Title: Federal Pandemic Unemployment Compensation Extension Act of 2020
Policy area: Labor and Employment

Summary:
Federal Pandemic Unemployment Compensation Extension Act of 2020  This bill modifies and extends certain pandemic unemployment programs and establishes requirements for state unemployment systems to process unemployment claims, transmit information, and address fraud.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4378 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4378

     To provide for a short-term extension of the Federal Pandemic 
       Unemployment Compensation program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2020

 Mr. Romney (for himself, Ms. Collins, and Ms. McSally) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
     To provide for a short-term extension of the Federal Pandemic 
       Unemployment Compensation program, and for other purposes.

    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 ``Federal Pandemic 
Unemployment Compensation Extension Act of 2020''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Improvements to Federal Pandemic Unemployment Compensation to 
                            better match lost wages.
Sec. 3. Supplemental emergency unemployment relief for governmental 
                            entities and nonprofit organizations.
Sec. 4. Conforming eligibility for Pandemic Unemployment Assistance to 
                            disaster unemployment assistance and 
                            accelerating appeal review.
Sec. 5. Improvements to State unemployment systems and strengthening 
                            program integrity.
Sec. 6. Emergency designation.

SEC. 2. IMPROVEMENTS TO FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION TO 
              BETTER MATCH LOST WAGES.

