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December 3, 2024
Avoiding an Unemployment Loan Bailout
Taxpayers in most states may have dodged a billion-dollar bullet on election day. That is, if the outcome had been different, liberal lawmakers would have been uniquely positioned to bail out California and New York unemployment benefit debts, and in the process shift large costs onto taxpayers in other states. All states levy payroll taxes…
June 18, 2024
Answering Key Questions About Unemployment Insurance Reforms
Chairman LaHood, Ranking Member Davis, and members of the Work and Welfare Subcommittee, thank you for the opportunity to submit testimony on potential improvements to the nation’s unemployment insurance (UI) system to better support American workers, businesses, and taxpayers. My name is Matt Weidinger, and I am a Rowe Scholar in poverty studies at the…
June 17, 2024
Fixing the Roof on Sunny Days—and Other Lessons in Administering Unemployment Benefits
A recent hearing of the House Ways and Means Subcommittee on Work and Welfare confirmed that the financing of the nation’s Unemployment Insurance (UI) system is enormously complicated. Even the name of the federal payroll tax (FUTA—short for the Federal Unemployment Tax Act that authorizes it and pronounced “few-ta”) is confusing. That complexity sent subcommittee members searching…
April 29, 2024
New “Scorecard” Report Promotes Better Use of Data to Prevent Unemployment Fraud
Criminals inflicted unprecedented fraud on taxpayer benefits during the pandemic, and some of the most abused programs were those that provided temporary federal unemployment benefits. As we documented in a January 2024 report (Pandemic Unemployment Fraud in Context: Causes, Costs, and Solutions), official government tallies of improper payments and fraud stretch toward $200 billion, while unofficial estimates…
April 29, 2024
Measuring What Matters: Context and Recommendations to Improve Reporting on Unemployment Insurance
Key Points Read the PDF.
February 29, 2024
Recalling Pandemic Lessons on “Self-Certifying” Eligibility
Sometimes what is left unmentioned can be far more important than what is said. A good example is obscure guidance issued last week by the US Department of Labor (DOL) encouraging workforce programs to allow beneficiaries to self-certify their eligibility. That guidance directly affects a handful of programs with limited funding that offer a variety of employment-related…
January 29, 2024
Pandemic Unemployment Fraud in Context: Causes, Costs, and Solutions
Key Points Read the PDF.
November 20, 2023
The Next Time States Are “Swimming in Money” Make Them Repay Their Federal Loans
The pandemic was full of firsts, including the first time states received hundreds of billions of federal dollars they could use to shore up their depleted state unemployment insurance (UI) programs. The March 2020 CARES Act provided $150 billion in a flexible “Coronavirus Relief Fund,” whose potential uses included covering states’ “unemployment insurance costs.” Then the March 2021 American…
September 29, 2023
Solutions to Reduce Government Improper Payments Involving Unemployment Benefits
OverviewThe coronavirus pandemic tested the nation’s unemployment benefits system more than any prior recession. Not only did far more individuals file claims for weekly benefits than ever before, but lockdowns and mass layoffs concentrated those record claims starting in March 2020, creating an unprecedented surge in demand for benefits that quickly rose to an apparent…
September 23, 2023
Did Pandemic Unemployment Benefits Increase Unemployment? Evidence from Early State-level Expirations
Abstract During the 2021 pandemic year, the generosity of Unemployment Insurance benefits was expanded (Federal Pandemic Unemployment Compensation [FPUC]) and eligibility for benefits was broadened (Pandemic Unemployment Assistance [PUA]). These two programs were set to expire in September 2021. In June 2021, 18 states exited both FPUC and PUA and three states exited FPUC (but…