CLOSE Act Targets CARES Act Unemployment Funds: Programs End, Billions Rescinded in 30 Days

Alright, let's talk about the CLOSE Act, officially known as the "Clawing back Lapsed Obligations from State Emergency programs Act." This bill is pretty straightforward: it's hitting the brakes on three big federal unemployment programs that came out of the CARES Act during the pandemic. We're talking about Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), and Pandemic Emergency Unemployment Compensation (PEUC). The kicker? Thirty days after this bill becomes law, these programs are done, and any unspent money tied to them gets rescinded. So, if you're a gig worker, self-employed, or someone who's been relying on extended benefits or that extra weekly boost, this is a major shift.

The Countdown to Cutoff

Under this bill, the clock starts ticking the moment it's enacted. Within 30 days, the ability for the Secretary of Labor to make any new benefit payments under PUA and FPUC vanishes. For PUA, which helped out folks who didn't qualify for traditional unemployment—think freelancers, contractors, and small business owners—that means no more checks. If you're a construction worker who typically works contract gigs, or a graphic designer running your own shop, this could leave a pretty big hole if you're still not back to full steam. Similarly, FPUC, which was that extra $600 weekly payment on top of regular state benefits, also gets terminated. For someone juggling rising rent and grocery costs, that kind of supplemental income can be the difference between making ends meet and falling behind. The bill also states that no state can enter into new agreements for FPUC after enactment, effectively closing that door for good.

Extended Benefits Gone, Funds Recalled

Then there's PEUC, the program designed to give you extra weeks of benefits once your standard state unemployment ran out. This bill outright repeals the sections of the CARES Act that authorized PEUC, also effective 30 days after enactment. Imagine you're a factory worker who was laid off, exhausted your state benefits, and was relying on PEUC to keep things afloat while you retrain for a new role. This bill pulls that rug out from under you. On top of terminating these programs, the CLOSE Act is also rescinding all unspent funds that were appropriated for PUA, FPUC, and PEUC. This money, which was sitting in the extended unemployment compensation account of the federal Unemployment Trust Fund, will be pulled back. While this might look good on paper for government budgets, it also means there's no backup plan for these programs, even if economic conditions were to worsen again. For the everyday person, it means a significant part of the pandemic-era safety net is being dismantled, potentially leaving many to navigate ongoing economic uncertainties without the same level of federal support.