    (a) Extension.--Section 2104(e)(2) of the Relief for Workers 
Affected by Coronavirus Act (contained in subtitle A of title II of 
division A of the CARES Act (Public Law 116-136)) is amended by 
striking ``July 31, 2020'' and inserting ``November 1, 2020''.
    (b) Improvements to Accuracy of Payments.--
            (1) Federal pandemic unemployment compensation.--
                    (A) In general.--Section 2104(b) of the Relief for 
                Workers Affected by Coronavirus Act (contained in 
                subtitle A of title II of division A of the CARES Act 
                (Public Law 116-136)) is amended--
                            (i) in paragraph (1)(B), by striking ``of 
                        $600'' and inserting ``equal to the amount 
                        specified in paragraph (3)''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(3) Amount of federal pandemic unemployment 
        compensation.--
                    ``(A) In general.--The amount specified in this 
                paragraph is the following amount with respect to an 
                individual:
                            ``(i) For weeks of unemployment beginning 
                        after the date on which an agreement is entered 
                        into under this section and ending on or before 
                        July 31, 2020, $600.
                            ``(ii) For weeks of unemployment beginning 
                        after the last week under clause (i) and ending 
                        on or before August 31, 2020, an amount equal 
                        to one of the following, as determined by the 
                        State for all individuals:
                                    ``(I) $500.
                                    ``(II) An amount (not to exceed 
                                $500) equal to--
                                            ``(aa) 80 percent of the 
                                        individual's average weekly 
                                        wages; minus
                                            ``(bb) the individual's 
                                        base amount (determined prior 
                                        to any reductions or offsets).
                            ``(iii) For weeks of unemployment beginning 
                        after the last week under clause (ii) and 
                        ending on or before September 28, 2020, an 
                        amount equal to one of the following, as 
                        determined by the State for all individuals:
                                    ``(I) $400.
                                    ``(II) The amount determined under 
                                clause (ii)(II).
                            ``(iv) For weeks of unemployment beginning 
                        after the last week under clause (iii) and 
                        ending on or before November 2, 2020, an amount 
                        equal to one of the following, as determined by 
                        the State for all individuals:
                                    ``(I) $300.
                                    ``(II) The amount determined under 
                                clause (ii)(II).
                    ``(B) Base amount.--For purposes of this paragraph, 
                the term `base amount' means, with respect to an 
                individual, an amount equal to--
                            ``(i) for weeks of unemployment under the 
                        pandemic unemployment assistance program under 
                        section 2102, the amount determined under 
                        subsection (d)(1)(A)(i) or (d)(2) of such 
                        section 2102, as applicable; or
                            ``(ii) for all other weeks of unemployment, 
                        the amount determined under paragraph (1)(A) of 
                        this subsection.
                    ``(C) Average weekly wages.--
                            ``(i) In general.--Subject to clause (ii), 
                        for purposes of this paragraph, the term 
                        `average weekly wages' means, with respect to 
                        an individual, the following:
                                    ``(I) If the State computes the 
                                individual weekly unemployment 
                                compensation benefit amount based on an 
                                individual's average weekly wages in a 
                                base period, an amount equal to the 
                                individual's average weekly wages used 
                                in such computation.
                                    ``(II) If the State computes the 
                                individual weekly unemployment 
                                compensation benefit amount based on 
                                high quarter wages or a formula using 
                                wages across some but not all quarters 
                                in a base period, an amount equal to 
                                \1/13\ of such high quarter wages or 
                                average wages of the applicable 
                                quarters used in the computation for 
                                the individual.
                                    ``(III) If the State uses 
