Sponsors (5)
The bill reduces federal spending and preserves some unemployment administration funding for states, but it cuts enhanced unemployment benefits, directly reducing income for jobless Americans and shifting burdens onto low-income households, social services, and state governments.
Taxpayers: Federal outlays fall because enhanced CARES Act unemployment payments and unobligated balances are rescinded, lowering near-term deficit spending.
State governments: Federal reimbursements for certain unemployment administrative costs continue, avoiding abrupt funding gaps for unemployment program administration.
Unemployed workers: Loss of CARES Act benefits (PUA, $600 FPUC, and PEUC) 30 days after enactment will reduce weekly income for many jobless individuals.
Low-income households and local social services: Ending enhanced unemployment payments will increase poverty and difficulty paying rent/utilities and will raise demand for SNAP, rent assistance, Medicaid, and other programs, stressing state and local resources.
State governments: The bill prevents states from reentering or expanding emergency unemployment programs, limiting state-level flexibility to respond to local spikes in unemployment.
Based on analysis of 2 sections of legislative text.
Terminates major CARES Act pandemic unemployment programs and rescinds unobligated balances, mostly effective 30 days after enactment.
Official title: To amend the CARES Act to terminate unemployment insurance benefit payments under such Act and to rescind unobligated balances of amounts appropriated for the purpose of such payments, and for other purposes.
Introduced February 2, 2026 by Max Miller · Last progress February 2, 2026
Terminates large parts of the CARES Act pandemic unemployment programs and rescinds unobligated balances that funded them, mostly taking effect 30 days after enactment. It preserves a small set of administrative reimbursements for states but bars new agreements and many emergency payments under those programs going forward.