Van Hollen, Schumer, Wyden Introduce Legislation to Extend Expanded Unemployment Insurance and Require Program Continue Providing Benefits Until Each State’s Economic Conditions Improve

U.S. Senators Chris Van Hollen (D-MD), Chuck Schumer (D-NY), and Ron Wyden (D-OR) today introduced the American Workforce Rescue Act, legislation that would establish “automatic stabilizers” to ensure unemployment benefits remain available for working families during periods of persistent unemployment, a priority for Senate Democrats in the next COVID-19 bill.

Specifically, the proposal would extend the $600 increase in weekly UI benefits, which Senate Democrats secured in the CARES Act, beyond July 31st, 2020 until a state’s three-month average total unemployment rate falls below 11%. The benefit amount then reduces by $100 for every percentage point decrease in the state’s unemployment rate, until the rate falls below 6%.

These critical, enhanced unemployment insurance benefits included in the CARES Act are set to expire at the end of July 2020. Meanwhile, more than 33 million Americans are currently receiving unemployment insurance or are still awaiting benefit approval. Over-burdened, under-resourced state and local-governments are grappling with unprecedented economic turmoil—and many Americans who returned to work have again been laid off. 

While enhanced unemployment benefits are set to expire in 31 days, it’s clear the unemployment crisis will not. The Senators' legislation gives American families confidence that they will be able to draw on these vital UI benefits to pay rent and put food on the table  as long as the economic crisis continues. Expanded unemployment benefits established in earlier COVID-19 legislation remain a critical lifeline for workers and families. All Americans—particularly lower-wage workers and communities of color ravaged by COVID-19—must remain equipped with the resources needed to stay afloat during the current, pandemic-fueled economic crisis, and the recovery period to come. 

The legislation would extend critical unemployment benefits in each state based on economic conditions—not arbitrary cut-off dates established by Congress that disregard need. The American Workforce Rescue Act also extends the 13 weeks of extended benefits provided by the Pandemic Emergency Unemployment Compensation (PEUC) program in the CARES Act until March 27, 2021, and these benefits will remain available for as long as a state’s unemployment rate is above 5.5%, with the number of weeks of benefits available increasing by 13 for each percentage point the unemployment rate increases between 5.5% and 8.5%. Additionally, the bill extends other critical unemployment benefits included in the CARES Act, including the Pandemic Unemployment Assistance (PUA), which provides coverage to the self-employed, gig workers, and others who are not eligible for traditional unemployment insurance, through March 2021, after which the benefits are tied to states’ unemployment levels.

Coronavirus relief must meet and reflect the country’s economic condition. The Senators' American Workforce Rescue Act meets this challenge. 

A summary of the bill text can be found here and below: 

Federal Pandemic Unemployment Compensation.

After July 31, 2020, the Federal Pandemic Unemployment Compensation (FPUC) benefit amount will remain at $600 for all weeks until a state’s three-month average total unemployment rate falls below 11%.  Once the unemployment rate falls below 11%, the benefit amount reduces by $100 for each percentage point decrease in a state’s unemployment rate. 

Specifically:

• While a state’s unemployment rate is at least 10% and below 11%, the FPUC benefit is $500. 
• While a state’s unemployment rate is at least 9% and below 10%, the FPUC benefit is $400.
• While a state’s unemployment rate is at least 8% and below 9%, the FPUC benefit is $300.
• While a state’s unemployment rate is at least 7% and below 8%, the FPUC benefit is $200.
• While a state’s unemployment rate is at least 6% and below 7%, the FPUC benefit is $100.

Pandemic Emergency Unemployment Compensation.

The Pandemic Emergency Unemployment Compensation (PEUC) program is extended until March 27, 2021, after which it will remain available until a state’s unemployment rate falls below 5.5%.  If a state’s unemployment rate exceeds 5.5%, the number of weeks of PEUC benefits available will increase by 13 for each percentage point increase in the unemployment rate, up to a maximum of 52 weeks. 

Specifically:

• While a state’s unemployment rate is at least 8.5%, a total of 52 weeks of PEUC is available.
• While a state’s unemployment rate is at least 7.5% but below 8.5%, a total of 39 weeks of PEUC is available. 
• While a state’s unemployment rate is at least 6.5% but below 7.5%, a total of 26 weeks of PEUC is available.
• While a state’s unemployment rate is at least 5.5% but below 6.5%, a total of 13 weeks of PEUC is available. 

Extension of Enhanced Unemployment Insurance Benefits.  

The bill extends other enhanced unemployment insurance programs established in the CARES Act and the Families First Coronavirus Response Act, including the Pandemic Unemployment Assistance program (PUA), the federal financing of state work-share programs, and emergency relief for non-profits, Indian Tribes and governmental entities – will remain effective until March 27, 2021, regardless of a state’s unemployment rate. Thereafter, the programs will be available until a state’s unemployment rate falls below 5.5%.