                                computations other than the 
                                computations under subclause (I) or 
                                (II) for the individual weekly 
                                unemployment compensation benefit 
                                amount, or for computations of the 
                                weekly benefit amount under the 
                                pandemic unemployment assistance 
                                program under section 2102, as 
                                described in subsection (d)(1)(A)(i) or 
                                (d)(2) of such section 2102, for which 
                                subclause (I) or (II) do not apply, an 
                                amount equal to \1/52\ of the sum of 
                                all base period wages.
                            ``(ii) Special rule.--If more than one of 
                        the methods of computation under subclauses 
                        (I), (II), and (III) of clause (i) are 
                        applicable to a State, then such term shall 
                        mean the amount determined under the applicable 
                        subclause of clause (i) that results in the 
                        highest amount of average weekly wages.''.
                    (B) Technical amendment regarding application to 
                short-time compensation programs and agreements.--
                Section 2104(i)(2) of the Relief for Workers Affected 
                by Coronavirus Act (contained in subtitle A of title II 
                of division A of the CARES Act (Public Law 116-136)) is 
                amended--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(E) short-time compensation under section 2108 or 
                2109.''.
            (2) Conforming amendments.--
                    (A) Pandemic unemployment assistance.--Section 
                2102(d) of the Relief for Workers Affected by 
                Coronavirus Act (contained in subtitle A of title II of 
                division A of the CARES Act (Public Law 116-136)) is 
                amended by inserting ``with respect to the individual'' 
                after ``section 2104'' in each of paragraphs (1)(A)(ii) 
                and (2).
                    (B) Pandemic emergency unemployment compensation.--
                Section 2107 of the Relief for Workers Affected by 
                Coronavirus Act (contained in subtitle A of title II of 
                division A of the CARES Act (Public Law 116-136)) is 
                amended--
                            (i) in subsection (a)(4)(A)(ii), by 
                        inserting ``with respect to the individual'' 
                        after ``section 2104''; and
                            (ii) in subsection (b)(2), by inserting 
                        ``with respect to the individual'' after 
                        ``section 2104''.
    (c) Consistent Treatment of Earnings and Unemployment 
Compensation.--Section 2104(h) of the Relief for Workers Affected by 
Coronavirus Act (contained in subtitle A of title II of division A of 
the CARES Act (Public Law 116-136)) is amended by adding at the end the 
following new sentence: ``The preceding sentence shall not apply to any 
Federal Pandemic Unemployment Compensation paid to an individual with 
respect to a week of unemployment ending on or after October 5, 
2020.''.
    (d) Requirement for Return to Work Notification and Reporting.--
Section 2104(b) of the Relief for Workers Affected by Coronavirus Act 
(contained in subtitle A of title II of division A of the CARES Act 
(Public Law 116-136)) is amended by adding at the end the following new 
paragraph:
            ``(3) Beginning 30 days after the date of enactment of this 
        paragraph, any agreement under this section shall require that 
        the State has in place a process to address refusal to return 
        to work or refusal of suitable work that includes the 
        following:
                    ``(A) Providing a plain-language notice to 
                individuals at the time of applying for benefits 
                regarding State law provisions relating to each of the 
                following:
                            ``(i) Return to work requirements.
                            ``(ii) Rights to refuse to return to work 
                        or to refuse suitable work.
                            ``(iii) How to contest the denial of a 
                        claim that has been denied due to a claim by an 
                        employer that the individual refused to return 
                        to work or refused suitable work.
                    ``(B) Providing a plain-language notice to 
                employers through any system used by employers or any 
                regular correspondence sent to employers regarding how 
                to notify the State if an individual refuses to return 
                to work.
                    ``(C) Other items determined appropriate by the 
                Secretary of Labor.''.
    (e) Effective Date.--The amendments made by this section (other 
than the amendment made by subsection (d)) shall take effect as if 
included in the enactment of the Relief for Workers Affected by 
Coronavirus Act (contained in subtitle A of title II of division A of 
the CARES Act (Public Law 116-136)).

