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UNEMPLOYMENT INSURANCE

February 24, 2012

Background
The Middle Class Tax Relief and Job Creation Act of 2012 guarantees continued federal unemployment benefits through the remainder of this year, while gradually reducing the number of weeks in the Emergency Unemployment Compensation (EUC) program through a 3-step process.

Throughout this period, the Extended Benefits (EB) program, which provides a maximum of 20 weeks of benefits after an individual exhausts EUC would continue under current law, phasing out as a state’s unemployment rates improves in comparison to three years ago.

From March through May – The level of unemployment insurance benefits continue equal to an extension of current law, and high unemployment states losing benefits under the EB program would get an extra 10 weeks. Between 89 and 99 weeks of total unemployment benefits available in high unemployment states between the EUC program and the EB program.

From June through August – The unemployment rate requirement would increase in three of the four tiers of the Emergency Unemployment Compensation (EUC) program. Up to 79 weeks of total benefits available in high unemployment States with a few states continuing to receive additional EB weeks as under current law.

From September through December – EUC benefits would be reduced by 6 weeks in all States. This would cap total unemployment benefits at 73 weeks by this fall.