119-hr4439

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4439 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4439

 To modernize unemployment compensation benefits.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 16, 2025

 Mr. Beyer introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committee on the 
 Budget, for a period to be subsequently determined by the Speaker, in 
 each case for consideration of such provisions as fall within the 
 jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To modernize unemployment compensation benefits.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Unemployment 
Insurance Modernization and Recession Readiness Act''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--MODERNIZATION OF EXTENDED BENEFITS

Sec. 101. Full Federal funding of extended unemployment compensation.

Sec. 102. Improving the extended benefit triggers.

Sec. 103. Increase in the number of weeks of extended benefits during 
 high unemployment periods.

Sec. 104. Improved calculation of amounts in an individual's extended 
 benefit account.

Sec. 105. Transition for amounts remaining in extended benefit accounts 
 when a State is no longer in an extended 
 benefit period.

Sec. 106. Coordination of extended benefits with regular compensation.

Sec. 107. Portability of extended benefits.

Sec. 108. Additional extended benefit program improvements.

Sec. 109. Exemption of extended benefits from sequestration.

Sec. 110. Effective date.
 TITLE II--MODERNIZATION OF REGULAR UNEMPLOYMENT

Sec. 201. Floor on the number of weeks.

Sec. 202. Floor on the minimum replacement of wages.

Sec. 203. Floor on the maximum benefit.

Sec. 204. Part-time work.

Sec. 205. Base period.

Sec. 206. Expansion of good cause separations.

Sec. 207. Unemployment compensation for victims of a qualifying act of 
 violence or harassment.

Sec. 208. Elimination of waiting weeks.

Sec. 209. Temporary work assignment.

Sec. 210. Self-employment assistance program.

Sec. 211. Short-time compensation program.

Sec. 212. Minimum level of prior employment.

Sec. 213. Employee status.

Sec. 214. Eligibility of certain student-workers for unemployment 
 compensation.

Sec. 215. Dependents' allowance.

Sec. 216. Labor disputes.

Sec. 217. Educational employees.

Sec. 218. Emergency enhanced unemployment compensation.
 TITLE III--JOBSEEKER ALLOWANCE

Sec. 301. Jobseeker allowance.

 TITLE I--MODERNIZATION OF EXTENDED BENEFITS

SEC. 101. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION.

    (a) In General.--

Section 204 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--

    (1) in subsection

    (a) --
        (A) by striking ``

    (1) There shall be paid'' and all 
 that follows through the period at the end of paragraph

    (2) and inserting the following: ``

    (1) There shall be 
 paid to each State an amount equal to 100 percent of 
 the extended compensation (including allowances for 
 dependents) paid to individuals under State law.
 ``

    (2) No payment shall be made to any State under this subsection 
with respect to benefits paid if the State--
 ``
        (A) assesses payments due in lieu of contributions from 
 the employer for such benefits; or
 ``
        (B) charges the employer for purposes of employer 
 experience rating for such benefits.''; and
        (B) in paragraph

    (3) , by striking ``

section 3306
            (c) (7) of the Internal Revenue'' and all that 
 follows through ``reduced by an amount'' and inserting 
 ``paragraph

    (7) or

    (8) of 

section 3306
            (c) of the 
 Internal Revenue Code of 1986 applies shall be reduced 
 by an amount equal to 50 percent of the amount'';

    (2) by striking subsections

    (b) and
            (c) ; and

    (3) by redesignating subsections
            (d) and

    (e) as subsections

    (b) and
            (c) , respectively.

    (b) Conforming Amendment.--

Section 202

    (a)

    (6) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended by striking ``or shareable regular compensation''.

SEC. 102. IMPROVING THE EXTENDED BENEFIT TRIGGERS.

    (a) TUR Triggers.--

Section 203 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended 
by striking subsection

    (f) and inserting the following new subsections:
 ``

    (f) State TUR Trigger.--
 ``

    (1) In general.--For purposes of this section:
 ``
        (A) On indicator.--There is a State `on' 
 indicator for a week if the average rate of total 
 unemployment in such State (seasonally adjusted) for 
 the period consisting of the most recent 3 months for 
 which data for all States are published before the 
 close of such week equals or exceeds 5.5 percent.
 ``
        (B) Off indicator.--There is a State `off' 
 indicator for a week if the requirement of subparagraph
        (A) is not satisfied.
 ``

    (2) Application.--Notwithstanding the provision of any 
 State law, any week for which there would otherwise be a State 
 `on' indicator shall continue to be such a week and shall not 
 be determined to be a week for which there is a State `off' 
 indicator.
 ``

    (3) Determinations of the rate of total unemployment.--
 For purposes of this subsection, determinations of the rate of 
 total unemployment in any State for any period (and of any 
 seasonal adjustment) shall be made by the Secretary.
 ``

    (g) National TUR Trigger.--
 ``

    (1) In general.--For purposes of this section:
 ``
        (A) On indicator.--There is a State `on' 
 indicator for a week if the average rate of total 
 unemployment for all States (seasonally adjusted) for 
 the period consisting of the most recent 3 months for 
 which data for all States are published before the 
 close of such week equals or exceeds 5.5 percent.
 ``
        (B) Off indicator.--There is a State `off' 
 indicator for a week if the requirement of subparagraph
        (A) is not satisfied.
 ``

    (2) Application.--Notwithstanding the provision of any 
 State law, any week for which there would otherwise be a State 
 `on' indicator shall continue to be such a week and shall not 
 be determined to be a week for which there is a State `off' 
 indicator.
 ``

    (3) Determinations of the rate of total unemployment.--
 For purposes of this subsection, determinations of the rate of 
 total unemployment for all States for any period (and of any 
 seasonal adjustment) shall be made by the Secretary.''.

    (b) Elevated National Unemployment Trigger.--

    (1) In general.--

Section 203 of the Federal-State Extended 
 Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), as 
 amended by subsection

    (a) , is amended by adding at the end the 
 following new subsection:
 ``

    (h) Elevated National Unemployment Trigger.--
 ``

    (1) In general.--For purposes of this section:
 ``
        (A) On indicator.--There is a State `on' 
 indicator for a week if the average rate of total 
 unemployment for all States (seasonally adjusted) for 
 the period consisting of the most recent 3 months for 
 which data for all States are published before the 
 close of such week is at least 0.5 percentage points 
 higher than the lowest average rate of total 
 unemployment for all States (seasonally adjusted) for 
 any continuous 3-month period in the preceding 12 
 months.
 ``
        (B) Off indicator.--There is a State `off' 
 indicator for a week if the average rate of total 
 unemployment for all States (seasonally adjusted) for 
 the period consisting of the most recent 3 months for 
 which data for all States is published before the close 
 of such week--
 ``
            (i) has decreased for not less than 2 
 consecutive months;
 ``
            (ii) is less than 5.5 percent; and
 ``
            (iii) is less than 1.5 percentage points 
 above the average rate of total unemployment 
 for all States (seasonally adjusted) for the 
 period consisting of the most recent 3 months 
 for which data for all States is published 
 before the close of the first week for which 
 there is an `on' indicator under subparagraph
        (A) .
 ``

    (2) Application.--Notwithstanding the provision of any 
 State law, any week for which there would otherwise be a State 
 `on' indicator shall continue to be such a week and shall not 
 be determined to be a week for which there is a State `off' 
 indicator.
 ``

    (3) Determinations of the rate of total unemployment.--
 For purposes of this subsection, determinations of the rate of 
 total unemployment for all States for any period (and of any 
 seasonal adjustment) shall be made by the Secretary.
 ``

    (4) Inclusion of determination in monthly employment 
 situation reports.--Notwithstanding any other provision of law, 
 the Secretary, acting through the Commissioner of the Bureau of 
 Labor Statistics, shall include in each monthly employment 
 situation report published by the Commissioner a specific 
 determination of whether or not there is an `on' indicator 
 under paragraph

    (1)
        (A) in the United States.''.

    (2) Coordination between elevated national unemployment 
 trigger and other triggers.--

Section 203

    (b) of the Federal-
 State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
 3304 note) is amended by adding at the end the following new 
 paragraph:
 ``

    (3)
        (A) In the case of a State for which there is an `on' 
indicator for a week under subsection

    (h) and an `on' indicator for 
such week under subsection

    (f) or

    (g) , 

section 202

    (b)

    (1) shall be 
applied by substituting--
 ``
            (i) `100 per centum' for `50 per centum' in subparagraph
        (A) ; and
 ``
            (ii) `twenty-six' for `thirteen' in subparagraph
        (B) .
 ``
        (B) The increase in amounts in an account by reason of 
subparagraph
        (A) shall be in addition to any increases in amounts in an 
account by reason of paragraph

    (3) of 

section 202

    (b) .''.

SEC. 103. INCREASE IN THE NUMBER OF WEEKS OF EXTENDED BENEFITS DURING 
 HIGH UNEMPLOYMENT PERIODS.

