Unemployment Insurance Modernization and Recession Readiness Act

Bill: 118-s-3140
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2023-10-26
Policy area: Labor and Employment
Latest action: action_date: 2023-10-26
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 118th CONGRESS 1st Session S. 3140 IN THE SENATE OF THE UNITED STATES October 26, 2023 Mr. Wyden (for himself, Mr. Bennet , Mr. Fetterman , Ms. Warren , Mr. Brown , Mr. Reed , Mr. Booker , and Mr. Sanders ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To modernize unemployment compensation benefits.

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 survivors and victims of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking. 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. I Modernization of extended benefits 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 . 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). . 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. . 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, 2025. 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. . 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. . 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. . 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 . 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. 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, 2025 (or earlier if established by State law (but in no case earlier than 60 days after the date of enactment of this Act)). II Modernization of regular unemployment 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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 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, 2025. 207. Unemployment compensation for survivors and victims of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking (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 survivor or victim of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking; and ; and (2) by adding at the end the following new subsection: (h) Survivors and victims of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking (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 survivor or victim of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking 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 sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking 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 sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking. (3) Definitions (A) In general Subject to subparagraph (B), in this section: (i) 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. (ii) Other harassment The term other harassment has the meaning given the term harassment (other than sexual harassment) under State law, regulation, or policy. (iii) Sexual harassment The term sexual harassment means hostile, intimidating, or oppressive behavior based on sex that creates an offensive work environment. (B) States may apply broader definition A State may adopt a broader definition of any term under clauses (i), (ii), and (iii) 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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, 2025. 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: 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 2025, $25; and (B) for 2026 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 step-child; (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 by 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, 2025. 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, 2025. 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, 2025. 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: 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 by 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, 2025. III Jobseeker Allowance 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: 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 meet 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 survivor or victim of sexual harassment, other harassment, domestic violence, dating violence, sexual assault, or stalking (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; and (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 2025, $250; and (ii) for 2026 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 2025, 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 2020 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 sections 215 and 218, is amended by 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, 2025.