SEC. 3. SUPPLEMENTAL EMERGENCY UNEMPLOYMENT RELIEF FOR GOVERNMENTAL 
              ENTITIES AND NONPROFIT ORGANIZATIONS.

    (a) In General.--Section 903(i)(1)(B) of the Social Security Act 
(42 U.S.C. 1103(i)(1)(B)) is amended by striking ``one-half'' and 
inserting ``75 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the enactment of the Relief for Workers 
Affected by Coronavirus Act (contained in subtitle A of title II of 
division A of the CARES Act (Public Law 116-136)).

SEC. 4. CONFORMING ELIGIBILITY FOR PANDEMIC UNEMPLOYMENT ASSISTANCE TO 
              DISASTER UNEMPLOYMENT ASSISTANCE AND ACCELERATING APPEAL 
              REVIEW.

    (a) Confirmation of Eligibility for Pandemic Unemployment 
Assistance.--Section 2102(a) of the Relief for Workers Affected by 
Coronavirus Act (contained in subtitle A of title II of division A of 
the CARES Act (Public Law 116-136)) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``and'' at 
                        the end; and
                            (ii) by inserting after clause (ii) the 
                        following:
                            ``(iii) provides documentation 
                        substantiating employment or self-employment or 
                        the planned commencement of employment or self-
                        employment not later than 21 days after the 
                        date on which the individual submits an 
                        application for assistance under this section 
                        or is directed by the State Agency to submit 
                        such documentation or has shown good cause 
                        under the applicable State law for failing to 
                        submit such documentation by the deadline, in 
                        accordance with section 625.6(e) of title 20, 
                        Code of Federal Regulations, or any successor 
                        thereto, except that such documentation shall 
                        not be required if the individual previously 
                        submitted such information to the State agency 
                        for the purpose of obtaining regular or other 
                        unemployment compensation; and''; and
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking ``or'' at 
                        the end;
                            (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) in accordance with section 
                        625.6(e)(2) of title 20, Code of Federal 
                        Regulations, or any successor thereto, an 
                        individual who does not provide documentation 
                        substantiating employment or self-employment or 
                        the planned commencement of employment or self-
                        employment under subparagraph (A)(iii).'';
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (3) the following:
            ``(4) Documentation substantiating employment or self-
        employment or the planned commencement of employment or self-
        employment.--The term `documentation substantiating employment 
        or self-employment or the planned commencement of employment or 
        self-employment' means documentation provided by the individual 
        substantiating employment or self-employment and wages earned 
        or paid for such employment or self-employment, or such 
        information related to the planned commencement of employment 
        or self-employment.''.
    (b) Applicability.--
            (1) In general.--Beginning not later than 30 days after the 
        date of enactment of this Act, each State shall require that 
        documentation substantiating employment or self-employment or 
        the planned commencement of employment or self-employment (as 
        defined in section 2102 of the Relief for Workers Affected by 
        Coronavirus Act (contained in subtitle A of title II of 
        division A of the CARES Act (Public Law 116-136))) be submitted 
        by any individual who applies for pandemic unemployment 
        assistance under section 2102 of the Relief for Workers 
        Affected by Coronavirus Act (contained in subtitle A of title 
        II of division A of the CARES Act (Public Law 116-136)) on or 
        after the date of enactment of this Act.
            (2) Prior applicants.--Any individual who applied for 
        pandemic unemployment assistance under section 2102 of the 
        Relief for Workers Affected by Coronavirus Act (contained in 
        subtitle A of title II of division A of the CARES Act (Public 
        Law 116-136)) before the date of enactment of this Act and 
        receives such assistance on or after the date of enactment of 
        this Act shall submit documentation substantiating employment 
        or self-employment or the planned commencement of employment or 
        self-employment (as defined in such section 2102) not later 
        than 90 days after the date of enactment of this Act or the 
        individual will be ineligible to receive pandemic unemployment 
        assistance under such section 2102.
    (c) Conforming Eligibility for Pandemic Unemployment Assistance to 
Disaster Unemployment Assistance.--Section 2102(a)(3)(A) of the Relief 
for Workers Affected by Coronavirus Act (contained in subtitle A of 
title II of division A of the CARES Act (Public Law 116-136)), as 
amended by subsection (a), is amended--
            (1) in clause (ii)--
                    (A) in subclause (I), in the matter preceding item 
                (aa), by inserting ``in the employment or service 
                described in clause (iv)'' after ``unavailable to 
                work''; and
                    (B) in subclause (II), by striking ``and'' at the 
                end; and
            (2) by inserting after clause (iii), as added by subsection 
        (a), the following:
                            ``(iv) provides self-certification that the 
                        principal source of income and livelihood of 
                        the individual are dependent upon the 
                        individual's employment for wages or the 
                        individual's performance of service in self-
                        employment; and''.
    (d) Pandemic Unemployment Assistance Appeals.--
            (1) Amendment.--Section 2102 of the Relief for Workers 
        Affected by Coronavirus Act (contained in subtitle A of title 
        II of division A of the CARES Act (Public Law 116-136)) is 
        amended by adding at the end the following:
    ``(i) Appeals by an Individual Filed in the 50 States, District of 
Columbia, Commonwealth of Puerto Rico, and Virgin Islands.--
            ``(1) In general.--An individual may appeal any 
        determination or redetermination regarding the rights to 
        pandemic unemployment assistance under this section made by the 
        State agency of a State, the District of Columbia, the 
        Commonwealth of Puerto Rico, or the Virgin Islands (referred to 
        in this subsection as `applicable States'). Such an appeal 
        shall be made in accordance with the applicable State law.
            ``(2) Requirements.--All levels of an appeal under 
        paragraph (1) shall be--
                    ``(A) carried out by the applicable State that made 
                the determination or redetermination; and
                    ``(B) conducted in the same manner and to the same 
                extent as the applicable State would conduct appeals of 
                determinations or redeterminations regarding rights to 
                compensation under State law.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect as if included in the enactment of the Relief 
        for Workers Affected by Coronavirus Act (contained in subtitle 
        A of title II of division A of the CARES Act (Public Law 116-
        136)).
            (3) Applicability.--The amendment made by paragraph (1) 
        shall not affect any decision regarding the rights to pandemic 
        unemployment assistance under section 2102 of the Relief for 
        Workers Affected by Coronavirus Act (contained in subtitle A of 
        title II of division A of the CARES Act (Public Law 116-136)) 
        issued on appeal or review before the date of enactment of this 
        Act.
    (e) Technical Correction.--Section 2102(h) of the Relief for 
Workers Affected by Coronavirus Act (contained in subtitle A of title 
II of division A of the CARES Act (Public Law 116-136)) is amended by 
striking ``section 625'' each place it appears and inserting ``part 
625''.

