S. 3760: Clawing back Lapsed Obligations from State Emergency programs Act

This bill, known as the Clawing back Lapsed Obligations from State Emergency programs Act or the CLOSE Act, aims to amend the CARES Act regarding unemployment benefits. Here’s a detailed summary of its main provisions:

Termination of Assistance Payments

The bill proposes to end unemployment insurance benefit payments that were established under the CARES Act. Specifically, it states that after 30 days from the date the bill becomes law, no further payments will be made under the pandemic unemployment assistance provisions. This includes provisions for:

• Pandemic Unemployment Assistance (PUA)
• Federal Pandemic Unemployment Compensation (FPUC)
• Mixed Earners Unemployment Compensation (MEUC)

Rescission of Unobligated Balances

The bill also seeks to rescind funds that were allocated for these unemployment benefits but have not yet been used (unobligated balances). This includes funds from:

• The Extended Unemployment Compensation account, which is part of the Unemployment Trust Fund.
• Amounts appropriated for the purposes of Pandemic Emergency Unemployment Compensation (PEUC).

On the effective date, any remaining unobligated funds will be taken back by the government.

Prohibition on Future Agreements

The legislation prohibits states from entering into or renewing any agreements related to the extended unemployment benefits after the enactment of the bill. This means that states would not be able to initiate new programs for these unemployment benefits.

Timeline for Implementation

The various provisions, including the termination of benefits and rescission of funds, will take effect 30 days after the bill becomes law.

Relevant Companies

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