Sponsors (3)
The bill trades modest federal savings and stronger state control and audit authority over very high‑wage unemployment claims for greater state administrative costs, the risk of erroneous denials, inconsistent state rules, and denial of federal UI to million‑dollar earners.
State unemployment agencies gain clearer authority and new auditing/verification requirements to identify and reduce improper high‑wage UI payments, improving program integrity.
The bill prevents the Secretary of Labor from issuing guidance that would block States from disqualifying very high‑wage claimants, preserving state flexibility over eligibility rules.
Taxpayers see reduced federal outlays because federal funds would be barred from covering unemployment benefits for individuals with base‑period wages of $1,000,000 or more.
States will face increased administrative burden and costs to implement wage verifications, audits, and recoveries for high‑wage claims, without additional federal administrative funding.
Incomplete or slow verification systems risk erroneous denials, potentially leaving eligible claimants without benefits while disputes are resolved.
The law creates a patchwork of eligibility rules across States by empowering States to disqualify claimants and barring federal guidance, producing inconsistency and confusion for workers and employers.
Based on analysis of 2 sections of legislative text.
Blocks federal UI funds for individuals with base‑period wages of $1,000,000+ and requires states to verify wages, keep auditable records, and recover overpayments.
Prohibits federal funds from being used to pay unemployment benefits or related administrative costs to any individual whose wages in the base period were $1,000,000 or more, and requires states to collect self‑certifications, verify wages using available systems, maintain auditable certifications, and recover overpayments. The prohibition applies to weeks of unemployment beginning on or after enactment and the Secretary of Labor is barred from issuing regulations or guidance that would prevent states from disqualifying such high‑wage claimants. The bill defines the covered federal unemployment programs (including federal civilian and ex‑servicemembers’ UI, extended benefits, temporary federal extensions, and similar programs) and makes state compliance and verification procedures mandatory, creating new administrative duties for states and rules limiting federal oversight.
Official title: End unemployment payments to jobless millionaires.
Introduced May 14, 2025 by Joni Ernst · Last progress May 14, 2025