CLOSE Act Clawing back Lapsed Obligations from State Emergency programs Act
Impact
If passed, HB7306 would significantly alter the landscape of state unemployment benefits as it effectively rescinds federal funding meant to supplement state unemployment programs. States would no longer have the flexibility to enter into agreements for additional federal help under the Pandemic Emergency Unemployment Compensation provisions. This could lead to budget shortfalls in states and affect the economic recovery as millions of people depend on these funds. Furthermore, this bill may lead to increased pressure on state governments to create or sustain their unemployment support systems amidst declining federal assistance.
Summary
House Bill 7306, also known as the 'CLOSE Act,' is designed to amend the CARES Act by terminating unemployment insurance benefit payments and rescinding unobligated balances allocated for such payments. This bill seeks to halt additional federal unemployment assistance that some states have been relying on since the COVID-19 pandemic, aiming to shift responsibility back to state programs. The proposed changes would come into effect 30 days after the enactment of the Bill, posing significant implications for unemployed individuals and state governments that have been relying on federal support to manage unemployment crises.
Contention
The bill faces contention primarily due to its potential adverse effects on individuals facing unemployment. Critics argue that terminating these safety nets could lead to greater financial hardship for many families who have been depending on these benefits during economically challenging times. Supporters of the bill see it as a necessary action to reduce federal overreach and encourage states to manage their unemployment systems without additional federal involvement. The debate surrounding HB7306 encapsulates broader discussions on federal versus state control over economic recovery efforts and welfare programs.
Default Prevention Act This bill requires the Department of the Treasury to continue borrowing to pay the principal and interest on obligations held by the public or the Social Security trust funds if the federal debt limit is reached. The bill also (1) exempts any obligations issued under this bill from the debt limit if the obligations would otherwise cause the limit to be exceeded, and (2) prohibits the obligations from being used to compensate Members of Congress.
Pandemic Unemployment Fraud Enforcement ActThis bill extends from 5 to 10 years the statute of limitations for federal criminal charges or civil enforcement actions for fraud related to several unemployment insurance programs that were established during the COVID-19 pandemic. The extension applies to Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earners Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. The bill extends the statute of limitations for (1) criminal charges related to fraud, including aggravated identity theft, wire fraud, and conspiracy to commit fraud; and (2) civil actions involving false claims. However, the bill does not apply to a criminal prosecution or civil enforcement action if the applicable statute of limitations expired before the date of the bill's enactment.Additionally, the bill rescinds specified unobligated funds that were provided in the American Rescue Plan Act of 2021 to the Department of Labor for anti-fraud and program integrity activities.
Emergency management; prohibiting Governor from closing businesses under certain circumstances; requiring due process for businesses ordered to close. Effective date. Emergency.