 

Section 202

    (b) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--

    (1) in paragraph

    (1) --
        (A) in the matter preceding subparagraph
        (A) , by 
 striking ``The State law'' and inserting ``Subject to 
 paragraph

    (3) and 

section 203

    (b)

    (3) , the State law'';
        (B) in subparagraph
        (A) , by inserting ``or'' at the 
 end;
            (C) in subparagraph
        (B) , by striking ``, or'' at 
 the end and inserting a period; and
            (D) by striking subparagraph
            (C) ; and

    (2) by striking paragraph

    (3) and inserting the following 
 new paragraph:
 ``

    (3) Increase in amount in account during high 
 unemployment periods.--
 ``
        (A) Tiers.--Effective with respect to weeks 
 beginning in a high unemployment period, paragraph

    (1) shall be applied as follows:
 ``
            (i) Second tier.--In the case of weeks in 
 a tier 2 high unemployment period described in 
 subparagraph
        (B)
            (i) , by substituting--
 ``
            (I) `100 per centum' for `50 per 
 centum' in subparagraph
        (A) ; and
 ``
            (II) `twenty-six' for `thirteen' 
 in subparagraph
        (B) .
 ``
            (ii) Third tier.--In the case of weeks in 
 a tier 3 high unemployment period described in 
 subparagraph
        (B)
            (ii) , by substituting--
 ``
            (I) `150 per centum' for `50 per 
 centum' in subparagraph
        (A) ; and
 ``
            (II) `thirty-nine' for `thirteen' 
 in subparagraph
        (B) .
 ``
            (iii) Fourth tier.--In the case of weeks 
 in a tier 4 high unemployment period described 
 in subparagraph
        (B)
            (iii) , by substituting--
 ``
            (I) `200 per centum' for `50 per 
 centum' in subparagraph
        (A) ; and
 ``
            (II) `fifty-two' for `thirteen' 
 in subparagraph
        (B) .
 ``
        (B) High unemployment periods.--
 ``
            (i) Second tier.--For purposes of 
 subparagraph
        (A)
            (i) , a second tier high 
 unemployment period described in this clause is 
 any period during which an extended benefit 
 period would be in effect if subsection

    (f)

    (1)
        (A) or

    (g)

    (1)
        (A) of 

section 203 were 
 applied by substituting `6.5 percent but is 
 less than 7.5 percent' for `5.5 percent'.
 ``
            (ii) Third tier.--For purposes of 
 subparagraph
        (A)
            (ii) , a third tier high 
 unemployment period described in this clause is 
 any period during which an extended benefit 
 period would be in effect if subsection

    (f)

    (1)
        (A) or

    (g)

    (1)
        (A) of 

section 203 were 
 applied by substituting `7.5 percent but is 
 less than 8.5 percent' for `5.5 percent'.
 ``
            (iii) Fourth tier.--For purposes of 
 subparagraph
        (A)
            (iii) , a fourth tier high 
 unemployment period described in this clause is 
 any period during which an extended benefit 
 period would be in effect if subsection

    (f)

    (1)
        (A) or

    (g)

    (1)
        (A) of 

section 203 were 
 applied by substituting `8.5 percent' for `5.5 
 percent'.
 ``
            (C) Individuals remain eligible for augmented 
 amount even if tier threshold no longer met.--If an 
 individual's account is augmented under subparagraph
        (B) because a State triggers on to a tier described in 
 clause
            (i) ,
            (ii) , or
            (iii) of subparagraph
        (B) , the 
 augmented amount shall remain in such account for the 
 duration of the individual's benefit year even if the 
 requirements for such tier are no longer met.
 ``
            (D) Clarification.--The triggers under 
 subsections
            (d) and

    (h) of 

section 203 shall not apply 
 for purposes of determining high unemployment periods 
 under this paragraph.''.

SEC. 104. IMPROVED CALCULATION OF AMOUNTS IN AN INDIVIDUAL'S EXTENDED 
 BENEFIT ACCOUNT.

    (a) In General.--

Section 202

    (b)

    (1) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended, 
in the matter preceding subparagraph
        (A) , by striking ``the least'' and 
inserting ``the greatest''.

    (b) Effective Date.--The amendment made by subsection

    (a) shall 
apply to extended compensation accounts established on or after the 
earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendment; or

    (2) January 1, 2027.

SEC. 105. TRANSITION FOR AMOUNTS REMAINING IN EXTENDED BENEFIT ACCOUNTS 
 WHEN A STATE IS NO LONGER IN AN EXTENDED BENEFIT PERIOD.

 

Section 203

    (b) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note), as amended by 

section 102

    (b)

    (2) , is amended by adding at the end the following new paragraph:
 ``

    (4) In the case of an individual who has amounts remaining in an 
account established under 

section 202

    (b) as of the date that extended 
benefits would otherwise not be payable to the individual because there 
is a State `off' indicator, extended compensation shall continue to be 
payable to such individual from such amounts for any week--
 ``
        (A) that begins on or after such date and ends on or 
 before 6 months after such date; and
 ``
        (B) for which the individual meets the eligibility 
 requirements under this title.''.

SEC. 106. COORDINATION OF EXTENDED BENEFITS WITH REGULAR COMPENSATION.

 

Section 202 of the Federal-State Extended Unemployment Compensation 
Act of 1970 (26 U.S.C. 3304 note) is amended by adding at the end the 
following new subsection:
 ``
            (d) Coordination of Extended Compensation With Regular 
Compensation.--
 ``

    (1) If--
 ``
        (A) an individual has been determined to be 
 entitled to extended compensation with respect to a 
 benefit year;
 ``
        (B) such benefit year has expired;
 ``
            (C) such individual has remaining entitlement to 
 extended compensation with respect to such benefit 
 year; and
 ``
            (D) such individual would qualify for a new 
 benefit year in which the weekly benefit amount of 
 regular compensation is at least $25 less than the 
 individual's weekly benefit amount in the benefit year 
 referred to in subparagraph
        (A) ;
 then the State shall determine eligibility for compensation as 
 provided in paragraph

    (2) .
 ``

    (2) For individuals described in paragraph

    (1) , the State 
 shall determine whether the individual is to be paid extended 
 compensation or regular compensation for a week of unemployment 
 using one of the following methods:
 ``
        (A) The State shall, if permitted by State law, 
 establish a new benefit year, but defer the payment of 
 regular compensation with respect to that new benefit 
 year until exhaustion of all extended compensation 
 payable with respect to the benefit year referred to in 
 paragraph

    (1)
        (A) .
 ``
        (B) The State shall, if permitted by State law, 
 defer the establishment of a new benefit year (which 
 uses all the wages and employment which would have been 
 used to establish a benefit year but for the 
 application of this paragraph) until exhaustion of all 
 extended compensation payable with respect to the 
 benefit year referred to in paragraph

    (1)
        (A) .
 ``
            (C) The State shall pay, if permitted by State 
 law--
 ``
            (i) regular compensation equal to the 
 weekly benefit amount established under the new 
 benefit year; and
 ``
            (ii) extended compensation equal to the 
 difference between that weekly benefit amount 
 and the weekly benefit amount for the expired 
 benefit year.
 ``
            (D) The State shall determine rights to extended 
 compensation without regard to any rights to regular 
 compensation if the individual elects to not file a 
 claim for regular compensation under the new benefit 
 year.''.

SEC. 107. PORTABILITY OF EXTENDED BENEFITS.

 

Section 202

    (a) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by adding at 
the end the following new paragraph:
 ``

    (8) The provisions under 

section 3304

    (a)

    (9)
        (A) of the Internal 
Revenue Code of 1986 shall apply to benefits under this title in the 
same manner as such provisions apply to regular compensation under 
State law.''.

SEC. 108. ADDITIONAL EXTENDED BENEFIT PROGRAM IMPROVEMENTS.

    (a) State Law Requirements.--

Section 202

    (a) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--

    (1) paragraph

    (3) --
        (A) in subparagraph
            (D) 
            (iii) , by striking 
 ``subparagraphs
            (C) and
        (E) '' and inserting 
 ``subparagraph
            (C) ''; and
        (B) by striking subparagraph
        (E) and redesignating 
 subparagraph
        (F) as subparagraph
        (E) ;

    (2) by striking paragraphs

    (4) ,

    (5) , and

    (7) and 
 redesignating paragraph

    (6) as paragraph

    (4) ; and

    (3) in paragraph

    (4) , as so redesignated, by striking 
 ``paragraphs

    (3) ,

    (4) , and

    (5) '' and inserting ``paragraph

    (3) ''.

    (b) Elimination of Mandatory 13-Week Off Period.--

Section 203

    (b)

    (1) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 
U.S.C. 3304 note) is amended by striking ``any State'' and all that 
follows before the period at the end and inserting ``any State, no 
extended benefit period shall last for a period of less than thirteen 
consecutive weeks''.
            (c) Elimination of Look Back Under the Insured Unemployment Rate 
Trigger.--

Section 203
            (d) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--

    (1) in paragraph

    (1) , by striking ``twelve weeks--'' and 
 all that follows through ``5 per centum'' and inserting 
 ``twelve weeks equal or exceeded 5 percent'';

    (2) in paragraph

    (2) , by striking ``either subparagraph
        (A) or subparagraph
        (B) of''; and

    (3) by striking the second and third sentences.
            (d) Determination of Insured Unemployment Rate.--

Section 203

    (e)

    (1)
        (A) of the Federal-State Extended Unemployment Compensation 
Act of 1970 (26 U.S.C. 3304 note) is amended by inserting ``, extended 
compensation, unemployment compensation for Federal civilian employees 
under subchapter I of chapter 85 of title 5, United States Code, or 
unemployment compensation for ex-servicemembers under subchapter II of 
such chapter 85'' after ``regular compensation''.

