Sponsors (3)
The bill trades modest federal savings and stronger state-level verification/audit authority for excluding very high earners from federal UI, while imposing additional administrative and compliance burdens on states and claimants and risking inconsistent treatment across states.
State unemployment agencies gain clearer authority to verify high wages, recover overpayments, and face increased federal audit/oversight for high‑wage claims, which can reduce improper payments and improve accountability.
Taxpayers may see reduced federal unemployment outlays because individuals with base‑period wages at or above $1,000,000 are excluded from federally funded unemployment benefits.
State governments will likely face increased administrative burden and costs to verify wages, audit certifications, and recover overpayments—costs for which no additional federal administrative funding is provided.
Applicants must self‑certify very high incomes under penalty of repayment, which can slow processing, increase compliance burdens for claimants, and create more administrative work for agencies.
Limiting federal guidance increases the risk of inconsistent state rules and unequal treatment of high‑wage claimants across states.
Based on analysis of 2 sections of legislative text.
Bars Federal funds from paying unemployment benefits to individuals with base-period wages of $1,000,000+ and requires self-certification, state verification, and recovery of overpayments.
Introduced May 14, 2025 by Joni Ernst · Last progress May 14, 2025
Prohibits use of Federal funds to pay unemployment compensation to any individual whose base-period wages equal or exceed $1,000,000 and bars Federal funding of administrative costs to make such payments. Applicants must self-certify their base-period wages are below $1,000,000; state agencies should verify wages to the degree possible, must recover any overpayments, and certifications can be audited by the Department of Labor or the Government Accountability Office. The rule applies to weeks of unemployment beginning on or after enactment.