Jobseeker allowance

(a) In general Chapter 23 of the Internal Revenue Code of 1986 is amended— (1) in section 3304(a), as previously amended by this Act— (A) in paragraph (37), by striking and at the end; (B) by redesignating paragraph (38) as paragraph (39); and (C) by inserting after paragraph (37) the following new paragraph: (38) payment of jobseeker allowances shall be paid pursuant to section 3304C; and; and (2) by inserting after section 3304B, as added by section 218, the following new section: 3304C. Jobseeker allowance (a) Allowance (1) In general Subject to the succeeding provisions of this section, for purposes of section 3304(a)(38), a State shall provide for a weekly jobseeker allowance to any eligible individual in accordance with standards established by the Secretary of Labor. (2) Eligible individual In this section, the term eligible individual means an individual who, for any week— (A) is unemployed or partially employed, including self-employment; (B) is— (i) subject to paragraph (4), able to work and available to work; and (ii) subject to paragraph (5), actively seeking work; (C) (i) is at least 19 years of age (or at least 18 years of age in the case of an individual in foster care under the responsibility of the State); or (ii) has earned a high school diploma or its recognized equivalent; and (D) subject to paragraph (3), has an adjusted gross income for the most recently completed tax year that does not exceed the contribution and benefit base as determined under section 230 of the Social Security Act. (3) Exception to AGI limitation The requirement under paragraph (2)(D) shall not apply to an individual in a household if, in the past 6 months— (A) another member of such household has been separated from employment; (B) the individual has become separated or divorced from their spouse; or (C) another member of the individual’s household has died. (4) Able to work and available to work (A) In general For purposes of paragraph (2)(B)(i), subject to subparagraph (B), an individual shall be considered to be able to work and available to work as long as any limit on the individual’s ability to work or availability to work does not constitute a withdrawal from the labor market. For purposes of the preceding sentence, an individual shall not be considered to have withdrawn from the labor market if the individual is able to work and available to work for 8 or more hours per week. (B) Exceptions A jobseeker allowance shall not be denied to an otherwise eligible individual for any week during which the individual is not able to work and available for work because the individual— (i) is not available for work outside of the locality of the individual’s residence; (ii) is not available for work during hours when they are the primary caregiver for a child or dependent; (iii) is attending a training course with the approval of the State agency in compliance with any regulations issued by the Secretary of Labor; (iv) is appearing for jury duty before any court under a lawfully issued summons; (v) has been temporarily laid off and is available to work only for the employer that has temporarily laid off the individual; or (vi) is temporarily ill or injured. (5) Actively seeking work (A) In general For purposes of paragraph (2)(B)(ii), subject to subparagraphs (B) and (C), an individual shall be considered to be actively seeking work if the individual— (i) engages in an active search for employment that is appropriate in light of the employment available in the labor market and the individual's skills and capabilities, including a number of employer contacts that is consistent with the standards developed by the Secretary of Labor and communicated to the individual; (ii) maintains a record of such work search, including employers contacted, method of contact, and date contacted; (iii) when requested, provides such record to the State agency; and (iv) is registered for employment services in such a manner and to such extent as prescribed by the Secretary of Labor. (B) Special rule for self-employment In the case of an individual with a work history that includes self-employment, the individual may be considered actively seeking work if the individual— (i) is engaged in activities (which may include State-approved entrepreneurial training, business counseling, and technical assistance) relating to resuming self-employment that meet requirements established by the Secretary of Labor; (ii) maintains a record of such activities; and (iii) when requested, provides such record to the State agency. (C) Exceptions A jobseeker allowance shall not be denied to an otherwise eligible individual for any week during which the individual is not actively seeking work because the individual— (i) is attending a training course with the approval of the State agency and the Secretary of Labor; (ii) has been temporarily laid off with a reasonable expectation the individual will return to work soon; (iii) has a specified start date for new employment; (iv) is appearing for jury duty before any court under a lawfully issued summons; or (v) has a compelling reason (as defined in section 3304(g)) or is a victim of a qualifying act of violence or harassment (as determined pursuant to section 3304(h)). (6) May not refuse offer of suitable work (A) In general Subject to subparagraphs (B) and (C), an individual shall not be eligible for a jobseeker allowance if the individual refuses an offer of suitable work. (B) Nonsuitable work Work shall not be considered suitable work for an individual if the work— (i) poses an unreasonable risk to the individual’s health, safety, or morals; (ii) is not within the individual’s experience, training, or physical capability to perform; (iii) is outside of the locality of the individual’s residence or is an unreasonable distance from such residence; or (iv) meets other criteria established by the Secretary of Labor. (C) Exceptions A jobseeker allowance shall not be denied to an otherwise eligible individual for any week for refusing an offer of suitable work if— (i) the position offered is vacant due directly to a strike, lockout, or other labor dispute; (ii) the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality; (iii) the position pays wages less than the higher of— (I) the minimum wage provided by section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)), without regard to any exemption; (II) any applicable State or local minimum wage; (iv) if as a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization; (v) the position was not offered to such individual in writing; or (vi) the work meets other criteria established by the Secretary. (b) Amount of jobseeker allowance (1) Amount (A) In general Subject to the succeeding provisions of this subsection, the weekly amount of a jobseeker allowance shall be an amount equal to— (i) for 2027, $250; and (ii) for 2028 or a subsequent year, the dollar amount specified in this subparagraph for the preceding year increased by the percentage change in the Consumer Price Index for All Urban Consumers for the 12-month period ending with June of such preceding year. (B) Rounding If any amount determined under subparagraph (A)(ii) is not a multiple of $1, such amount shall be rounded to the nearest multiple of $1. (2) Reduced amount for individuals exclusively seeking part-time work In the case of an eligible individual who is available to work for less than 20 hours per week, the amount of the jobseeker allowance for such individual for a week shall be equal to 50 percent of the jobseeker allowance that would otherwise apply under paragraph (1) for such week. (3) Reduced amount for individuals receiving unemployment benefits In the case of an eligible individual who is receiving unemployment compensation under any State of Federal law for a week, the amount of the jobseeker allowance for such individual for such week (determined after application of paragraph (2)) shall be reduced by the amount of such regular compensation or extended compensation for such week. (4) Increased amount for certain individuals in States with elevated unemployment (A) In general For weeks beginning in an elevated unemployment period, in the case of an eligible individual that meets the prior income threshold described in subparagraph (C), the amount of the jobseeker allowance for such individual for the week (determined after the application of paragraphs (2) and (3)) shall be increased by an amount equal to— (i) the lesser of— (I) an amount equal to 1.4 percent of the amount of the individual's earned income for the most recently completed tax year (or the immediately preceding tax year, if the individual has not filed a return of tax for the most recently completed tax year); or (II) two-thirds of the State's average weekly wage (as determined by the Secretary of Labor); reduced by (ii) the amount of the jobseeker allowance for such individual for such week (determined after application of paragraphs (2) and (3)); reduced by (iii) the amount of any reduction of the jobseeker allowance for such individual for such week pursuant to paragraph (3). (B) Elevated unemployment period For purposes of subparagraph (A), the term elevated unemployment period means any period during which an extended benefit period would be in effect under subsection (f) or (g) of section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) if such subsection was applied by substituting 7.5 percent for 5.5 percent. (C) Prior income threshold (i) In general For purposes of subparagraph (A), an eligible individual meets the prior income threshold described in this subparagraph for a week if— (I) the individual's earned income for the most recently completed tax year was equal to or greater than $10,000; and (II) the individual provides such documentation of prior earned income as the Secretary determines appropriate, such as, but not limited to, tax returns, Form W–2s, Form 1099s, and pay stubs. (ii) Inflation adjustment (I) In general In the case of any taxable year beginning in a calendar year after 2027, the dollar amount in clause (i)(I) shall be increased by an amount equal to— (aa) such dollar amount; multiplied by (bb) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2026 for calendar year 2016 in subparagraph (A)(ii) thereof. (II) Rounding Any increase determined under subclause (I) shall be rounded to the nearest multiple of $100 in the