SEC. 109. EXEMPTION OF EXTENDED BENEFITS FROM SEQUESTRATION.

    (a) In General.--

Section 255

    (g)

    (1)
        (A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 905

    (g)

    (1)
        (A) ) is 
amended by inserting after ``Payments to Social Security Trust Funds 
(28-0404-0-1-651).'' the following:
 ``Payments to a State under the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).''.

    (b) Applicability.--The amendment made by this section shall apply 
to any sequestration order issued under the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) on or 
after the date of enactment of this Act.

SEC. 110. EFFECTIVE DATE.

 The amendments made by this title (other than sections 104 and 109) 
shall apply to weeks of unemployment beginning on or after January 1, 
2027 (or earlier if established by State law (but in no case earlier 
than 60 days after the date of enactment of this Act)).

 TITLE II--MODERNIZATION OF REGULAR UNEMPLOYMENT

SEC. 201. FLOOR ON THE NUMBER OF WEEKS.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986 is amended--

    (1) in paragraph

    (18) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (19) as paragraph

    (20) ; and

    (3) by inserting after paragraph

    (18) the following new 
 paragraph:
 ``

    (19) the minimum duration of benefits is at least 26 
 weeks and no variable duration formula that provides for 
 maximum weeks of benefits of fewer than 26 weeks is used, or, 
 in the case of a State that uses a maximum benefit entitlement, 
 an individual's maximum benefit entitlement may not be less 
 than 26 times the individual's weekly benefit amount; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 202. FLOOR ON THE MINIMUM REPLACEMENT OF WAGES.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (19) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (20) as paragraph

    (21) ; and

    (3) by inserting after paragraph

    (19) the following new 
 paragraph:
 ``

    (20) an individual's weekly benefit amount is equal to 
 the lesser of--
 ``
        (A) the maximum weekly benefit amount under the 
 State law; or
 ``
        (B) an amount equal to the quotient of--
 ``
            (i) an amount equal to at least 75 
 percent of the total earnings in the quarter of 
 the individual's base period with the highest 
 earnings; divided by
 ``
            (ii) 13; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 203. FLOOR ON THE MAXIMUM BENEFIT.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (20) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (21) as paragraph

    (22) ; and

    (3) by inserting after paragraph

    (20) the following new 
 paragraph:
 ``

    (21) the maximum weekly benefit amount may not be less 
 than \2/3\ of the State's average weekly wage (as determined by 
 the Secretary of Labor) as of October 1 of each calendar year 
 and applied for claims effective on or after January 1 of the 
 subsequent calendar year; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 204. PART-TIME WORK.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (21) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (22) as paragraph

    (25) ; and

    (3) by inserting after paragraph

    (21) the following new 
 paragraphs:
 ``

    (22) an individual is not denied unemployment 
 compensation under any State law provisions relating to ability 
 to work, availability for work, active search for work, or 
 refusal to accept work, solely on the basis of the number of 
 hours of work such individual is seeking, provided that the 
 individual is seeking at least the lesser of--
 ``
        (A) 20 hours of work per week; or
 ``
        (B) a number of hours of work per week equal to 
 at least \1/2\ of the typical number of hours worked 
 per week in the individual's base period;
 ``

    (23) an unemployed individual may claim benefits for a 
 week of partial unemployment where the individual performs less 
 than full-time work while continuing to search for additional 
 part-time or full-time work in accordance with State law if 
 their earnings are less than the individual's weekly benefit 
 amount;
 ``

    (24) when determining the weekly benefit amount for an 
 individual claiming a benefit for a week of partial 
 unemployment, the State disregards, at a minimum, earnings 
 equal to \1/3\ of the individual's weekly benefit amount in 
 computing the individual's weekly benefit for partial 
 unemployment; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 205. BASE PERIOD.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (24) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (25) as paragraph

    (27) ; and

    (3) by inserting after paragraph

    (24) the following new 
 paragraphs:
 ``

    (25) the State law--
 ``
        (A) uses a base period that consists of 4 
 completed calendar quarters preceding the effective 
 date of the claim and includes the most recently 
 completed calendar quarter before the start of the 
 benefit year for purposes of determining eligibility 
 for unemployment compensation; or
 ``
        (B) provides that, in the case of an individual 
 who would not otherwise be eligible for unemployment 
 compensation under the State law because of the use of 
 a base period that does not meet the requirements 
 described in subparagraph
        (A) , eligibility is 
 determined using a base period that consists of 4 
 completed calendar quarters preceding the effective 
 date of the claim and includes the most recently 
 completed calendar quarter before the start of the 
 benefit year;
 ``

    (26) in the case of an individual who would not otherwise 
 be eligible for unemployment compensation under State law 
 because the individual took unpaid leave or reduced pay for 
 medical, parental, or caregiving purposes during the base 
 period, or because the individual was incapable of work due to 
 illness, injury, or disability during the base period, 
 eligibility shall be determined using a base period that 
 includes the State's standard or alternative base period and at 
 least 4 additional consecutive quarters immediately before the 
 base period or alternative base period; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to claims with an effective date beginning on or after the 
earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 206. EXPANSION OF GOOD CAUSE SEPARATIONS.

    (a) In General.--

Section 3304 of the Internal Revenue Code of 1986, 
as previously amended by this title, is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (26) , by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (27) as paragraph

    (28) ; and
            (C) by inserting after paragraph

    (26) the following 
 new paragraph:
 ``

    (27) an individual shall not be disqualified from 
 unemployment compensation for separating from employment if 
 that separation is for any compelling reason (as defined in 
 subsection

    (g) ); and''; and

    (2) by adding at the end the following new subsection:
 ``

    (g) Definition of Compelling Reason.--
 ``

    (1) In general.--For purposes of subsection

    (a)

    (27) , the 
 Secretary of Labor shall establish a definition for the term 
 `compelling reason'.
 ``

    (2) Requirements.--In defining the term compelling 
 reason, the Secretary shall include the following reasons:
 ``
        (A) Illness or disability of a qualified family 
 member.--
 ``
            (i) In general.--The illness or 
 disability of a qualified family member of the 
 individual.
 ``
            (ii) Qualified family member.--For 
 purposes of clause
            (i) , the term `qualified 
 family member' means, with respect to an 
 individual--
 ``
            (I) a spouse (including a 
 domestic partner in a civil union or 
 other registered domestic partnership 
 recognized by a State) and a spouse's 
 parent;
 ``
            (II) a child and a child's 
 spouse;
 ``
            (III) a parent and a parent's 
 spouse;
 ``
            (IV) a sibling and a sibling's 
 spouse;
 ``
            (V) a grandparent, a grandchild, 
 or a spouse of a grandparent or 
 grandchild; and
 ``
            (VI) any other individual who is 
 related by blood or affinity and whose 
 association with the individual is the 
 equivalent of a family relationship (as 
 determined under regulations issued by 
 the Secretary of the Labor).
 ``
        (B) Accompany the individual's spouse.--In order 
 to accompany such individual's spouse--
 ``
            (i) to a place which is outside of the 
 individual's commuting area; and
 ``
            (ii) due to a change in location of the 
 spouse's employment.
 ``
            (C) Relocation of workplace.--The relocation of 
 the workplace of the individual to a place which is 
 outside of the individual's commuting area.
 ``
            (D) Care for a child.--The need to care for a 
 child when child care has been lost and an alternative 
 arrangement cannot be reasonably secured.
 ``
        (E) Unusual risk.--The individual's job presents 
 any unusual risk to the health or safety of the 
 individual.
 ``
        (F) Employer's failure to conform to state and 
 federal laws.--The employee's reasonable belief that 
 the employer failed to conform to any State or Federal 
 law relating to wages, hours, working conditions, 
 collective bargaining, harassment, discrimination, 
 retaliation, or reasonable accommodations.
 ``
        (G) Other reasons.--Other reasons determined 
 appropriate by the State.''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 207. UNEMPLOYMENT COMPENSATION FOR VICTIMS OF A QUALIFYING ACT OF 
 VIOLENCE OR HARASSMENT.

