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Creates new work-search and cooperation rules for regular unemployment benefits by adding two requirements to federal law: (1) claimants must respond to requests about potentially available work, attend scheduled interviews and reemployment services, and comply with other reasonable requests such as drug tests or skills assessments; and (2) allows a person with whom a claimant seeks employment to voluntarily report the claimant’s failure to meet those rules to the State. Directs the Secretary of Labor to study whether increasing random Benefit Accuracy Measurement (BAM) audits would improve State unemployment administration and to issue regulations to increase such audits if the study finds a benefit. Also conditions transfers from the federal extended unemployment compensation account to State accounts on the Secretary certifying that a State’s law includes the new claimant requirements and the voluntary reporting mechanism. Most provisions take effect for weeks beginning more than one year after enactment, with an exception for States whose legislatures were not in session during that year (effective after the next legislative session).
The bill conditions continued federal extended unemployment funding on state compliance and adds tools to detect noncompliance—potentially preserving funds and encouraging reemployment but increasing administrative burdens and risking benefit losses for some claimants and states that fail to comply.
Unemployed workers in states that adopt the bill's required provisions will continue receiving extended federal unemployment funds, preserving income and benefits for many jobseekers.
State governments gain a clear federal compliance standard for eligibility to receive extended unemployment transfers, giving states predictable targets for policy and budgeting decisions.
Unemployed workers are incentivized to actively seek work and engage with reemployment services, which may speed reemployment and reduce the duration of benefit dependency.
States that fail to obtain federal certification risk losing extended federal unemployment transfers, which would reduce benefits for unemployed people in those states and increase fiscal pressure on state programs.
Unemployed claimants (especially low-income individuals) may lose benefits for failing drug tests or for not meeting potentially subjective 'reasonable' work or reporting requests, creating income instability and hardship.
Voluntary reporting by prospective employers or others could enable false or malicious complaints, producing wrongful benefit denials and additional administrative appeals burdening claimants and agencies.
Introduced February 7, 2025 by Chuck Edwards · Last progress February 7, 2025