Sponsors (2)
The bill trades reduced federal pandemic unemployment spending (and lower near-term federal outlays) for preserving limited administrative reimbursement to states, while cutting off supplemental benefits and potentially weakening future unemployment response capacity.
State unemployment agencies can continue to receive federal reimbursement for administrative expenses, helping states process claims and maintain staffing during the transition.
Taxpayers/federal budget benefit because rescinding unobligated CARES Act balances reduces federal outlays from the Unemployment Trust Fund, lowering near-term federal spending levels.
Unemployed people will lose CARES Act pandemic benefits (PUA, FPUC, PEUC) after about 30 days, reducing weekly income for many jobless workers and their families.
States are prohibited from entering or reentering FPUC agreements, blocking the creation of new supplemental benefit programs and limiting state options to extend aid to unemployed residents.
Rescinding unobligated CARES balances may reduce funds available for future unemployment responsiveness, weakening the ability of federal and state systems to respond if another surge in claims occurs.
Based on analysis of 2 sections of legislative text.
Terminates most CARES Act pandemic unemployment benefit authorities and rescinds unobligated CARES balances from the Unemployment Trust Fund, effective 30 days after enactment.
Official title: Amend the CARES Act to terminate unemployment insurance benefit payments under such Act and to rescind unobligated balances of amounts appropriated for the purposes of such payments, and for other purposes.
Introduced February 2, 2026 by Jon Husted · Last progress February 2, 2026
Terminates most CARES Act pandemic unemployment benefit programs and rescinds unobligated CARES appropriations in the Unemployment Trust Fund, generally effective 30 days after enactment. It preserves limited reimbursements for State administrative costs while prohibiting new or renewed State agreements for the terminated benefits and repeals certain pandemic-era benefit authorities.