To modernize unemployment compensation benefits.
Sponsors
Legislative Progress
IntroducedMr. Wyden (for himself, Mr. Bennet, Mr. Reed, Ms. Warren, …
Summary
What This Bill Does
The Unemployment Insurance Modernization and Recession Readiness Act overhauls the American unemployment insurance system by expanding eligibility, increasing benefit amounts, extending duration, and creating new automatic triggers that activate additional support during economic downturns. It shifts extended unemployment benefit costs from states to the federal government and creates an entirely new "Jobseeker Allowance" program for workers who do not qualify for traditional unemployment insurance.
Who Benefits and How
- Unemployed workers receive significantly higher and longer-lasting benefits: a minimum 75% wage replacement, at least 26 weeks of regular benefits, up to 52 weeks of extended benefits during severe recessions, plus a new $25/week per dependent allowance.
- Part-time workers, gig workers, and the self-employed gain new access to unemployment support. The ABC test for worker classification could convert many gig workers to employees, entitling them to traditional benefits.
- Workers who leave jobs due to domestic violence, harassment, family illness, or childcare loss now qualify for benefits, closing gaps that previously left vulnerable workers without support.
- New labor force entrants and those without traditional employment history can receive a new $250/week Jobseeker Allowance federally funded.
Who Bears the Burden and How
- Federal taxpayers bear the largest new cost: 100% funding of extended benefits (up from 50%), the new Jobseeker Allowance program, and emergency enhanced compensation during declared disasters.
- Gig economy companies (Uber, Lyft, DoorDash, etc.) face major new costs if their workers are reclassified as employees under the ABC test, requiring them to pay into the unemployment insurance system.
- Employers in states with currently weak UI programs may see higher payroll taxes as states must meet new federal minimums for benefit duration and amounts.
- State unemployment agencies face significant new administrative burdens implementing new programs, though costs are largely federally reimbursed.
Key Provisions
- Shifts extended unemployment benefits to 100% federal funding (from 50% state/50% federal split)
- Creates automatic recession triggers at 5.5%, 6.5%, 7.5%, and 8.5% unemployment, providing up to 52 weeks of extended benefits
- Establishes federal floors: minimum 26 weeks of benefits, 75% wage replacement, maximum weekly benefit of 2/3 state average wage
- Creates new $250/week Jobseeker Allowance for unemployed workers not qualifying for regular UI
- Implements ABC test for worker classification, likely converting many gig workers to employees
- Adds $25/week per dependent allowance and eliminates waiting week before benefits begin
- Provides emergency enhanced unemployment (100% wage replacement) during declared disasters
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Modernizes unemployment insurance by expanding eligibility, increasing benefit amounts and duration, providing full federal funding for extended benefits, creating automatic recession triggers, and establishing new programs including jobseeker allowances and emergency enhanced compensation.
Policy Domains
Legislative Strategy
"Establish comprehensive automatic stabilizers for recessions through unemployment insurance modernization, shifting costs from states to federal government while expanding eligibility and benefits."
Likely Beneficiaries
- Unemployed workers (expanded eligibility, higher benefits, longer duration)
- Part-time workers (new eligibility for partial unemployment)
- Gig workers and independent contractors (presumptive employee status under ABC test)
- Workers with dependents (new dependents allowance)
- Workers affected by disasters/emergencies (emergency enhanced compensation)
- Self-employed workers seeking to restart businesses (jobseeker allowance eligibility)
- Educational employees between terms (retroactive compensation if not rehired)
- Workers in labor disputes (benefits if locked out or employer violates law)
- Student-workers (expanded eligibility)
Likely Burden Bearers
- Federal taxpayers (full federal funding of extended benefits, new programs)
- Employers misclassifying workers as independent contractors (ABC test compliance)
- States (administrative burden to implement new programs, though costs are federally funded)
- Gig economy companies relying on contractor classification (Uber, Lyft, DoorDash, etc.)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Labor
- "the_commissioner"
- → Commissioner of the Bureau of Labor Statistics
- "the_secretary"
- → Secretary of Labor
- "the_secretary_treasury"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
On indicator when state average total unemployment rate (seasonally adjusted) for most recent 3 months equals or exceeds 5.5 percent.
On indicator when national average total unemployment rate (seasonally adjusted) for most recent 3 months equals or exceeds 5.5 percent.
On indicator when national TUR is at least 0.5 percentage points higher than the lowest 3-month average in preceding 12 months.
Includes children under 18 in care of individual, full-time students under 24, foster children, family members with disabilities in care of individual, nonworking senior family members, nonworking spouses not receiving UI, and others determined by Secretary of Labor.
An individual is presumed an employee unless: (A) free from control and direction in performing service; (B) service is outside usual course of employer business; and (C) individual is customarily engaged in independently established trade or business of same nature.
Any period during which a public health emergency has been declared under section 319 of the Public Health Service Act or a major disaster/emergency has been declared by the President under the Stafford Act.
An individual who is unemployed or partially employed, able to work and available to work, actively seeking work, at least 19 years old (or 18 if in foster care) or has high school diploma, and has AGI not exceeding Social Security contribution and benefit base.
Tier 2: TUR 6.5-7.5%; Tier 3: TUR 7.5-8.5%; Tier 4: TUR 8.5%+ - determines duration of extended benefits.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology