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Congress·In Committee·28 days ago

House Republicans' CLOSE Act Would End Pandemic Unemployment Benefits, Claw Back Unused Funds

Also known as: CLOSE Act

Legislative Progress

Filed
Review
House
Senate
President

Impacts

Negative Impacts(5)
Unemployment Benefits
Hurts
Gig Worker
Hurts
Small Business Owner
Hurts
Housing Assistance
Hurts
Renter
Hurts

Key Points

  • Congress would end remaining pandemic-related unemployment benefit payments 30 days after the bill becomes law.
  • It would also take back (rescind) any unspent federal money that was set aside for these pandemic unemployment programs.
  • States could still get federal money to cover wrap-up and administrative costs, even after benefit payments stop.
  • States would be blocked from starting or restarting agreements to pay the extra federal pandemic unemployment benefits after the bill becomes law.
  • People who still qualify under these old pandemic programs could see their payments stop once the 30-day cutoff hits, depending on timing.
Labor EmploymentEconomy

Milestones

2 milestones2 actions
Feb 2, 2026House

Referred to the House Committee on Ways and Means.

Feb 2, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Immediately after enactment; cutoff is 30 days later

30-day countdown starts if the CLOSE Act is enacted

People who are depending on CARES unemployment programs would have a hard cutoff coming soon, so they may need to switch to regular state unemployment (if eligible) or find other help.

30 days after enactment

CARES Pandemic Unemployment Assistance payment authority ends (except limited admin funding)

After the cutoff, the federal government could not send new PUA benefit payments under the CARES section, even if a claim is approved later.

No new state agreements on enactment; payments stop 30 days after enactment

CARES Federal Pandemic Unemployment Compensation / Mixed Earner payment authority ends (except limited admin funding)

After the cutoff, the extra federal add-on payments under this CARES section could not be paid, and states cannot newly sign up again for this program on or after enactment.

30 days after enactment

Pandemic Emergency Unemployment Compensation CARES provisions are repealed and take effect

The CARES extension-related rules named in the bill would no longer be in place, reducing the chance of late or renewed payments tied to those sections.

30 days after enactment

Unspent CARES unemployment funds are officially canceled (rescinded)

Leftover federal money set aside for these CARES unemployment programs would be pulled back and unavailable for future benefit payments, which can limit options for paying late claims or corrections.

Source Information

Document Type

Congressional Bill

Official Title

CLOSE Act

Bill NumberHR 7306
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(3)
R: 3

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.