HR7306-119

What This Bill Does

The CLOSE Act shuts down remaining CARES Act unemployment-insurance authorities. It makes most of Pandemic Unemployment Assistance under section 2102 ineffective after 30 days, bars further payments for benefits under subsection (f)(2)(A), preserves State administrative expenses, and rescinds unobligated balances in the extended unemployment compensation account that were appropriated for the program. It similarly terminates Federal Pandemic Unemployment Compensation under section 2104 after 30 days, bars States from entering or reentering agreements after enactment, preserves administrative-expense payments, and rescinds unobligated balances for the benefit payments. It repeals Pandemic Emergency Unemployment Compensation provisions in section 2107 and rescinds remaining unobligated balances tied to that program.

Who Benefits and How

Federal taxpayers and budget hawks benefit because unobligated pandemic unemployment balances are rescinded instead of remaining available for benefit payments. The Unemployment Trust Fund and Treasury benefit from closing out dormant pandemic programs and limiting new payment authority. State workforce agencies benefit only to the extent the bill preserves administrative-expense payments for closeout work. Employers may benefit indirectly if the bill reinforces the end of pandemic unemployment supplements that could affect labor supply incentives.

Who Bears the Burden and How

Unemployed workers who might otherwise claim residual pandemic unemployment benefits lose access to remaining PUA, FPUC, or PEUC payment authority after the 30-day window. State workforce agencies must stop benefit payments, refrain from entering or reentering section 2104 agreements, close out program accounting, and distinguish preserved administrative expenses from rescinded benefit funds. The Department of Labor and Treasury must implement rescissions and payment cutoffs across the Unemployment Trust Fund accounts.

Key Provisions

• Terminates most Pandemic Unemployment Assistance authority 30 days after enactment and rescinds unobligated balances.
• Terminates Federal Pandemic Unemployment Compensation payment authority, bars new State agreements, and rescinds unobligated balances.
• Repeals Pandemic Emergency Unemployment Compensation provisions and rescinds remaining unobligated balances.
• Preserves certain State administrative-expense payments while ending benefit-payment authority.