    (a) In General.--

Section 3304 of the Internal Revenue Code of 1986, 
as previously amended by this title, is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (27) , by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (28) as paragraph

    (29) ; and
            (C) by inserting after paragraph

    (27) the following 
 new paragraph:
 ``

    (28) an individual shall not be denied compensation under 
 such State law solely on the basis of the individual having a 
 voluntary separation from work if such separation is 
 attributable to such individual being a victim of a qualifying 
 act of violence or harassment; and''; and

    (2) by adding at the end the following new subsection
 ``

    (h) Victims of a Qualifying Act of Violence or Harassment.--
 ``

    (1) Documentation.--For purposes of subsection

    (a)

    (28) , a 
 voluntary separation of an individual shall be considered to be 
 attributable to such individual being a victim of a qualifying 
 act of violence or harassment if such individual submits such 
 evidence as the State deems sufficient.
 ``

    (2) Sufficient documentation.--For purposes of paragraph

    (1) , a State shall deem sufficient--
 ``
        (A) evidence of such qualifying act of violence 
 or harassment in the form of--
 ``
            (i) a sworn statement and a form of 
 identification;
 ``
            (ii) a police or court record;
 ``
            (iii) documentation from a professional 
 from whom such individual has sought 
 assistance, including those associated with 
 medical, legal, or religious professions or a 
 victim service provider; or
 ``
            (iv) any other documentation determined 
 appropriate by the Secretary of Labor or the 
 State; and
 ``
        (B) an attestation that such voluntary separation 
 is attributable to such qualifying act of violence or 
 harassment.
 ``

    (3) === Definitions. ===
-
 ``
        (A) In general.--Subject to subparagraph
        (B) , in 
 this section:
 ``
            (i) Qualifying act of violence or 
 harassment.--The term `qualifying act of 
 violence or harassment' means an act, conduct, 
 or pattern of conduct that is or could 
 constitute any of the following:
 ``
            (I) Domestic violence.
 ``
            (II) Dating violence.
 ``
            (III) Sexual assault.
 ``
            (IV) Stalking.
 ``
            (V) Sexual harassment.
 ``
            (VI) Other harassment.
 ``
            (ii) Victim of a qualifying act of 
 violence or harassment.--The term ``victim of a 
 qualifying act of violence or harassment 
 includes--
 ``
            (I) an individual who has 
 experienced or is experiencing a 
 qualifying act of violence or 
 harassment; and
 ``
            (II) an individual whose family 
 or household member has experienced or 
 is experiencing a qualifying act of 
 violence or harassment.
 ``
            (iii) Violence against women act 
 

=== definitions. ===
-The terms `domestic violence', 
 `dating violence', `sexual assault', 
 `stalking', and `victim service provider' have 
 the meanings given such terms in 

section 40002 
 of the Violence Against Women Act of 1994, 
 except that if the corresponding paragraph for 
 any such term is amended after the date of 
 enactment of this subsection, such amendment 
 shall not apply for the purpose of this 
 subsection until the earlier of--
 ``
            (I) the date the State changes 
 its statutes, regulations, or policies 
 in order to comply with such amendment; 
 or
 ``
            (II) the date that is 2 years 
 after the date of enactment of such 
 amendment.
 ``
            (iv) Sexual harassment.--The term `sexual 
 harassment' means hostile, intimidating, or 
 oppressive behavior based on sex that creates 
 an offensive work environment.
 ``
            (v) Other harassment.--The term `other 
 harassment' has the meaning given the term 
 `harassment' (other than sexual harassment) 
 under State law, regulation, or policy.
 ``
        (B) States may apply broader 

=== definition. ===
-A State 
 may adopt a broader definition of any term under clause
            (i) ,
            (ii) 
            (iii) ,
            (iv) , or
            (v) of subparagraph
        (A) .''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 208. ELIMINATION OF WAITING WEEKS.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (28) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (29) as paragraph

    (30) ; and

    (3) by inserting after paragraph

    (28) the following new 
 paragraph:
 ``

    (29) compensation is immediately paid to an individual 
 for their first week of otherwise compensable unemployment 
 without a waiting week; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 209. TEMPORARY WORK ASSIGNMENT.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (29) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (30) as paragraph

    (31) ; and

    (3) by inserting after paragraph

    (29) the following new 
 paragraph:
 ``

    (30) an individual's completion of a temporary employment 
 assignment is considered to be an involuntary layoff for the 
 purposes of determining eligibility for unemployment 
 compensation, regardless of whether or not the individual has 
 contacted the employer after a temporary assignment has ended; 
 and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 210. SELF-EMPLOYMENT ASSISTANCE PROGRAM.

    (a) Requirement.--

    (1) In general.--

Section 3304

    (a) of the Internal Revenue 
 Code of 1986, as previously amended by this title, is amended--
        (A) in paragraph

    (4)
        (F) , by inserting ``, as 
 required under paragraph

    (31) '' after ``3306

    (t) )'';
        (B) in paragraph

    (30) , by striking ``and'' at the 
 end;
            (C) by redesignating paragraph

    (31) as paragraph

    (32) ; and
            (D) by inserting after paragraph

    (30) the following 
 new paragraph:
 ``

    (31) payment of allowances is made under a self-
 employment assistance program (as defined in 

section 3306

    (t) ) 
 under the State law; and''.

    (2) Conforming amendment.--

Section 303

    (a)

    (5) of the Social 
 Security Act (42 U.S.C. 503

    (a)

    (5) ), is amended, in the last 
 proviso, by inserting ``, as required under 

section 3304

    (a)

    (31) of such Code'' after ``1986)''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 211. SHORT-TIME COMPENSATION PROGRAM.

    (a) Required Program.--

    (1) In general.--

Section 3304

    (a) of the Internal Revenue 
 Code of 1986, as previously amended by this title, is amended--
        (A) in paragraph

    (4)
        (E) , by inserting ``, as 
 required under paragraph

    (32) '' after ``3306
            (v) )'';
        (B) in paragraph

    (31) , by striking ``and'' at the 
 end;
            (C) by redesignating paragraph

    (32) as paragraph

    (33) ; and
            (D) by inserting after paragraph

    (31) the following 
 new paragraph:
 ``

    (32) payment of short-time compensation is made under a 
 short-time compensation program (as defined in 

section 3306
            (v) ) 
 under the State law; and''.

    (2) Conforming amendment.--

Section 303

    (a)

    (5) of the Social 
 Security Act (42 U.S.C. 503

    (a)

    (5) ), is amended, in the fifth 
 proviso, by inserting ``, as required under 

section 3304

    (a)

    (32) of such Code'' after ``1986)''.

    (b) Revisions to Definition of a Short-Time Compensation Program.--

    (1) Flexibility.--
        (A) In general.--

Section 3306
            (v) (3) of the Internal 
 Revenue Code of 1986 is amended by striking ``60 
 percent'' and inserting ``80 percent''.
        (B) Effective date.--The amendment made by 
 subparagraph
        (A) shall take effect on the date of 
 enactment of this Act.

    (2) Permitting employers to file claim on behalf of 
 employees.--

Section 3306
            (v) of the Internal Revenue Code of 
 1986 is amended--
        (A) by redesignating paragraphs

    (8) ,

    (9) , and

    (10) as paragraphs

    (9) ,

    (10) , and

    (11) , respectively; and
        (B) by inserting after paragraph

    (7) the following 
 new paragraph:
 ``

    (8) the State agency allows an employer to file weekly 
 claims under the program on behalf of employees;''.
            (c) Effective Date.--The amendments made by this section (other 
than subsection

    (b)

    (1) ) shall apply to weeks of unemployment beginning 
on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 212. MINIMUM LEVEL OF PRIOR EMPLOYMENT.

    (a) Requirement.--

    (1) In general.--

Section 3304

    (a) of the Internal Revenue 
 Code of 1986, as previously amended by this title, is amended--
        (A) in paragraph

    (32) , by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (33) as paragraph

    (34) ; and
            (C) by inserting after paragraph

    (31) the following 
 new paragraph:
 ``

    (33) compensation is not denied to an otherwise eligible 
 individual if the individual earned at least $1,000 in covered 
 wages during the highest quarter of the base period and at 
 least $1,500 covered wages during the base period; and''.

    (2) State may reduce minimum thresholds.--Nothing in the 
 paragraph

    (33) of 

section 3304

    (a) of the Internal Revenue Code 
 of 1986, as added by paragraph

    (1) , shall preclude a State from 
 reducing the dollar thresholds described in such paragraph

    (32) .

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 213. EMPLOYEE STATUS.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this title, is amended--

    (1) in paragraph

    (33) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (34) as paragraph

    (35) ; and

    (3) by inserting after paragraph

    (33) the following new 
 paragraph:
 ``

    (34) an individual performing any service shall be 
 considered an employee and not an independent contractor for 
 the purpose of the State law, unless--
 ``
        (A) the individual is free from control and 
 direction in connection with the performance of the 
 service, both under the contract for the performance of 
 service and in fact;
 ``
        (B) the service is performed outside the usual 
 course of the business of the employer; and
 ``
            (C) the individual is customarily engaged in an 
 independently established trade, occupation, 
 profession, or business of the same nature as that 
 involved in the service performed; and''.

    (b) Effective Date.--The amendments made by subsection

    (a) shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 214. ELIGIBILITY OF CERTAIN STUDENT-WORKERS FOR UNEMPLOYMENT 
 COMPENSATION.

    (a) In General.--

Section 3306
            (c) (10) of the Internal Revenue Code 
of 1986 is amended--

    (1) by striking subparagraphs
        (B) and
            (C) ; and

    (2) by redesignating subparagraph
            (D) as subparagraph
        (B) .

