Late in the evening of March 2nd, the US Senate passed a bill that would delay the phase out of Emergency Unemployment Compensation (EUC). Later in the evening President Obama signed the bill into law.

The passage of this bill means that applicants who exhaust regular UI benefits will continue to move to EUC Tier One, those who exhaust EUC Tier One will move to Tier Two, and those who exhaust EUC Tier Three will move to Federal-State Extended benefits (EB).

While the bill moves the beginning of the phase out period, it does not add additional benefits for applicants who have exhausted all entitlement to benefits.

Applicants will begin seeing changes to their online accounts over the next few days.

Congress is considering several other longer term options for extended benefits, but it is not expected that action will be taken for several weeks.

What is a “phase out”? There are three tiers of EUC. Prior to the “phase out” period, if an applicant exhausts a tier of EUC benefits, he/she moves to the next tier. If he or she exhausts the third tier of EUC, he or she moves to Federal-State Extended Benefits. Under federal law, when the “phase out” period begins applicants will no longer be able to move from regular UI to the first tier of EUC or from one tier of EUC to the next. Rather, if an applicant exhausts regular UI, or the first or second tier of EUC, he or she will move directly to Federal-State Extended benefits. Federal-State Extended benefits provides up to 13 weeks of additional benefits. The new legislation moves the beginning of the phase out period from February 28, 2010 to April 5, 2010.

Emergency Unemployment Compensation (EUC) and American Recovery and Reinvestment Act of 2009 (ARRA)

Extended benefits for those who have exhausted a regular unemployment account

$25.00 weekly additional payment
$2400.00 of unemployment benefits not subject to federal income tax (for 2009)

Federal-State Extended Benefits (EB)

For those who have exhausted a regular unemployment account and federal EUC

Frequently Asked Questions

Links to Extension of Benefits FAQs

Information for Employers

The effect of extensions on employer accounts