Clawing back Lapsed Obligations from State Emergency programs Act; CLOSE Act
Summary
The CLOSE Act aims to amend the CARES Act by terminating unemployment insurance benefit payments and rescinding unobligated balances appropriated for these payments. This includes Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, Mixed Earner Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. The bill seeks to end these programs 30 days after enactment and reclaim unused funds.
Expected Effects
The act would immediately cease specific unemployment benefits provided under the CARES Act. States would no longer be able to enter into agreements for these benefits. The rescission of unobligated funds would reduce the amount of money available for unemployment assistance.
Potential Benefits
- Potentially reduces government spending and national debt.
- May incentivize individuals to return to the workforce.
- Could free up resources for other government programs.
- Aligns spending with current economic conditions, assuming reduced need for emergency assistance.
- Simplifies the unemployment insurance system by removing temporary pandemic-era programs.
Most Benefited Areas:
Potential Disadvantages
- Could negatively impact individuals relying on unemployment benefits.
- May increase financial hardship for those still unemployed.
- Potential for increased poverty and social inequality.
- Could reduce consumer spending and slow economic recovery.
- May strain state resources if unemployment rises unexpectedly.
Constitutional Alignment
The bill falls under Congress's power to tax and spend for the general welfare, as outlined in Article I, Section 8 of the Constitution. The rescission of funds and termination of programs are legislative actions within the scope of congressional authority. However, potential legal challenges could arise if the termination of benefits is argued to violate due process or equal protection principles.
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).