State legislatures would be authorized to make annual appropriations from their subsidiary accounts for program administration. The 40 percent cap on each state account would be retained. A federal administrative account would be established and funded by no more than 1 percent of the annual collections from the state accounts. A small state administrative account would be established and funded by transfer of no more than 2 percent from the state accounts. From these last two accounts, also capped at 40 percent of the previous year's appropriation, Congress would make appropriations for the federal role and small state assistance.
Surpluses go back to the state accounts.
The federal role would ensure conformity of state laws with federal laws, establish performance standards, monitor state performance, and audit for state compliance and use of FUTA funds. The loan account would become a revolving account capped at its current ceiling. Surpluses flow to state administrative accounts, and the states may borrow administrative funds from the loan account. The EUCA balance would be transferred to the state benefit trust funds. Finally, the proposal amends FUTA to require states to provide public employment services with universal access where individuals can file claims for benefits and receive reemployment services.