Sponsors (2)
The bill reduces federal pandemic-era spending and deficit pressure while preserving limited admin funds for states, but it abruptly cuts emergency UI payments and restricts states' ability to restore supplements—raising immediate hardship risks for unemployed and low‑income households and potentially disrupting benefit administration.
Taxpayers and the federal budget: rescinds unobligated CARES Act balances and ends emergency pandemic UI programs, reducing near‑term federal outlays and lowering deficit pressure.
State governments and claims processors: preserves limited federal payments for administrative expenses so states can finish processing existing claims and complete closeout activities.
Unemployed and low‑income individuals: recipients of PUA, FPUC, or MEUC lose emergency benefit payments after 30 days, reducing their income and increasing immediate financial strain.
Low‑income individuals' health and safety: the sudden cutoff of pandemic UI supplements increases risk of food and housing insecurity and other hardships for vulnerable households.
State governments' flexibility: prohibiting states from entering or reentering agreements under section 2104(a) limits states' ability to restore supplemental pandemic UI benefits if economic or public‑health conditions worsen.
Based on analysis of 2 sections of legislative text.
Terminates CARES Act emergency unemployment programs and rescinds specified unobligated balances, mostly 30 days after enactment.
Introduced February 2, 2026 by Jon Husted · Last progress February 2, 2026
Terminates key CARES Act unemployment insurance programs and rescinds remaining unobligated balances, mostly 30 days after enactment. It ends Pandemic Unemployment Assistance, the federal emergency weekly benefit increases (Federal Pandemic Unemployment Compensation), and Mixed Earner Unemployment Compensation, while allowing limited continued payments for certain state administrative costs and prohibiting states from entering or reentering agreements for the enhanced federal pandemic payments. The legislation rescinds unobligated funds from the extended unemployment compensation account and other CARES Act appropriations tied to these programs, reducing remaining federal balances once the termination takes effect.