    (b) Effective Date.--The amendment made by this section shall apply 
to service performed on or after January 1, 2027.

SEC. 215. DEPENDENTS' ALLOWANCE.

    (a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is 
amended--

    (1) in 

section 3304

    (a) , as previously amended by this Act--
        (A) in paragraph

    (34) , by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (35) as paragraph

    (36) ; and
            (C) by inserting after paragraph

    (34) the following 
 new paragraph:
 ``

    (35) payment of dependents' allowances shall be paid 
 pursuant to 

section 3304A; and''; and

    (2) by inserting after 

section 3304, the following new 
 section:

``

SEC. 3304A. DEPENDENTS' ALLOWANCE.

 ``

    (a) In General.--Subject to the succeeding provisions of this 
section, for purposes of 

section 3304

    (a)

    (35) , a State shall provide, in 
the case of any individual who is entitled to receive unemployment 
compensation and who has any dependents, a dependents' allowance in an 
amount equal to the amount specified in subsection

    (b) per dependent 
per week.
 ``

    (b) Amount Specified.--
 ``

    (1) In general.--The amount specified in this subsection 
 is an amount equal to--
 ``
        (A) for 2027, $25; and
 ``
        (B) for 2028 or a subsequent year, the dollar 
 amount specified in this subsection for the preceding 
 year increased by the percentage change in the Consumer 
 Price Index for All Urban Consumers for the 12-month 
 period ending with June of such preceding year.
 ``

    (2) Rounding.--If any amount determined under paragraph

    (1)
        (B) is not a multiple of $1, such amount shall be rounded to 
 the nearest multiple of $1.
 ``
            (c) Dependent Defined.--In this section, the term `dependent' 
shall have the meaning given that term under State law, except that 
such term shall include--
 ``

    (1) any child in the care of the individual who is under 
 the age of 18, including a natural child, an adopted child, and 
 a step-child;
 ``

    (2) any child, including stepchild, natural child, or 
 adopted child, who, prior to enrollment as full-time student, 
 was in the care of the individual seeking benefits, so long as 
 the child remain enrolled as a full-time student and is under 
 the age of 24;
 ``

    (3) any eligible foster child (as defined in 

section 152

    (f)

    (1)
            (C) ) placed with the individual;
 ``

    (4) an immediate family member with a disability who is 
 in the care of the individual or their household, regardless of 
 whether or not the family member resides in the individual's 
 household;
 ``

    (5) a nonworking senior family member living in the 
 household of the individual;
 ``

    (6) a nonworking spouse who is not receiving unemployment 
 compensation; and
 ``

    (7) other individuals determined appropriate by the 
 Secretary of Labor.
 ``
            (d) Regulations.--Not later than 3 months after the date of 
enactment of this section, the Secretary of Labor shall issue 
regulations to carry out this section.''.

    (b) Permissible Use of Funds.--

    (1) Internal revenue code of 1986.--

Section 3304

    (a)

    (4) of 
 the Internal Revenue Code of 1986 is amended--
        (A) in subparagraph
        (F) , by striking ``and'' at the 
 end;
        (B) in subparagraph
        (G)
            (ii) , by inserting ``and'' 
 at the end; and
            (C) by adding at the end the following:
 ``
        (H) amounts may be withdrawn for the payment of 
 dependents' allowances under 

section 3304A;''.

    (2) Social security act.--

Section 303

    (a)

    (5) of the Social 
 Security Act is amended by striking ``; and'' at the end and 
 inserting ``: Provided further, That amounts may be withdrawn 
 for the payment of dependents' allowances under 

section 3304A; 
 and''.
            (c) Conforming Amendment.--The table of sections for chapter 23 of 
the Internal Revenue Code of 1986 is amended inserting after the item 
relating to 

section 3304 the following new item:

``

Sec. 3304A. Dependents' allowance.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 216. LABOR DISPUTES.

    (a) In General.--

Section 3304

    (a) of the Internal Revenue Code of 
1986, as previously amended by this Act, is amended--

    (1) in paragraph

    (35) , by striking ``and'' at the end;

    (2) by redesignating paragraph

    (36) as paragraph

    (37) ; and

    (3) by inserting after paragraph

    (35) the following new 
 paragraph:
 ``

    (36) compensation is not denied to an otherwise eligible 
 individual if the separation is due to a labor dispute if--
 ``
        (A) the individual has been locked out by their 
 employer;
 ``
        (B) the dispute is the result of the employer's 
 failure to conform to the provisions of a labor 
 contract;
 ``
            (C) the dispute is the result of the employer's 
 failure to conform to any State or Federal law relating 
 to wages, hours, working conditions, or collective 
 bargaining; or
 ``
            (D) the individual and others of the same grade 
 or class are not participating in the dispute, 
 financing it, or directly interested in it; and''.

    (b) Effective Date.--The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 217. EDUCATIONAL EMPLOYEES.

    (a) In General.--

Section 3304

    (a)

    (6)
        (A)
            (i) of the Internal Revenue 
Code of 1986 is amended--

    (1) by striking ``applies, compensation shall'' and 
 inserting the following: ``applies--
 ``
            (I) compensation shall'';

    (2) in subclause
            (I) , as added by paragraph

    (1) , by 
 inserting ``except that'' at the end; and

    (3) by adding at the end the following new subclause:
 ``
            (II) if compensation is denied to any 
 individual for any week under subclause
            (I) and 
 such individual was not offered an opportunity 
 to perform such services for the educational 
 institution for the second of such academic 
 years or terms, such individual shall be 
 entitled to a retroactive payment of the 
 compensation for each week for which the 
 individual filed a timely claim for 
 compensation and for which compensation was 
 denied solely by reason of subclause
            (I) ,''.

    (b) Effective Date.--The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

SEC. 218. EMERGENCY ENHANCED UNEMPLOYMENT COMPENSATION.

    (a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is 
amended--

    (1) in 

section 3304

    (a) , as previously amended by this Act--
        (A) in paragraph

    (20) , in the matter preceding 
 clause
            (i) , by inserting ``, subject to paragraph

    (37) and 

section 3304B,'' after ``benefit amount is'';
        (B) in paragraph

    (36) , by striking ``and'' at the 
 end;
            (C) by redesignating paragraph

    (37) as paragraph

    (38) ; and
            (D) by inserting after paragraph

    (36) the following 
 new paragraph:
 ``

    (37) payment of emergency enhanced unemployment 
 compensation shall be paid pursuant to 

section 3304B; and''; 
 and

    (2) by inserting after 

section 3304A, as added by 

section 215, the following new section:

``

SEC. 3304B. EMERGENCY ENHANCED UNEMPLOYMENT COMPENSATION.

 ``

    (a) Compensation.--
 ``

    (1) In general.--Subject to the succeeding provisions of 
 this section, for purposes of 

section 3304

    (a)

    (37) , during an 
 emergency period with respect to a State, 

section 3304

    (a)

    (20)
        (B)
            (i) shall be applied with respect to the State by 
 substituting `100 percent' for `at least 75 percent'. The 
 additional amount an individual receives pursuant to the 
 application of the preceding sentence shall be referred to as 
 `emergency enhanced unemployment compensation'.
 ``

    (2) Emergency period.--For purposes of paragraph

    (1) , the 
 term `emergency period' means, with respect to a State, any 
 period during which--
 ``
        (A) a public health emergency has been declared 
 under 

section 319 of the Public Health Service Act with 
 respect to the State (including a nationwide 
 emergency); or
 ``
        (B) a major disaster or emergency has been 
 declared by the President under 

section 401 or 501, 
 respectively, of the Robert T. Stafford Disaster Relief 
 and Emergency Assistance Act (42 U.S.C. 5170, 5191).
 ``

    (b) Payments to States.--
 ``

    (1) In general.--
 ``
        (A) Full reimbursement.--There shall be paid to 
 each State an amount equal to 100 percent of--
 ``
            (i) the total amount of emergency 
 enhanced unemployment compensation paid to 
 individuals by the State pursuant to this 
 section; and
 ``
            (ii) any additional administrative 
 expenses incurred by the State by reason of 
 making such payments (as determined by the 
 Secretary of Labor).
 ``
        (B) Terms of payments.--Sums payable to any State 
 under this section shall be payable, either in advance 
 or by way of reimbursement (as determined by the 
 Secretary of Labor), in such amounts as the Secretary 
 of Labor estimates the State will be entitled to 
 receive under this section for each calendar month, 
 reduced or increased, as the case may be, by any amount 
 by which the Secretary of Labor finds that the 
 Secretary's estimates for any prior calendar month were 
 greater or less than the amounts that should have been 
 paid to the State. Such estimates may be made on the 
 basis of such statistical, sampling, or other method as 
 may be agreed upon by the Secretary of Labor and the 
 State agency of the State involved.
 ``

    (2) Certifications.--The Secretary of Labor shall from 
 time to time certify to the Secretary of the Treasury for 
 payment to each State the sums payable to such State under this 
 section.
 ``

    (3) Deposit.--Sums payable to any State under this 
 section shall be deposited in the account of such State in the 
 Unemployment Trust Fund. Amounts deposited under preceding 
 sentence may only be used by the State for the payment of 
 emergency enhanced unemployment compensation under this 
 section.
 ``

