Sponsors (7)
The bill ensures immediate income support for excepted federal employees and protects state unemployment funds during FY2026–FY2027 funding lapses by having the federal government fully reimburse states, but it shifts costs to federal taxpayers, adds administrative burdens to state agencies, and can create future repayment liabilities for affected employees.
State unemployment programs: States are fully reimbursed by the federal Unemployment Trust Fund for benefits and administrative costs paid to excepted Federal employees during FY2026–FY2027 lapses, preventing strain on state UI finances.
Excepted Federal employees: Workers who must continue to work during FY2026–FY2027 funding lapses can receive unemployment benefits for weeks worked during those lapses, providing immediate income support.
State unemployment funds and program solvency: Any recovered overpayments are returned to State unemployment funds, preserving resources available for other claimants.
Taxpayers broadly: The federal government funds 100% of reimbursements through the Unemployment Trust Fund, increasing federal outlays and potentially placing pressure on federal UI trust balances paid for by taxpayers.
State UI agencies and claimants: State agencies face increased administrative complexity to process emergency claims, manage repayments, and handle audits during and after appropriations lapses, which could delay benefits or increase administrative costs.
Excepted Federal employees: Workers who receive these unemployment payments may be required to repay benefits later if they are subsequently paid under 31 U.S.C. §1341(c)(2), creating potential personal financial burdens.
Based on analysis of 2 sections of legislative text.
Requires States to pay unemployment benefits to excepted Federal employees who perform emergency work during FY2026–FY2027 funding lapses, with full federal reimbursement and repayment rules.
Introduced September 30, 2025 by Angela Deneece Alsobrooks · Last progress September 30, 2025
Allows excepted Federal employees who perform emergency work during lapses in appropriations in FY2026 and FY2027 to apply for and receive State unemployment compensation for the weeks they worked but were not paid. States must require repayment if the employee later receives pay for that period; unrepaid amounts are treated as recoverable overpayments deposited back into the State unemployment fund. The federal government (via certification by the Labor Secretary and payment by the Treasury from the Unemployment Trust Fund) reimburses States 100% of the unemployment benefits paid and related administrative expenses.