CLOSE Act
- Bill Number
- S. 3760
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-02: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-02-11T17:39:55Z
AI-Generated Summary
Purpose
The CLOSE Act (S. 3760) aims to terminate specific unemployment insurance benefits established under the CARES Act in response to the COVID-19 pandemic and to recover (rescind) any unspent federal funds allocated for those benefits. This is intended to end ongoing emergency payments and reclaim unused money from the federal budget.
Key Provisions
- Termination of Pandemic Unemployment Assistance (PUA): Ends benefit payments to individuals 30 days after the bill's enactment, while allowing continued funding for states' administrative costs (e.g., processing claims). Rescinds all unspent funds from the Unemployment Trust Fund originally appropriated for PUA.
- Termination of Federal Pandemic Unemployment Compensation (FPUC) and Mixed Earner Unemployment Compensation (MEUC): Stops the extra $600 weekly federal supplement to regular unemployment benefits and the additional support for self-employed or gig workers 30 days after enactment. Prohibits states from entering new agreements for these programs. Rescinds unspent funds allocated for the supplements.
- Repeal of Pandemic Emergency Unemployment Compensation (PEUC): Fully repeals the program that extended regular unemployment benefits beyond the standard duration. Rescinds unspent funds from the Unemployment Trust Fund.
- Effective Dates: All terminations and rescissions take effect 30 days after the bill becomes law, providing a short transition period.
Significant Changes to Existing Law
- Amends sections 2102, 2104, and 2107 of the CARES Act (15 U.S.C. 9021, 9023, 9025) by adding termination clauses that override prior provisions, except for administrative funding.
- Introduces a outright repeal of PEUC subsections related to benefit extensions and funding.
- Prohibits future state agreements for FPUC and MEUC, preventing any revival of these programs.
- These changes effectively sunset pandemic-era unemployment enhancements that were originally temporary but had been extended in subsequent laws.
Potential Impacts
- On Citizens: Ends federal unemployment benefits for millions who may still be out of work due to the pandemic, potentially increasing financial hardship for low-income or unemployed individuals relying on these supplements. However, it preserves state administrative support to maintain basic unemployment systems.
- On Government Agencies: Reduces federal spending by rescinding billions in unobligated funds (exact amounts not specified in the bill), easing pressure on the Unemployment Trust Fund and the federal budget. The Department of Labor (DOL) and states' unemployment offices would shift focus from emergency programs to standard operations.
- On International Relations: No direct impact, as the bill focuses on domestic fiscal and labor policy.
- Broader Economic Effects: Could accelerate return-to-work incentives by removing extended benefits but might strain state budgets if local unemployment rises without federal support.
Main Stakeholders Affected
- Unemployed Individuals: Primary recipients of PUA, FPUC, MEUC, and PEUC, who lose access to these benefits after the 30-day period.
- State Governments: Unemployment insurance agencies benefit from continued administrative funding but face challenges in managing transitions and potential increases in state-funded claims.
- Federal Government: The DOL, Treasury Department, and Congress gain fiscal savings through fund rescissions, reducing the national debt.
- Taxpayers: Indirectly benefit from lower federal expenditures, as unspent COVID-19 relief funds are returned to the general treasury.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill's rescission of funds complies with congressional authority over appropriations (under Article I, Section 9 of the U.S. Constitution), but it could face challenges if seen as retroactively altering vested rights for ongoing claimants. The 30-day delay provides minimal due process for affected parties.
- Constitutional: No apparent violations, as it targets temporary emergency measures rather than core entitlements like Social Security. However, abrupt termination might raise equal protection concerns for those in ongoing need.
- Political: Represents a conservative fiscal approach to "claw back" pandemic spending, potentially sparking debate over balancing budget control against social safety nets. As an amendment to the CARES Act, it could influence future emergency relief legislation by setting a precedent for ending programs post-crisis.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-02-02: Read twice and referred to the Committee on Finance.
- 2026-02-02: Introduced in Senate
Bill Versions
- Clawing back Lapsed Obligations from State Emergency programs Act — issued 2026-02-02 — PDF (5 pages)