    (4) Funding.--There are appropriated from the general 
 fund of the Treasury, without fiscal year limitation, such sums 
 as may be necessary for purposes of this section.
 ``
            (c) Fraud and Overpayments.--
 ``

    (1) In general.--If an individual knowingly has made, or 
 caused to be made by another, a false statement or 
 representation of a material fact, or knowingly has failed, or 
 caused another to fail, to disclose a material fact, and as a 
 result of such false statement or representation or of such 
 nondisclosure such individual has received an amount of 
 emergency enhanced unemployment compensation to which such 
 individual was not entitled, such individual--
 ``
        (A) shall be ineligible for further emergency 
 enhanced unemployment compensation in accordance with 
 the provisions of the applicable State unemployment 
 compensation law relating to fraud in connection with a 
 claim for unemployment compensation; and
 ``
        (B) shall be subject to prosecution under 

section 1001 of title 18, United States Code.
 ``

    (2) Repayment.--In the case of individuals who have 
 received amounts of emergency enhanced unemployment 
 compensation to which they were not entitled, the State shall 
 require such individuals to repay the amounts of such emergency 
 enhanced unemployment compensation to the State agency, except 
 that the State agency shall waive such repayment if it 
 determines that--
 ``
        (A) the payment of such emergency enhanced 
 unemployment compensation was not based on fraud on the 
 part of any such individual; and
 ``
        (B) such repayment would be contrary to equity 
 and good conscience.
 ``

    (3) Recovery by state agency.--
 ``
        (A) In general.--The State agency may recover the 
 amount to be repaid, or any part thereof, by deductions 
 from any emergency enhanced unemployment compensation 
 payable to such individual or from any unemployment 
 compensation payable to such individual under any State 
 or Federal unemployment compensation law administered 
 by the State agency or under any other State or Federal 
 law administered by the State agency which provides for 
 the payment of any assistance or allowance with respect 
 to any week of unemployment, during the 3-year period 
 after the date such individual received the payment of 
 the emergency enhanced unemployment compensation to 
 which they were not entitled, in accordance with the 
 same procedures as apply to the recovery of 
 overpayments of regular unemployment benefits paid by 
 the State.
 ``
        (B) Opportunity for hearing.--No repayment shall 
 be required, and no deduction shall be made, until a 
 determination has been made, notice thereof and an 
 opportunity for a fair hearing has been given to the 
 individual, and the determination has become final.
 ``

    (4) Review.--Any determination by a State agency under 
 this section shall be subject to review in the same manner and 
 to the same extent as determinations under the State 
 unemployment compensation law, and only in that manner and to 
 that extent.
 ``

    (5) Deposit in state unemployment fund.--Any amount 
 recovered by a State agency pursuant to this section shall be 
 deposited in the account of such State in the Unemployment 
 Trust Fund. Amounts deposited under preceding sentence may only 
 be used by the State for the payment of emergency enhanced 
 unemployment compensation under this section.
 ``
            (d) Payment To Be Disregarded for Purposes of All Federal and 
Federally Assisted Programs.--A emergency enhanced unemployment 
compensation payment shall not be regarded as income and shall not be 
regarded as a resource for the month of receipt and the following 12 
months, for purposes of determining the eligibility of the recipient 
(or the recipient's spouse or family) for benefits or assistance, or 
the amount or extent of benefits or assistance, under any Federal 
program or under any State or local program financed in whole or in 
part with Federal funds.
 ``

    (e) Regulations.--Not later than 3 months after the date of 
enactment of this section, the Secretary of Labor shall issue 
regulations to carry out this section.''.

    (b) Conforming Amendment.--The table of sections for chapter 23 of 
the Internal Revenue Code of 1986, as amended by 

section 215, is 
amended inserting after the item relating to 

section 3304A the 
following new item:

``

Sec. 3304B. Emergency enhanced unemployment compensation.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.

 TITLE III--JOBSEEKER ALLOWANCE

SEC. 301. JOBSEEKER ALLOWANCE.

    (a) In General.--Chapter 23 of the Internal Revenue Code of 1986 is 
amended--

    (1) in 

section 3304

    (a) , as previously amended by this Act--
        (A) in paragraph

    (37) , by striking ``and'' at the 
 end;
        (B) by redesignating paragraph

    (38) as paragraph

    (39) ; and
            (C) by inserting after paragraph

    (37) the following 
 new paragraph:
 ``

    (38) payment of jobseeker allowances shall be paid 
 pursuant to 

section 3304C; and''; and

    (2) by inserting after 

section 3304B, as added by 

section 218, the following new section:

``

SEC. 3304C. JOBSEEKER ALLOWANCE.

 ``

    (a) Allowance.--
 ``

    (1) In general.--Subject to the succeeding provisions of 
 this section, for purposes of 

section 3304

    (a)

    (38) , a State 
 shall provide for a weekly jobseeker allowance to any eligible 
 individual in accordance with standards established by the 
 Secretary of Labor.
 ``

    (2) Eligible individual.--In this section, the term 
 `eligible individual' means an individual who, for any week--
 ``
        (A) is unemployed or partially employed, 
 including self-employment;
 ``
        (B) is--
 ``
            (i) subject to paragraph

    (4) , able to 
 work and available to work; and
 ``
            (ii) subject to paragraph

    (5) , actively 
 seeking work;
 ``
            (C) 
            (i) is at least 19 years of age (or at least 
 18 years of age in the case of an individual in foster 
 care under the responsibility of the State); or
 ``
            (ii) has earned a high school diploma or its 
 recognized equivalent; and
 ``
            (D) subject to paragraph

    (3) , has an adjusted 
 gross income for the most recently completed tax year 
 that does not exceed the contribution and benefit base 
 as determined under 

section 230 of the Social Security 
 Act.
 ``

    (3) Exception to agi limitation.--The requirement under 
 paragraph

    (2)
            (D) shall not apply to an individual in a 
 household if, in the past 6 months--
 ``
        (A) another member of such household has been 
 separated from employment;
 ``
        (B) the individual has become separated or 
 divorced from their spouse; or
 ``
            (C) another member of the individual's household 
 has died.
 ``

    (4) Able to work and available to work.--
 ``
        (A) In general.--For purposes of paragraph

    (2)
        (B)
            (i) , subject to subparagraph
        (B) , an individual 
 shall be considered to be able to work and available to 
 work as long as any limit on the individual's ability 
 to work or availability to work does not constitute a 
 withdrawal from the labor market. For purposes of the 
 preceding sentence, an individual shall not be 
 considered to have withdrawn from the labor market if 
 the individual is able to work and available to work 
 for 8 or more hours per week.
 ``
        (B) Exceptions.--A jobseeker allowance shall not 
 be denied to an otherwise eligible individual for any 
 week during which the individual is not able to work 
 and available for work because the individual--
 ``
            (i) is not available for work outside of 
 the locality of the individual's residence;
 ``
            (ii) is not available for work during 
 hours when they are the primary caregiver for a 
 child or dependent;
 ``
            (iii) is attending a training course with 
 the approval of the State agency in compliance 
 with any regulations issued by the Secretary of 
 Labor;
 ``
            (iv) is appearing for jury duty before 
 any court under a lawfully issued summons;
 ``
            (v) has been temporarily laid off and is 
 available to work only for the employer that 
 has temporarily laid off the individual; or
 ``
            (vi) is temporarily ill or injured.
 ``

    (5) Actively seeking work.--
 ``
        (A) In general.--For purposes of paragraph

    (2)
        (B)
            (ii) , subject to subparagraphs
        (B) and
            (C) , an 
 individual shall be considered to be actively seeking 
 work if the individual--
 ``
            (i) engages in an active search for 
 employment that is appropriate in light of the 
 employment available in the labor market and 
 the individual's skills and capabilities, 
 including a number of employer contacts that is 
 consistent with the standards developed by the 
 Secretary of Labor and communicated to the 
 individual;
 ``
            (ii) maintains a record of such work 
 search, including employers contacted, method 
 of contact, and date contacted;
 ``
            (iii) when requested, provides such 
 record to the State agency; and
 ``
            (iv) is registered for employment 
 services in such a manner and to such extent as 
 prescribed by the Secretary of Labor.
 ``
        (B) Special rule for self-employment.--In the 
 case of an individual with a work history that includes 
 self-employment, the individual may be considered 
 actively seeking work if the individual--
 ``
            (i) is engaged in activities (which may 
 include State-approved entrepreneurial 
 training, business counseling, and technical 
 assistance) relating to resuming self-
 employment that meet requirements established 
 by the Secretary of Labor;
 ``
            (ii) maintains a record of such 
 activities; and
 ``
            (iii) when requested, provides such 
 record to the State agency.
 ``
            (C) Exceptions.--A jobseeker allowance shall not 
 be denied to an otherwise eligible individual for any 
 week during which the individual is not actively 
 seeking work because the individual--
 ``
            (i) is attending a training course with 
 the approval of the State agency and the 
 Secretary of Labor;
 ``
            (ii) has been temporarily laid off with a 
 reasonable expectation the individual will 
 return to work soon;
 ``
            (iii) has a specified start date for new 
 employment;
 ``
            (iv) is appearing for jury duty before 
 any court under a lawfully issued summons; or
 ``
            (v) has a compelling reason (as defined 
 in 

