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                Gongesssoa
              Research Service






COVID-19: Supplementing Unemployment

Insurance Benefits (Federal Pandemic

Unemployment Compensation vs. Lost Wages

Assistance)



August   31, 2020
Among  other temporary Unemployment Insurance (UI) provisions authorized under the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act; P.L. 116-136; enacted March 27, 2020), Federal
Pandemic Unemployment Compensation (FPIUC) provided an additional, federally financed $600 weekly
benefit that augmented all UI benefits from March 29, 2020, until July 25, 2020, for most states (July 26,
2020, for New York). The FPUC authority is now expired.
On August 8, 2020, President Donald Trump issued a presidential memorandum authorizing other needs
assistance (ONA) under Section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (StaffordAct; P.L. 93-288, as amended; 42 U.S.C. §5174(e)(2)) for lost wages. As described in
Federal Emergency Management Agency (FEMA) guidance, this Lost Wages Assistance (LWA) program
provides grants to states to supplement the weekly benefits of certain eligible UI claimants in
participating states, subject to a cost sharing requirement. LWA grants may be paid in the amount of $300
a week in entirely federal funds; or, if a state chooses to contribute an additional $100 a week in state
funds, the total is $400 a week. LWA grants are available for weeks of unemployment ending between
August 1, 2020, and December 27, 2020, but the program could terminate earlier if Congress enacts
supplemental COVD-1 9-related unemployment compensation (e.g., reestablishes the FPUC authority) or
certain conditions are met related to the balance of the Disaster Relief Fund (DRF).
This Insight discusses the now-expired FPUC benefit and currently authorized LWA grants to states,
including key differences in authorization and administration, benefit amount, eligibility, and funding. For
a preliminary legal analysis of LWA, see CRS Legal Sidebar LSB 10532, President Trump's Executive
Actions on Student Loans, Wage Assistance, Payroll Taxes, and Evictions: Initial Takeaways.





                                                           Congressional Research Service
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CRS INSIGHT
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