Sponsors (7)
Ask me how I read this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Modifies subsection (c) of 42 U.S.C. 1105 to make transfers from the extended unemployment compensation account subject to a new subsection (e); adds new subsection (e) that conditions transfers to State accounts on a certification by the Secretary of Labor that the State law includes the provisions required by paragraphs (13) and (14) of section 303(a), and states that the subsection applies notwithstanding other law enacted after the date of enactment unless that law specifically cites the subsection.
Adds two new paragraphs ((13) and (14)) to subsection (a) of 42 U.S.C. 503 to require claimant cooperation with employer requests (including interviews, reemployment services, drug testing, and skill assessments) as a condition of eligibility and to allow voluntary reporting by prospective employers of claimant noncompliance.
Requires people getting extended unemployment benefits to meet new job‑related obligations and expands auditing and reporting of unemployment programs. Claimants may be asked to respond to employer contacts, attend interviews, take part in reemployment services, and comply with reasonable requests such as drug tests or skills assessments; states must allow voluntary reporting of claimant noncompliance and the Department of Labor will study and may increase random audits. Also ties the transfer of federal extended‑benefit funds to a certification: the Labor Secretary must certify that a State’s law includes the required work‑related provisions before extended unemployment funds are sent. The change takes effect on the schedule set in the amendment (immediate for most States; delayed timing for States with biennial legislatures).
Adds a new paragraph (13) to 42 U.S.C. 503(a) requiring that, as a condition of eligibility for regular compensation for any week, a claimant must, if requested in relation to work that may be available: (A) respond to requests; (B) schedule and attend an interview and participate in reemployment services at an agreed upon time; and (C) comply with any other reasonable request, including requests to undergo drug testing or skill assessments.
Adds a new paragraph (14) to 42 U.S.C. 503(a) requiring that States provide a method by which a person with whom a claimant is seeking employment may voluntarily report to the State the claimant’s failure to comply with the State law provisions described in paragraphs (12) and (13).
Requires the Secretary of Labor to conduct a study, not later than 2 years after the date of enactment, on the effect of increasing the number of random audits under the Beneficiary Accuracy Management program on the administration of State unemployment compensation laws.
If the Secretary’s report indicates that increasing the number of random audits under the Benefit Accuracy Measurement program (or any successor audit program) will improve State administration, the Secretary must, not later than 1 year after submitting the report, prescribe regulations to increase the number of such audits in accordance with the report.
General effective date: the amendments made by subsections (a) and (b) apply, with respect to a State, to weeks beginning after the date that is 1 year after the date of enactment of this Act.
Directly affected groups:
Claimants receiving unemployment benefits: They will face more defined obligations to engage with job search and reemployment activities (answer employer inquiries, attend interviews, participate in services, submit to reasonable tests/assessments). Increased reporting and audit activity could lead to closer monitoring of benefit eligibility and faster identification of noncompliance. This may raise barriers for claimants who face transportation, caregiving, health, disability, language, or scheduling constraints.
State unemployment agencies and state governments: States must ensure their statutes and procedures authorize the new requirements and must set up processes for voluntary noncompliance reports and enhanced reporting to support audits. States with biennial legislatures may need to time changes around the legislative calendar; some States may need special sessions or administrative rule changes to comply. These changes create administrative workload and potential legal drafting needs.
Employers: Employers may be asked to report claimant noncompliance and to participate indirectly in reemployment processes (contacts, interviews). Employers could face additional reporting responsibilities, but also may see faster returns of workers to open positions.
Department of Labor and federal oversight: DOL will conduct a study on random audits, implement expanded audit/reporting protocols if supported, and must review State laws to certify eligibility for extended fund transfers. DOL workload and enforcement responsibilities will grow.
Program outcomes and equity risks: The policy intends to encourage reemployment and reduce improper benefit payments. However, stricter participation and testing requirements can disproportionately affect people with caregiving responsibilities, disabilities, limited transportation, or other barriers to work. There may be legal challenges or administrative appeals if states implement stringent sanctions or if certification is denied for technical statutory deficiencies.
Timing and fiscal effects: Because the change conditions transfers of existing federal extended funds rather than creating new appropriations, States that do not timely adopt required legal authority risk losing or delaying extended funds. That can affect State budgets and unemployment‑related spending if certification is withheld. States will incur compliance costs to change statutes, update procedures, and support audits; absent matching federal administrative funding, those costs may be absorbed by State agencies (an unfunded or underfunded state burden).
Overall, the legislation strengthens federal oversight and conditions federal fund flows on State legal frameworks, increases requirements for claimants, and raises administrative and compliance demands on States and the Department of Labor. The net effect on unemployment duration and improper payment rates depends on implementation, claimant supports for reemployment, and how aggressively audits and sanctions are applied.
Expand sections to see detailed analysis
Referred to the House Committee on Ways and Means.
Introduced February 7, 2025 by Chuck Edwards · Last progress February 7, 2025
Referred to the House Committee on Ways and Means.
Introduced in House