section 3304

    (g) ) or is a victim of a 
 qualifying act of violence or harassment (as 
 determined pursuant to 

section 3304

    (h) ).
 ``

    (6) May not refuse offer of suitable work.--
 ``
        (A) In general.--Subject to subparagraphs
        (B) and
            (C) , an individual shall not be eligible for a 
 jobseeker allowance if the individual refuses an offer 
 of suitable work.
 ``
        (B) Nonsuitable work.--Work shall not be 
 considered suitable work for an individual if the 
 work--
 ``
            (i) poses an unreasonable risk to the 
 individual's health, safety, or morals;
 ``
            (ii) is not within the individual's 
 experience, training, or physical capability to 
 perform;
 ``
            (iii) is outside of the locality of the 
 individual's residence or is an unreasonable 
 distance from such residence; or
 ``
            (iv) meets other criteria established by 
 the Secretary of Labor.
 ``
            (C) Exceptions.--A jobseeker allowance shall not 
 be denied to an otherwise eligible individual for any 
 week for refusing an offer of suitable work if--
 ``
            (i) the position offered is vacant due 
 directly to a strike, lockout, or other labor 
 dispute;
 ``
            (ii) the wages, hours, or other 
 conditions of the work offered are 
 substantially less favorable to the individual 
 than those prevailing for similar work in the 
 locality;
 ``
            (iii) the position pays wages less than 
 the higher of--
 ``
            (I) the minimum wage provided by 
 

section 6

    (a)

    (1) of the Fair Labor 
 Standards Act of 1938 (29 U.S.C. 
 206

    (a)

    (1) ), without regard to any 
 exemption;
 ``
            (II) any applicable State or 
 local minimum wage;
 ``
            (iv) if as a condition of being employed 
 the individual would be required to join a 
 company union or to resign from or refrain from 
 joining any bona fide labor organization;
 ``
            (v) the position was not offered to such 
 individual in writing; or
 ``
            (vi) the work meets other criteria 
 established by the Secretary.
 ``

    (b) Amount of Jobseeker Allowance.--
 ``

    (1) Amount.--
 ``
        (A) In general.--Subject to the succeeding 
 provisions of this subsection, the weekly amount of a 
 jobseeker allowance shall be an amount equal to--
 ``
            (i) for 2027, $250; and
 ``
            (ii) for 2028 or a subsequent year, the 
 dollar amount specified in this subparagraph 
 for the preceding year increased by the 
 percentage change in the Consumer Price Index 
 for All Urban Consumers for the 12-month period 
 ending with June of such preceding year.
 ``
        (B) Rounding.--If any amount determined under 
 subparagraph
        (A)
            (ii) is not a multiple of $1, such 
 amount shall be rounded to the nearest multiple of $1.
 ``

    (2) Reduced amount for individuals exclusively seeking 
 part-time work.--In the case of an eligible individual who is 
 available to work for less than 20 hours per week, the amount 
 of the jobseeker allowance for such individual for a week shall 
 be equal to 50 percent of the jobseeker allowance that would 
 otherwise apply under paragraph

    (1) for such week.
 ``

    (3) Reduced amount for individuals receiving unemployment 
 benefits.--In the case of an eligible individual who is 
 receiving unemployment compensation under any State of Federal 
 law for a week, the amount of the jobseeker allowance for such 
 individual for such week (determined after application of 
 paragraph

    (2) ) shall be reduced by the amount of such regular 
 compensation or extended compensation for such week.
 ``

    (4) Increased amount for certain individuals in states 
 with elevated unemployment.--
 ``
        (A) In general.--For weeks beginning in an 
 elevated unemployment period, in the case of an 
 eligible individual that meets the prior income 
 threshold described in subparagraph
            (C) , the amount of 
 the jobseeker allowance for such individual for the 
 week (determined after the application of paragraphs

    (2) and

    (3) ) shall be increased by an amount equal to--
 ``
            (i) the lesser of--
 ``
            (I) an amount equal to 1.4 
 percent of the amount of the 
 individual's earned income for the most 
 recently completed tax year (or the 
 immediately preceding tax year, if the 
 individual has not filed a return of 
 tax for the most recently completed tax 
 year); or
 ``
            (II) two-thirds of the State's 
 average weekly wage (as determined by 
 the Secretary of Labor); reduced by
 ``
            (ii) the amount of the jobseeker 
 allowance for such individual for such week 
 (determined after application of paragraphs

    (2) and

    (3) ); reduced by
 ``
            (iii) the amount of any reduction of the 
 jobseeker allowance for such individual for 
 such week pursuant to paragraph

    (3) .
 ``
        (B) Elevated unemployment period.--For purposes 
 of subparagraph
        (A) , the term `elevated unemployment 
 period' means any period during which an extended 
 benefit period would be in effect under subsection

    (f) or

    (g) of 

section 203 of the Federal-State Extended 
 Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
 note) if such subsection was applied by substituting 
 `7.5 percent' for `5.5 percent'.
 ``
            (C) Prior income threshold.--
 ``
            (i) In general.--For purposes of 
 subparagraph
        (A) , an eligible individual meets 
 the prior income threshold described in this 
 subparagraph for a week if--
 ``
            (I) the individual's earned 
 income for the most recently completed 
 tax year was equal to or greater than 
 $10,000; and
 ``
            (II) the individual provides such 
 documentation of prior earned income as 
 the Secretary determines appropriate, 
 such as, but not limited to, tax 
 returns, Form W-2s, Form 1099s, and pay 
 stubs.
 ``
            (ii) Inflation adjustment.--
 ``
            (I) In general.--In the case of 
 any taxable year beginning in a 
 calendar year after 2027, the dollar 
 amount in clause
            (i) 
            (I) shall be 
 increased by an amount equal to--
 ``

    (aa) such dollar amount; 
 multiplied by
 ``

    (bb) the cost-of-living 
 adjustment determined under 
 

section 1

    (f)

    (3) for the 
 calendar year in which the 
 taxable year begins, determined 
 by substituting `calendar year 
 2026' for `calendar year 2016' 
 in subparagraph
        (A)
            (ii) thereof.
 ``
            (II) Rounding.--Any increase 
 determined under subclause
            (I) shall be 
 rounded to the nearest multiple of $100 
 in the case of an adjustment of the 
 amount in subsection

    (a)

    (1) .
 ``
            (D) Earned income.--In this paragraph, the term 
 `earned income' has the meaning given that term in 
 

section 32
            (c) (2) of the Internal Revenue Code of 1986.
 ``

    (5) Earnings disregard.--
 ``
        (A) In general.--Subject to subparagraph
        (B) , an 
 individual may earn up to 100 percent of the amount of 
 the individual's weekly jobseeker allowance without 
 losing eligibility for the weekly jobseeker allowance.
 ``
        (B) Reduction.--In the case of an individual who 
 is not receiving regular compensation or extended 
 compensation under any State of Federal law with 
 respect to a week, if the individual's earnings are 
 greater than \1/4\ of the amount of the individual's 
 weekly jobseeker allowance (determined after 
 application of paragraphs

    (2) ,

    (3) , and

    (4) ) for the 
 week, the amount of the individual's weekly jobseeker 
 allowance (as so determined) for the week shall be 
 reduced by 75 cents for each dollar earned above \1/4\ 
 of the amount of the individual's weekly jobseeker 
 allowance (as so determined).
 ``
            (c) Jobseeker Allowance Account.--
 ``

    (1) In general.--A State shall establish, for each 
 eligible individual who files an application for a jobseeker 
 allowance, a jobseeker allowance account.
 ``

    (2) Maximum amount.--The maximum amount of a jobseeker 
 allowance payable to any individual for whom a jobseeker 
 allowance account is established under paragraph

    (1) may not 
 exceed the amount established in such account for such 
 individual.
 ``

    (3) Base-tier jobseeker allowance.--The amount 
 established in an account under paragraph

    (1) shall be equal to 
 26 times the amount of the weekly jobseeker allowance (as 
 determined under subsection

    (b) , taking into account the 
 application of paragraph

    (4) of such subsection but not taking 
 into account the application of paragraphs

    (2) ,

    (3) , and

    (5) of 
 such subsection). Such amount shall be referred to in this 
 section as the `base-tier jobseeker allowance'.
 ``

    (4) First-tier jobseeker allowance.--
 ``
        (A) In general.--If, at the time that the amount 
 added to an individual's account under paragraph

    (3) is 
 exhausted, or at any time during the individual's 
 benefit year, such individual's State is in an extended 
 benefit period under 

section 203
            (d) of the Federal-
 State Extended Unemployment Compensation Act of 1970 
 (26 U.S.C. 3304 note), such account shall be augmented 
 by an amount (in this section referred to as `first 
 tier jobseeker allowance') equal to 13 times the amount 
 of the weekly jobseeker allowance (as determined under 
 subsection

