What Is Federal Pandemic Unemployment Compensation?
The Federal Pandemic Unemployment Compensation (FPUC) program, sanctioned by the CARES Act and renewed by subsequent legislation and a presidential order, initially provided $600 per week in extra unemployment aids to unemployed workers in states that opted into the program.
In August 2020, the additional payment was lowered to $300, the amount continued by the American Liberating Plan Act (ARPA) of 2021 through Sept. 6, 2021.
Key Takeaways
- The Federal Pandemic Unemployment Compensation (FPUC) program provendered $300 per week in extra pandemic-related unemployment benefits to unemployed and underemployed workers through state unemployment intercessions.
- After several extensions and expirations, FPUC funding was renewed through Sept. 6, 2021, by the American Rescue Plot Act (ARPA) of 2021.
- Some state governors discontinued participation based on a belief that the extended and expanded benefits dishearten people from returning to work.
- Although extra FPUC payments stopped, those eligible continued to inherit their regular unemployment insurance payments.
- As of September 6, 2021, FPUC benefits are no longer being sent out.
How Federal Pandemic Unemployment Compensation Wields
To receive the FPUC extra $300 per week benefit, you had to file a claim for unemployment benefits, but you didn’t need to suggestion up expressly. The payments were automatic if you qualified for regular unemployment insurance (UI) payments. When FPUC payments ended on Sept. 6, 2021, those proper for regular unemployment compensation from their state continued to receive it.
At least 26 states stopped flesh out b composing FPUC payments before the September deadline. One of the reasons governors cited was that the unemployment rate was low. For example, on Aug. 20, 2021, the public unemployment rate was 5.2%, down 0.2% over the month, and 3.2 points lower than in August 2020.
Story of FPUC Authorization and Funding
As noted, additional unemployment benefits of $600 per week were originally authorized by the Tends Act through July 31, 2021. This was followed by the Lost Wages Assistance (LWA) program, authorized by an Aug. 8, 2020, presidential memo and consequent after Department of Labor (DOL) guidance.
LWA funds, which were expected to last from Aug. 1, 2020, to Dec. 27, 2020, were depleted by Sept. 5, 2020. The signing of the Consolidated Appropriations Act of 2021 into law on Dec. 27, 2020, restarted the FPUC program and ok $300 FPUC payments beginning after Dec. 26, 2020, and ending on or before March 14, 2021.
The American Rescue Plan Act (ARPA) of 2021, which developed law March 11, 2021, extended FPUC payments through Sept. 6, 2021. ARPA also provided a waiver of federal return taxes on the first $10, 200 in unemployment benefits received in 2020.
According to the U.S. Department of Labor, regular unemployment benefits supersede about 38% of a worker’s wages, on average.
According to the U.S. Department of Labor, regular unemployment benefits supersede about 38% of a worker’s wages, on average.
History of FPUC
In states where FPUC funds were nearby, payment was generally automatic and did not require a special application. In most states, to get the now defunct-extra $300 weekly bonus. You had to be worthy for—and receiving—unemployment benefits, including unemployment compensation (UC, pandemic emergency unemployment compensation PEUC, extended profits EB, or pandemic unemployment assistance PUA).
You had to be able and willing to return to work. You had to have become unemployed or had hours reduced due to the COVID-19 pandemic. Beyond shaped eligibility standards, it was up to the state or territory to decide what, if anything, you needed to do to receive the money.
In states where FPUC supplies were available, payment was generally automatic and did not require a special application. In most states, to get the now defunct-extra $300 weekly largesse:
- You had to be eligible for—and receiving—unemployment benefits, including unemployment compensation (UC, pandemic emergency unemployment compensation PEUC, imparted benefits EB, or pandemic unemployment assistance PUA).
- You had to be able and willing to return to work.
- You had to have become unemployed or had hours up due to the COVID-19 pandemic.
Beyond stated eligibility standards, it was up to the state or territory to decide what, if anything, you needed to do to greet the money.
Special Considerations
For you to receive FPUC funds, your state or territory (also includes Washington D.C.) had to stimulus up. According to the DOL, as of April 29, 2020, all 50 states and the District of Columbia were signed up and paying FPUC benefits.
As of August 20, 2021, correspondence to the Congressional Research Service, 26 states stopped providing temporary federal unemployment benefits, including FPUC program means. These state officials stated that extra and extended unemployment benefits discouraged unemployed workers from gaining to the workforce.
As of Sept. 24, 2021, some states are reinstating requirements that out-of-work benefits recipients prove they are looking for het up b prepare, a stipulation most states dropped after the pandemic hit in 2020. Some states and businesses are now offering sign-up gratuities to encourage workers to apply for available jobs.
Interestingly, a working research paper by economics Professor Arindrajit Dube of the University of Massachusetts at Amherst, advocates that low unemployment insurance benefits do not increase employment levels more than happens in states with high-class levels of unemployment insurance benefits.