the payment of jobseeker
allowances under section 3304C; and''.
(c) Conforming Amendment.--The table of sections for chapter 23 of
the Internal Revenue Code of 1986, as amended by section 215 and 218,
is amended inserting after the item relating to section 3304B the
following new item:
``Sec. 3304C. Jobseeker allowance.''.
(d) Effective Date.--The amendments made by this section shall
apply to weeks of unemployment beginning on or after the earlier of--
(1) the date the State changes its statutes, regulations,
or policies in order to comply with such amendments; or
(2) January 1, 2027.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line