Floor on the minimum replacement of wages

(a) Floor (1) In general Section 3304(a) of the Internal Revenue Code of 1986, as amended by section 501, is amended— (A) in paragraph (19), by striking and at the end; (B) by redesignating paragraph (20) as paragraph (21); and (C) by inserting after paragraph (19) the following new paragraph: (20) an individual’s weekly benefit amount is equal to the lesser of— (A) the maximum weekly benefit amount under the State law; or (B) an amount equal to the quotient of— (i) an amount equal to at least 75 percent of the total earnings in the quarter of the individual’s base period with the highest earnings; divided by (ii) 13; and. (2) Effective date The amendments made by paragraph (1) shall apply to weeks of unemployment beginning on or after the earlier of— (A) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (B) the date that is 6 months after the date of a submission of recommendations by the Council under section 101(c)(4)(A) that includes a declaration that a significant labor market disruption has occurred or is likely to occur in a given fiscal year. (b) Payments to States for the increased floor on the minimum replacement of wages Section 903 of the Social Security Act (42 U.S.C. 1103), as amended by section 401(d), is further amended by adding at the end the following new subsection: (k) Reimbursement of State unemployment funds for increased floor on the minimum replacement of wages (1) Subject to paragraph (6), in addition to any other amounts, for weeks of unemployment beginning on or after the date that is 6 months after the date of a submission of recommendations by the Artificial Intelligence Advisory Council under section 101(c)(4)(A) of the Make AI Work for Americans Act that includes a declaration that a significant labor market disruption has occurred or is likely to occur in a given fiscal year, there shall be paid to each State an amount equal to, with respect to any individual for a week, the excess (if any) of— (A) an amount equal to the lesser of— (i) the minimum amount under section 3304(a)(20)(B) for such individual for such week; or (ii) the maximum weekly benefit amount under the State law for such week; over (B) an amount equal to the quotient of— (i) an amount equal to 40 percent of the total earnings in the quarter of such individual’s base period with the highest earnings; divided by (ii) 13. (2) Sums payable to any State under this subsection 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 subsection 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. (3) 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 subsection. (4) Sums payable to any State under this subsection shall be— (A) made by way of transfer of amounts allocated for such purpose from the Artificial Intelligence Horizon Fund under section 101(b) of the Make AI Work for Americans Act); and (B) deposited in the account of such States in the Unemployment Trust Fund. (5) Any amount transferred to the account of a State in the Unemployment Trust Fund under this subsection may be used by such State only in the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. (6) A State shall not be eligible to receive a payment under this subsection if such State decreases the maximum weekly benefit amount under the State law, as described in section 3304(a)(20)(A), in effect as of the date of enactment of this subsection..