SEC. 5. IMPROVEMENTS TO STATE UNEMPLOYMENT SYSTEMS AND STRENGTHENING 
              PROGRAM INTEGRITY.

    (a) Unemployment Compensation Systems.--
            (1) In general.--Section 303(a) of the Social Security Act 
        (42 U.S.C. 503(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``provision for--'' and inserting ``provision 
                for each of the following:'';
                    (B) at the end of each of paragraphs (1) through 
                (10) and paragraph (11)(B), by striking ``; and'' and 
                inserting a period; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) The State system shall, in addition to meeting the 
        requirements under section 1137, meet the following 
        requirements:
                    ``(A) The system shall be capable of handling a 
                surge of claims that would represent a twentyfold 
                increase in claims from January 2020 levels, occurring 
                over a one-month period.
                    ``(B) The system shall be capable of--
                            ``(i) adjusting wage replacement levels for 
                        individuals receiving unemployment 
                        compensation;
                            ``(ii) adjusting weekly earnings 
                        disregards, including the ability to adjust 
                        such disregards in relation to an individual's 
                        earnings or weekly benefit amount; and
                            ``(iii) providing for wage replacement 
                        levels that vary based on the duration of 
                        benefit receipt.
                    ``(C) The system shall have in place an automated 
                process for receiving and processing claims for 
                disaster unemployment assistance under section 410(a) 
                of the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5177(a)), with flexibility to 
                adapt rules regarding individuals eligible for 
                assistance and the amount payable.
                    ``(D) In the case of a State that makes payments of 
                short-time compensation under a short-time compensation 
                program (as defined in section 3306(v) of the Internal 
                Revenue Code of 1986), the system shall have in place 
                an automated process of receiving and processing claims 
                for short-time compensation.
                    ``(E) The system shall have in place an automated 
                process for receiving and processing claims for--
                            ``(i) unemployment compensation for Federal 
                        civilian employees under subchapter I of 
                        chapter 85 of title 5, United States Code;
                            ``(ii) unemployment compensation for ex-
                        servicemembers under subchapter II of chapter 
                        85 of title 5, United States Code; and
                            ``(iii) trade readjustment allowances under 
                        sections 231 through 233 of the Trade Act of 
                        1974 (19 U.S.C. 2291-2293).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to weeks of unemployment beginning on or after the 
        earlier of--
                    (A) the date the State changes its statutes, 
                regulations, or policies in order to comply with such 
                amendment; or
                    (B) October 1, 2023.
    (b) Electronic Transmission of Unemployment Compensation 
Information.--Section 303 of the Social Security Act (42 U.S.C. 503) is 
amended by adding at the end the following new subsection:
    ``(n) Electronic Transmission of Unemployment Compensation 
Information.--
            ``(1) In general.--Not later than October 1, 2022, the 
        State agency charged with administration of the State law shall 
        use a system developed (in consultation with stakeholders) and 
        designated by the Secretary of Labor for automated electronic 
        transmission of requests for information relating to 
        unemployment compensation and the provision of such information 
        between such agency and employers or their agents.
            ``(2) Use of appropriated funds.--The Secretary of Labor 
        may use funds appropriated for grants to States under this 
        title to make payments on behalf of States as the Secretary 
        determines is appropriate for the use of the system described 
        in paragraph (1).
            ``(3) Employer participation.--The Secretary of Labor shall 
        work with the State agency charged with administration of the 
        State law to increase the number of employers using this system 
        and to resolve any technical challenges with the system.
            ``(4) Reports on use of electronic system.--After the end 
        of each fiscal year, on a date determined by the Secretary, 
        each State shall report to the Secretary information on--
                    ``(A) the proportion of employers using the 
                designated system described in paragraph (1);
                    ``(B) the reasons employers are not using such 
                system; and
                    ``(C) the efforts the State is undertaking to 
                increase employer's use of such system.
            ``(5) Enforcement.--Whenever the Secretary of Labor, after 
        reasonable notice and opportunity for hearing to the State 
        agency charged with the administration of the State law, finds 
        that there is a failure to comply substantially with the 
        requirements of paragraph (1), the Secretary of Labor shall 
        notify such State agency that further payments will not be made 
        to the State until the Secretary of Labor is satisfied that 
        there is no longer any such failure. Until the Secretary of 
        Labor is so satisfied, such Secretary shall make no future 
        certification to the Secretary of the Treasury with respect to 
        the State.''.
    (c) Unemployment Compensation Integrity Data Hub.--
            (1) In general.--Section 303(a) of the Social Security Act 
        (42 U.S.C. 503(a)), as amended by subsection (a), is amended by 
        adding at the end the following new paragraph:
            ``(14) The State agency charged with administration of the 
        State law shall use the system designated by the Secretary of 
        Labor for cross-matching claimants of unemployment compensation 
        under State law against any databases in the system to prevent 
        and detect fraud and improper payments.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to weeks of unemployment beginning on or after the 
        earlier of--
                    (A) the date the State changes its statutes, 
                regulations, or policies in order to comply with such 
                amendment; or
                    (B) October 1, 2022.
    (d) Reducing State Burden in Providing Data To Prevent and Detect 
Fraud.--Section 303 of the Social Security Act (42 U.S.C. 503), as 
amended by subsection (b), is amended by adding at the end the 
following new subsection:
    ``(o) Use of Unemployment Claims Data To Prevent and Detect 
Fraud.--The Inspector General of the Department of Labor shall, for the 
purpose of identifying and investigating fraud in unemployment 
compensation programs, have direct access to each of the following 
systems:
            ``(1) The system designated by the Secretary of Labor for 
        the electronic transmission of requests for information 
