S2312119th CongressWALLET

Unemployment Insurance Modernization and Recession Readiness Act

Sponsored By: Senator Sen. Wyden, Ron [D-OR]

Introduced

Summary

This bill would modernize and expand the federal unemployment safety net by raising minimum benefit floors, creating a new federal Jobseeker Allowance, and adding a weekly dependents' payment to boost household support.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

More Extended Benefits and emergency pay

If enacted, the bill would expand Extended Benefits (EB) for high-unemployment periods and create emergency Enhanced Unemployment Compensation (EEUC) during State emergency periods. It adds tiered account augmentations that increase weeks and money (second tier 26 weeks, third 39 weeks, fourth 52 weeks) and gives each tier a one-time addition equal to 13 times the weekly EB. The Federal government would pay 100% of EB and EEUC (and admin costs) in the specified cases. EB portability across States would be required. The bill also updates how EB triggers are calculated and exempts these federal EB payments from sequestration.

New Jobseeker Allowance program

If enacted, the bill would create a weekly Jobseeker Allowance (JSA). The base JSA would be $250 in 2027 and rise after 2027 by the CPI‑U (June-to-June). States must open a JSA account worth 26 times the weekly JSA and may add one-time 13× boosts for tiers. You could keep working and still get JSA, but the law reduces JSA when weekly earnings pass a quarter-of-JSA threshold (a $0.75 cut per dollar over that amount). If you are available less than 20 hours a week, your JSA would be half. The Federal government would reimburse States 100% of JSA payments and admin costs. The law would also say JSA payments do not count as income or resources for most federally funded benefits for the month received and the next 12 months. The law would let States use their Unemployment Trust Fund accounts to pay JSA and would require States to offer self-employment-assistance allowances under qualifying State programs.

Stronger weekly unemployment checks and rules

If enacted, States would have higher and fairer regular unemployment rules. Weekly benefits must be at least 75% of your highest quarter earnings divided by 13 (up to the State maximum). A State maximum could not be less than two-thirds of the State average weekly wage. Regular benefits must last at least 26 weeks and the first week would be paid (no unpaid waiting week). Dependents' allowances would be $25 per dependent in 2027, indexed after that. States would use a four-quarter base period and must give extra quarters for people who had unpaid leave or were incapacitated. The bill also protects part-time jobseekers, treats finishing temporary assignments as layoffs, and lists reasons when voluntary separations or labor-dispute separations do not disqualify you. It also sets documentation rules for victims and updates student-worker rules.

Higher short-time pay for workers

If enacted, short-time compensation would pay about 80% of your applicable weekly wage instead of 60%. States would have to let employers file weekly claims on behalf of employees. The 80% increase to the statutory wage-replacement rate would take effect on the date of enactment. Other program changes would start when your State updates rules or by January 1, 2027.

Stricter worker test for gig workers

If enacted, State unemployment rules would treat an individual as an employee unless three tests are all met: the worker is free from control, the work is outside the hiring entity's usual business, and the worker runs an independent business doing the same work. This would make it harder to be classified as an independent contractor for unemployment purposes.

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Sponsors & CoSponsors

Sponsor

Sen. Wyden, Ron [D-OR]

OR • D

Cosponsors

  • Sen. Bennet, Michael F. [D-CO]

    CO • D

    Sponsored 7/16/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 7/16/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 7/16/2025

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 7/16/2025

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 7/16/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 7/16/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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