Clawing back Lapsed Obligations from State Emergency programs Act; CLOSE Act
Summary
The "Clawing back Lapsed Obligations from State Emergency programs Act" (CLOSE Act) aims to amend the CARES Act by terminating unemployment insurance benefit payments and rescinding unobligated balances appropriated for such payments. This bill targets Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), Mixed Earner Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. It seeks to end these programs 30 days after the enactment of the CLOSE Act and recover any unused funds.
Expected Effects
If enacted, the CLOSE Act would immediately cease several unemployment benefit programs established under the CARES Act. States would no longer be able to enter into or re-enter agreements for these programs. The federal government would reclaim unobligated funds allocated for these unemployment benefits.
Potential Benefits
- Potentially reduces government spending and the national debt by rescinding unobligated funds.
- May incentivize individuals to return to the workforce, filling open job positions.
- Could lead to a decrease in the budget deficit.
- Streamlines government programs by eliminating temporary pandemic-era assistance.
- May reduce the risk of fraud associated with unemployment benefits.
Most Benefited Areas:
Potential Disadvantages
- Individuals currently relying on these unemployment benefits would lose their income support.
- May increase financial hardship for those who are still unemployed or underemployed.
- Could negatively impact economic recovery in areas with high unemployment rates.
- May increase demand for other social safety net programs.
- Potential for increased poverty rates, especially among vulnerable populations.
Constitutional Alignment
The CLOSE Act appears to align with Congress's power to appropriate funds and manage federal spending, as outlined in Article I, Section 8 of the Constitution. Congress has the authority to create and terminate programs, as well as to allocate and rescind funds as it deems necessary. The bill does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).