        relating to interstate claims for unemployment compensation.
            ``(2) The system designated by the Secretary of Labor for 
        cross-matching claimants of unemployment compensation under 
        State law against databases to prevent and detect fraud and 
        improper payments (as referred to in subsection (a)(14)).''.
    (e) Use of National Directory of New Hires in Administration of 
Unemployment Compensation Programs and Penalties on Noncomplying 
Employers.--
            (1) In general.--Section 303 of the Social Security Act (42 
        U.S.C. 503), as amended by subsections (b) and (d), is amended 
        by adding at the end the following new subsection:
    ``(p) Use of National Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 2022, the 
        State agency charged with administration of the State law 
        shall--
                    ``(A) compare information in the National Directory 
                of New Hires established under section 453(i) against 
                information about individuals claiming unemployment 
                compensation to identify any such individuals who may 
                have become employed, in accordance with any 
                regulations or guidance that the Secretary of Health 
                and Human Services may issue and consistent with the 
                computer matching provisions of the Privacy Act of 
                1974;
                    ``(B) take timely action to verify whether the 
                individuals identified pursuant to subparagraph (A) are 
                employed; and
                    ``(C) upon verification pursuant to subparagraph 
                (B), take appropriate action to suspend or modify 
                unemployment compensation payments, and to initiate 
                recovery of any improper unemployment compensation 
                payments that have been made.
            ``(2) Enforcement.--Whenever the Secretary of Labor, after 
        reasonable notice and opportunity for hearing to the State 
        agency charged with the administration of the State law, finds 
        that there is a failure to comply substantially with the 
        requirements of paragraph (1), the Secretary of Labor shall 
        notify such State agency that further payments will not be made 
        to the State until the Secretary of Labor is satisfied that 
        there is no longer any such failure. Until the Secretary of 
        Labor is so satisfied, such Secretary shall make no future 
        certification to the Secretary of the Treasury with respect to 
        the State.''.
            (2) Penalties.--
                    (A) In general.--Section 453A(d) of the Social 
                Security Act (42 U.S.C. 653a(d)), in the matter 
                preceding paragraph (1), is amended by striking ``have 
                the option to set a State civil money penalty which 
                shall not exceed'' and inserting ``set a State civil 
                money penalty which shall be no less than''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to penalties assessed on 
                or after October 1, 2022.
    (f) State Performance.--
            (1) In general.--Section 303 of the Social Security Act (42 
        U.S.C. 503), as amended by subsections (b), (d), and (e), is 
        amended by adding at the end the following new subsection:
    ``(q) State Performance.--
            ``(1) In general.--For purposes of assisting States in 
        meeting the requirements of this title, title IX, title XII, or 
        chapter 23 of the Internal Revenue Code of 1986 (commonly 
        referred to as `the Federal Unemployment Tax Act'), the 
        Secretary of Labor may--
                    ``(A) consistent with subsection (a)(1), establish 
                measures of State performance, including criteria for 
                acceptable levels of performance, performance goals, 
                and performance measurement programs;
                    ``(B) consistent with subsection (a)(6), require 
                States to provide to the Secretary of Labor data or 
                other relevant information from time to time concerning 
                the operations of the State or State performance, 
                including the measures, criteria, goals, or programs 
                established under paragraph (1);
                    ``(C) require States with sustained failure to meet 
                acceptable levels of performance or with performance 
                that is substantially below acceptable standards, as 
                determined based on the measures, criteria, goals, or 
                programs established under subparagraph (A), to 
                implement specific corrective actions and use specified 
                amounts of the administrative grants under this title 
                provided to such States to improve performance; and
                    ``(D) based on the data and other information 
                provided under subparagraph (B)--
                            ``(i) to the extent the Secretary of Labor 
                        determines funds are available after providing 
                        grants to States under this title for the 
                        administration of State laws, recognize and 
                        make awards to States for performance 
                        improvement, or performance exceeding the 
                        criteria or meeting the goals established under 
                        subparagraph (A); or
                            ``(ii) to the extent the Secretary of Labor 
                        determines funds are available after providing 
                        grants to States under this title for the 
                        administration of State laws, provide incentive 
                        funds to high-performing States based on the 
                        measures, criteria, goals, or programs 
                        established under subparagraph (A).
            ``(2) Enforcement.--Whenever the Secretary of Labor, after 
        reasonable notice and opportunity for hearing to the State 
        agency charged with the administration of the State law, finds 
        that there is a failure to comply substantially with the 
        requirements of paragraph (1), the Secretary of Labor shall 
        notify such State agency that further payments will not be made 
        to the State until the Secretary of Labor is satisfied that 
        there is no longer any such failure. Until the Secretary of 
        Labor is so satisfied, such Secretary shall make no future 
        certification to the Secretary of the Treasury with respect to 
        the State.''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act.
    (g) Funding.--Out of any money in the Treasury of the United States 
not otherwise appropriated, there are appropriated to the Secretary of 
Labor $2,000,000,000 to assist States in carrying out the amendments 
made by this section, which may include regional or multi-State 
efforts. Amounts appropriated under the preceding sentence shall remain 
available until expended.

SEC. 6. EMERGENCY DESIGNATION.

    (a) In General.--The amounts provided by this Act and the 
amendments made by this Act are designated as an emergency requirement 
pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act and the 
amendments made by this Act are designated as an emergency requirement 
pursuant to section 4112(a) of H. Con. Res. 71 (115th Congress), the 
concurrent resolution on the budget for fiscal year 2018.
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