case of an adjustment of the amount in subsection (a)(1). (D) Earned income In this paragraph, the term earned income has the meaning given that term in section 32(c)(2) of the Internal Revenue Code of 1986. (5) Earnings disregard (A) In general Subject to subparagraph (B), an individual may earn up to 100 percent of the amount of the individual's weekly jobseeker allowance without losing eligibility for the weekly jobseeker allowance. (B) Reduction In the case of an individual who is not receiving regular compensation or extended compensation under any State of Federal law with respect to a week, if the individual's earnings are greater than 1/4 of the amount of the individual's weekly jobseeker allowance (determined after application of paragraphs (2), (3), and (4)) for the week, the amount of the individual's weekly jobseeker allowance (as so determined) for the week shall be reduced by 75 cents for each dollar earned above 1/4 of the amount of the individual's weekly jobseeker allowance (as so determined). (c) Jobseeker allowance account (1) In general A State shall establish, for each eligible individual who files an application for a jobseeker allowance, a jobseeker allowance account. (2) Maximum amount The maximum amount of a jobseeker allowance payable to any individual for whom a jobseeker allowance account is established under paragraph (1) may not exceed the amount established in such account for such individual. (3) Base-tier jobseeker allowance The amount established in an account under paragraph (1) shall be equal to 26 times the amount of the weekly jobseeker allowance (as determined under subsection (b), taking into account the application of paragraph (4) of such subsection but not taking into account the application of paragraphs (2), (3), and (5) of such subsection). Such amount shall be referred to in this section as the base-tier jobseeker allowance. (4) First-tier jobseeker allowance (A) In general If, at the time that the amount added to an individual's account under paragraph (3) is exhausted, or at any time during the individual's benefit year, such individual's State is in an extended benefit period under section 203(d) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), such account shall be augmented by an amount (in this section referred to as first tier jobseeker allowance) equal to 13 times the amount of the weekly jobseeker allowance (as determined under subsection (b), taking into account the application of paragraph (4) of such subsection but not taking into account the application of paragraphs (2), (3), and (5) of such subsection). (B) Limitation The account of an individual may be augmented not more than once under this paragraph. (5) Second-tier additional jobseeker allowance (A) In general If, at the time that the amount added to an individual's account under paragraph (4) is exhausted, or at any time during the individual's benefit year, such individual's State is in a second-tier high unemployment period under section 202(b)(3)(B)(i) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), such account shall be augmented by an amount (in this section referred to as second-tier jobseeker allowance) equal to 13 times the amount of the weekly jobseeker allowance (as determined under subsection (b) of this section, taking into account the application of paragraph (4) of such subsection but not taking into account the application of paragraphs (2), (3), and (5) of such subsection). (B) Limitation The account of an individual may be augmented not more than once under this paragraph. (6) Third-tier additional jobseeker allowance (A) In general If, at the time that the amount added to an individual's account under paragraph (5) is exhausted, or at any time during the individual's benefit year, such individual's State is in a third-tier high unemployment period under section 202(b)(3)(B)(ii) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), such account shall be augmented by an amount (in this section referred to as third-tier jobseeker allowance) equal to 13 times the amount of the weekly jobseeker allowance (as determined under subsection (b) of this section, taking into account the application of paragraph (4) of such subsection but not taking into account the application of paragraphs (2), (3), and (5) of such subsection). (B) Limitation The account of an individual may be augmented not more than once under this paragraph. (7) Fourth-tier additional jobseeker allowance (A) In general If, at the time that the amount added to an individual's account under paragraph (6) is exhausted, or at any time during the individual's benefit year, such individual's State is in a fourth-tier high unemployment period under section 202(b)(3)(B)(iii) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), such account shall be augmented by an amount (in this section referred to as fourth-tier jobseeker allowance) equal to 13 times the amount of the weekly jobseeker allowance (as determined under subsection (b) of this section, taking into account the application of paragraph (4) of such subsection but not taking into account the application of paragraphs (2), (3), and (5) of such subsection). (B) Limitation The