Sponsors (3)
The bill gives states stronger authority and verification tools to limit federal unemployment payments to very high earners and reduce improper payments, but shifts administrative burdens to states, risks wrongful denials, and creates uneven eligibility across states.
State unemployment agencies gain clear authority and auditing/verification requirements to flag and recover improper high‑wage UI claims, improving program integrity and reducing improper payments.
Taxpayers face lower federal outlays because federal funds are barred from paying unemployment benefits to individuals with base‑period wages ≥ $1,000,000.
States are protected from federal guidance that would prevent them from disqualifying high‑wage claimants, preserving state flexibility in UI eligibility decisions.
Risk that incomplete wage data or verification delays will cause erroneous denials, leaving some eligible claimants (including middle‑class families) without benefits until disputes are resolved.
States could face increased administrative burden and costs to implement verifications, audits, and recoveries for high‑wage cases without corresponding federal administrative funding.
Creates inconsistency across states by empowering states to disqualify claimants and barring federal guidance, producing a patchwork of eligibility rules and uneven access to UI benefits.
Based on analysis of 2 sections of legislative text.
Bars federal funds from paying unemployment benefits to claimants with base‑period wages of $1,000,000+ and requires states to verify wages and recover overpayments.
Prohibits federal funds from being used to pay unemployment compensation or related administrative costs to any individual whose wages during the individual’s base period equal or exceed $1,000,000. Requires states to collect self‑certifications from claimants, verify wages using available systems, maintain auditable records, and recover any federal overpayments for weeks of unemployment beginning on or after enactment. The Secretary of Labor is barred from issuing regulations or guidance that would prevent states from disqualifying such high‑wage claimants from federally funded benefits.
Introduced May 14, 2025 by Joni Ernst · Last progress May 14, 2025