Sponsors (2)
The bill preserves federal reimbursement to keep state unemployment offices functioning and trims federal pandemic-era balances to lower spending, but it ends supplemental CARES-era benefits and bars states from restoring them, cutting income for unemployed Americans and reducing program flexibility.
State unemployment agencies will continue to receive federal reimbursement for administrative expenses, helping states keep processing claims during the transition.
Taxpayers face lower near‑term federal outlays because unobligated CARES Act balances in the Unemployment Trust Fund are rescinded, reducing federal spending related to pandemic unemployment programs.
Unemployed people will lose CARES Act pandemic benefits (PUA, FPUC, PEUC) after about 30 days, reducing weekly income for many jobless workers and middle‑class families.
States are prohibited from entering or reentering FPUC agreements, preventing states from creating or restoring supplemental benefit programs and limiting options to replace lost federal benefits.
Rescinding unobligated CARES balances reduces funds available in the Unemployment Trust Fund, which could weaken the system's ability to respond to a future surge in claims.
Based on analysis of 2 sections of legislative text.
Most CARES Act pandemic unemployment benefits are ended and certain unobligated CARES balances in the Unemployment Trust Fund are rescinded, generally 30 days after enactment.
Introduced February 2, 2026 by Jon Husted · Last progress February 2, 2026
Terminates most pandemic-era unemployment benefit programs created by the CARES Act and rescinds specified unobligated CARES Act balances in the Unemployment Trust Fund, generally taking effect 30 days after enactment. The bill stops most payments under Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC) and related mixed-earner payments, repeals parts of Pandemic Emergency Unemployment Compensation (PEUC), and rescinds certain unobligated balances while preserving federal reimbursement for some state administrative costs.