    (b) , taking into account the application of 
 paragraph

    (4) of such subsection but not taking into 
 account the application of paragraphs

    (2) ,

    (3) , and

    (5) of such subsection).
 ``
        (B) Limitation.--The account of an individual may 
 be augmented not more than once under this paragraph.
 ``

    (5) Second-tier additional jobseeker allowance.--
 ``
        (A) In general.--If, at the time that the amount 
 added to an individual's account under paragraph

    (4) is 
 exhausted, or at any time during the individual's 
 benefit year, such individual's State is in a second-
 tier high unemployment period under 

section 202

    (b)

    (3)
        (B)
            (i) of the Federal-State Extended 
 Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
 note), such account shall be augmented by an amount (in 
 this section referred to as `second-tier jobseeker 
 allowance') equal to 13 times the amount of the weekly 
 jobseeker allowance (as determined under subsection

    (b) of this section, taking into account the application of 
 paragraph

    (4) of such subsection but not taking into 
 account the application of paragraphs

    (2) ,

    (3) , and

    (5) of such subsection).
 ``
        (B) Limitation.--The account of an individual may 
 be augmented not more than once under this paragraph.
 ``

    (6) Third-tier additional jobseeker allowance.--
 ``
        (A) In general.--If, at the time that the amount 
 added to an individual's account under paragraph

    (5) is 
 exhausted, or at any time during the individual's 
 benefit year, such individual's State is in a third-
 tier high unemployment period under 

section 202

    (b)

    (3)
        (B)
            (ii) of the Federal-State Extended 
 Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
 note), such account shall be augmented by an amount (in 
 this section referred to as `third-tier jobseeker 
 allowance') equal to 13 times the amount of the weekly 
 jobseeker allowance (as determined under subsection

    (b) of this section, taking into account the application of 
 paragraph

    (4) of such subsection but not taking into 
 account the application of paragraphs

    (2) ,

    (3) , and

    (5) of such subsection).
 ``
        (B) Limitation.--The account of an individual may 
 be augmented not more than once under this paragraph.
 ``

    (7) Fourth-tier additional jobseeker allowance.--
 ``
        (A) In general.--If, at the time that the amount 
 added to an individual's account under paragraph

    (6) is 
 exhausted, or at any time during the individual's 
 benefit year, such individual's State is in a fourth-
 tier high unemployment period under 

section 202

    (b)

    (3)
        (B)
            (iii) of the Federal-State Extended 
 Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
 note), such account shall be augmented by an amount (in 
 this section referred to as `fourth-tier jobseeker 
 allowance') equal to 13 times the amount of the weekly 
 jobseeker allowance (as determined under subsection

    (b) of this section, taking into account the application of 
 paragraph

    (4) of such subsection but not taking into 
 account the application of paragraphs

    (2) ,

    (3) , and

    (5) of such subsection).
 ``
        (B) Limitation.--The account of an individual may 
 be augmented not more than once under this paragraph.
 ``
            (d) Payments to States.--
 ``

    (1) In general.--
 ``
        (A) Full reimbursement.--There shall be paid to 
 each State an amount equal to 100 percent of--
 ``
            (i) the total amount of jobseeker 
 allowances paid to individuals by the State 
 pursuant to this section; and
 ``
            (ii) any additional administrative 
 expenses incurred by the State by reason of 
 making such payments (as determined by the 
 Secretary of Labor).
 ``
        (B) Terms of payments.--Sums payable to any State 
 under this section shall be payable, either in advance 
 or by way of reimbursement (as determined by the 
 Secretary of Labor), in such amounts as the Secretary 
 of Labor estimates the State will be entitled to 
 receive under this section for each calendar month, 
 reduced or increased, as the case may be, by any amount 
 by which the Secretary of Labor finds that the 
 Secretary's estimates for any prior calendar month were 
 greater or less than the amounts that should have been 
 paid to the State. Such estimates may be made on the 
 basis of such statistical, sampling, or other method as 
 may be agreed upon by the Secretary of Labor and the 
 State agency of the State involved.
 ``

    (2) Certifications.--The Secretary of Labor shall from 
 time to time certify to the Secretary of the Treasury for 
 payment to each State the sums payable to such State under this 
 section.
 ``

    (3) Deposit.--Sums payable to any State under this 
 section shall be deposited in the account of such State in the 
 Unemployment Trust Fund. Amounts deposited under preceding 
 sentence may only be used by the State for the payment of 
 jobseeker allowances under this section.
 ``

    (4) Funding.--There are appropriated from the general 
 fund of the Treasury, without fiscal year limitation, such sums 
 as may be necessary for purposes of this section.
 ``

    (e) Fraud and Overpayments.--
 ``

    (1) In general.--If an individual knowingly has made, or 
 caused to be made by another, a false statement or 
 representation of a material fact, or knowingly has failed, or 
 caused another to fail, to disclose a material fact, and as a 
 result of such false statement or representation or of such 
 nondisclosure such individual has received an amount of 
 jobseeker allowances to which such individual was not entitled, 
 such individual--
 ``
        (A) shall be ineligible for further jobseeker 
 allowances in accordance with the provisions of the 
 applicable State unemployment compensation law relating 
 to fraud in connection with a claim for unemployment 
 compensation; and
 ``
        (B) shall be subject to prosecution under 

section 1001 of title 18, United States Code.
 ``

    (2) Repayment.--In the case of individuals who have 
 received amounts of jobseeker allowances to which they were not 
 entitled, the State shall require such individuals to repay the 
 amounts of such jobseeker allowances to the State agency, 
 except that the State agency shall waive such repayment if it 
 determines that--
 ``
        (A) the payment of such jobseeker allowance was 
 not based on fraud on the part of any such individual; 
 and
 ``
        (B) such repayment would be contrary to equity 
 and good conscience.
 ``

    (3) Recovery by state agency.--
 ``
        (A) In general.--The State agency may recover the 
 amount to be repaid, or any part thereof, by deductions 
 from any jobseeker allowance payable to such individual 
 or from any unemployment compensation payable to such 
 individual under any State or Federal unemployment 
 compensation law administered by the State agency or 
 under any other State or Federal law administered by 
 the State agency which provides for the payment of any 
 assistance or allowance with respect to any week of 
 unemployment, during the 3-year period after the date 
 such individual received the payment of the jobseeker 
 allowance to which they were not entitled, in 
 accordance with the same procedures as apply to the 
 recovery of overpayments of regular unemployment 
 benefits paid by the State.
 ``
        (B) Opportunity for hearing.--No repayment shall 
 be required, and no deduction shall be made, until a 
 determination has been made, notice thereof and an 
 opportunity for a fair hearing has been given to the 
 individual, and the determination has become final.
 ``

    (4) Review.--Any determination by a State agency under 
 this section shall be subject to review in the same manner and 
 to the same extent as determinations under the State 
 unemployment compensation law, and only in that manner and to 
 that extent.
 ``

    (5) Deposit in state unemployment fund.--Any amount 
 recovered by a State agency pursuant to this section shall be 
 deposited in the account of such State in the Unemployment 
 Trust Fund. Amounts deposited under preceding sentence may only 
 be used by the State for the payment of jobseeker allowances 
 under this section.
 ``

    (f) Payment To Be Disregarded for Purposes of All Federal and 
Federally Assisted Programs.--A jobseeker allowance payment shall not 
be regarded as income and shall not be regarded as a resource for the 
month of receipt and the following 12 months, for purposes of 
determining the eligibility of the recipient (or the recipient's spouse 
or family) for benefits or assistance, or the amount or extent of 
benefits or assistance, under any Federal program or under any State or 
local program financed in whole or in part with Federal funds.
 ``

    (g) Regulations.--Not later than 3 months after the date of 
enactment of this section, the Secretary of Labor shall issue 
regulations to carry out this section.''.

    (b) Permissible Use of Funds.--

    (1) Internal revenue code of 1986.--

Section 3304

    (a)

    (4) of 
 the Internal Revenue Code of 1986, as amended by 

section 215, 
 is amended--
        (A) in subparagraph
        (G)
            (ii) , by striking ``and'' at 
 the end;
        (B) in subparagraph
        (H) , by inserting ``and'' at 
 the end; and
            (C) by adding at the end the following:
 ``
            (I) amounts may be withdrawn for the payment of 
 jobseeker allowances under 

section 3304C;''.

    (2) Social security act.--

Section 303

    (a)

    (5) of the Social 
 Security Act, as amended by 

section 215, is amended by striking 
 ``; and'' at the end and inserting ``: Provided further, That 
 amounts may be withdrawn for the payment of jobseeker 
 allowances under 

section 3304C; and''.
            (c) Conforming Amendment.--The table of sections for chapter 23 of 
the Internal Revenue Code of 1986, as amended by 

section 215 and 218, 
is amended inserting after the item relating to 

section 3304B the 
following new item:

``

Sec. 3304C. Jobseeker allowance.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to weeks of unemployment beginning on or after the earlier of--

    (1) the date the State changes its statutes, regulations, 
 or policies in order to comply with such amendments; or

    (2) January 1, 2027.
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