account of an individual may be augmented not more than once under this paragraph. (d) Payments to States (1) In general (A) Full reimbursement There shall be paid to each State an amount equal to 100 percent of— (i) the total amount of jobseeker allowances paid to individuals by the State pursuant to this section; and (ii) any additional administrative expenses incurred by the State by reason of making such payments (as determined by the Secretary of Labor). (B) Terms of payments Sums payable to any State under this section shall be payable, either in advance or by way of reimbursement (as determined by the Secretary of Labor), in such amounts as the Secretary of Labor estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary of Labor finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts that should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary of Labor and the State agency of the State involved. (2) Certifications The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section. (3) Deposit Sums payable to any State under this section shall be deposited in the account of such State in the Unemployment Trust Fund. Amounts deposited under preceding sentence may only be used by the State for the payment of jobseeker allowances under this section. (4) Funding There are appropriated from the general fund of the Treasury, without fiscal year limitation, such sums as may be necessary for purposes of this section. (e) Fraud and overpayments (1) In general If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received an amount of jobseeker allowances to which such individual was not entitled, such individual— (A) shall be ineligible for further jobseeker allowances in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and (B) shall be subject to prosecution under section 1001 of title 18, United States Code. (2) Repayment In the case of individuals who have received amounts of jobseeker allowances to which they were not entitled, the State shall require such individuals to repay the amounts of such jobseeker allowances to the State agency, except that the State agency shall waive such repayment if it determines that— (A) the payment of such jobseeker allowance was not based on fraud on the part of any such individual; and (B) such repayment would be contrary to equity and good conscience. (3) Recovery by State agency (A) In general The State agency may recover the amount to be repaid, or any part thereof, by deductions from any jobseeker allowance payable to such individual or from any unemployment compensation payable to such individual under any State or Federal unemployment compensation law administered by the State agency or under any other State or Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the 3-year period after the date such individual received the payment of the jobseeker allowance to which they were not entitled, in accordance with the same procedures as apply to the recovery of overpayments of regular unemployment benefits paid by the State. (B) Opportunity for hearing No repayment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the individual, and the determination has become final. (4) Review Any determination by a State agency under this section shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent. (5) Deposit in State unemployment fund Any amount recovered by a State agency pursuant to this section shall be deposited in the account of such State in the Unemployment Trust Fund. Amounts deposited under preceding sentence may only be used by the State for the payment of jobseeker allowances under this section. (f) Payment To be disregarded for purposes of all Federal and Federally assisted programs A jobseeker allowance payment shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 12 months, for purposes of determining the eligibility of the recipient (or the recipient’s spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (g) Regulations Not later than 3 months after the date of enactment of this section, the Secretary of Labor shall issue regulations to carry out this section.. (b) Permissible use of funds (1) Internal Revenue Code of 1986 Section 3304(a)(4) of the Internal Revenue Code of 1986, as amended by section 215, is amended— (A) in subparagraph (G)(ii), by striking and at the end; (B) in subparagraph (H), by inserting and at the end; and (C) by adding at the end the following: (I) amounts may be withdrawn for the payment of jobseeker allowances under section 3304C;. (2) Social Security Act Section 303(a)(5) of the Social Security Act, as amended by section 215, is amended by striking; and at the end and inserting: Provided further, That amounts may be withdrawn for the payment of jobseeker allowances under section 3304C; and. (c) Conforming amendment The table of sections for chapter 23 of the Internal Revenue Code of 1986, as amended by section 215 and 218, is amended inserting after the item relating to section 3304B the following new item: Sec. 3304C. Jobseeker allowance.. (d) Effective date The amendments made by this section shall apply to weeks of unemployment beginning on or after the earlier of— (1) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (2) January 1, 2027.