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Emergency Unemployment Compensation Sequestration – June 2013

Updated : August 4th, 2020

Of all the budget decisions made over the past years in the history of the United States “Sequestration” comes as the hardest blow.

Sequestration is across the board budget cuts to many federal sponsored programs including the Emergency Unemployment Compensation (EUC) to reduce spendings of the government and channelize the funds towards other programs. These monetary reductions were made under the Budget Control Act of 2011.

Emergency Unemployment Compensation (EUC) are benefits available for eligible job-seekers who are still looking for work when their regular state unemployment insurance runs out after 26 weeks in most states. The maximum number of weeks to receive EUC benefits varies from 14 weeks to 47 weeks which is based on the state’s unemployment rate.

The cuts are to be made on the federal benefits only and the schemes sponsored by states will remain unaffected.

This sequestration is going to affect 2 million people who are currently receiving EUC. Due to this fiscal cliff the improving unemployment rate is likely to take a stroll and hit new highs.

The U.S. Department of Labor estimates that 3.8 million unemployed workers would be affected by the sequester mandated benefit cuts during the remainder of the 2013, with the average recipient losing $400.

These cuts will not only make life even harder for many long term unemployed workers already suffering from the loss of jobs and incomes, but will also take more than $2 billion in consumer spending out of an economy still struggling with weaker demand. That’s likely to hurt local businesses and jobs, particularly in states with high levels of unemployment.

Organizations and companies have begun laying off workers, while many more have decided not to staff vacant positions. Schools on military bases are contemplating four-day weekly schedules.

Sequester cuts will impact education, public health, law enforcement, defense, food safety, aviation safety and security, and the national parks programs. It cuts total $85.4 billion, including $42.7 billion being cut from the defense budget and $28.7 billion in domestic discretionary spending.

These cuts will mean an automatic 6.4 percent cut to the most programs like National Institute of Health (NIH) and the National Science Foundation (NSF), with no departmental or agency able to control how the sequester impacts individual programs.

Cuts of this level will be devastating to the public health infrastructure. It was reported that some hospitals have been turning away cancer and HIV patients as they can no longer afford to treat them with expensive procedures.

From an economic point of view this immediate and severe cuts have been broadly seen as a terrible policy measure. Sharp fiscal contraction in a weak economy is known to have negative multiplier effect on output resulting in slow growth. However the policy is expected to reap positive results in the years to come.

Similar policy of harsh government spending cuts imposed in countries like Spain, Greece, Ireland, Italy and Portugal has produced soaring and depressing rate of unemployment and deepening economic crisis.

Here is a table which contains more information on cuts being made state wise. Considering the unemployment rate and population of each state the government has divide the sequestration process into four quarters and depending on the quarter the rate and the date of implementation is different.

State EUC Sequestration Date Of Implementation
California 17.7% April 28
Illinois 16.8 % May 27
Nebraska 19.38% May 5
North Dakota 18.03% April 28
South Dakota 16.8% June 2
Pennsylvania 10.7% April 6
Maryland 22.2% July 6
Rhode Island 12.2% April 21
Massachusetts 12.8% April 28
Mississippi 12.8% April 28
Alaska 23.2% May 19
Arizona 16.8% June 2
Wyoming 23.08% May 26
Washington 21 % May 19
New Jersey 22.2% June 30
New Mexico 25% June 2
Ohio 16.36% May 5
Utah 17% April 28
Virginia 14.2% May 12
Colorado 18.22% April 28
Connecticut 19.2% June 16
Montana 19.58% May 5
New Hampshire 16.7% April 28
Alabama 12.8% April 28
Delaware 12.8% April 28
Hawaii 12.8% April 28
Massachusetts 12.8% April 28
Mississippi 12.8% April 28
Rhode Island 12.2% April 21
Texas 10.7% March 31

NOTE: Please note that each state needs to implement these changes and it will help to check the state unemployment site to know more about the amount reduced. This sequestration will only affect recepients of Emergency Unemployment Compensation. State unemployment benefit recepients remain unaffected.

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  1. I was approved for extended benefits after exhausting PUA and the 26 weeks UI in Ohio. I have been looking for work, but also have had major health challenges and am finding getting back to “normal” slow going. I have a EB approval letter, and am currently receiving payments. When I look at the EB payment stub it shows my payment amount, and then the remaining approved amount (diminished by the weekly payment). So… do I get to exhaust the balance stated (which would take the weekly payments into 2021), or do my extended benefit payments expire on Dec 26 with the Federal program?

  2. I’m considering moving from MA to another state to pursue available work. I CAN NOT get hold of a human or find any info online about the ramifications of transferring my residence. Is there any information available that I’m missing or anyone having gone through the process of moving while collecting unemployment?

  3. I accidentally filed my UI unemployment amount wrong. I wrote that I made 25k last year when it was more like 12k with the pandemic problems. The issue was that I included my student loans in my income amount. Now I’m concerned about it being audited and how to fix this. I know I will have to pay back an amount but this is a lot of stress. I cannot get ahold of anyone in a timely manner and so I am wondering if anyone has an idea as to how to fix this appropriately?

    1. Ashley,

      I suggest you check the “Resources” section of the official website of the Unemployment Office or consider the option of visiting an office in the vicinity if feasible.

  4. my benefit in missouri ru has exhausted they send me a letter about my peuc until dec 26 2020 how long it take to receive peuc

    1. Debra,

      The processing will certainly take a couple of weeks of time owing to the pendency. Please keep checking/following up at regular intervals.

  5. So I have been getting ue for 6 months and on Oct 21 I had a fact finding issue found and cleared after taking a month, I got put on hold I got nothing no benefits nothing because I am on hold until cleared up and it was another month later in my favor, I’ve been without payment since Oct 21 since then I have been on HOLD, I am beyond pissed, I call every Fri I see the letter I received saying its in my favor that says I am Monetary Eligible-yet I still have 6 payments on hold. I call DEO and I talk, I beg and I get told “we are working on it”, the letter is in my favor I am poor not rich I am poor Why how do you people get away with this

    1. I’m having similar issue.. I was accepted and was receiving payments for three months.. then it was stopped 5 weeks ago to check a possibility of fraud.. there was a determination to confirm my identity again.. this after the same office gives me insurance and food help and was taking partial of money to pay two different child support claims.. they don’t think I’m who I say I am.. and it just sits there pending.. what can be done to get this fixed.

  6. Hello

    I’m 59 years old and was laid off in March 2020 due to Covid.
    In June 2020 I was advised my job was eliminated and there is no chance of me
    Being brought back. I’m collecting UI since March.

    Pondering the thought of taking my early retirement pension as I can’t survive on
    UI any longer. My pension is of course reduced due to my age. Full pension is age 62.

    If I apply for early reduced pension in this situation, does my UI benefit get decreased? I’m in New York.
    I’m still looking for full time work. No luck.

    Thank you so much
    Lorraine

  7. i was just layed off from my job, i did collect benefits in pa. my job is seasonal igot unemployment payments in jan. to april i had 26 weeks of unemployment , but only used about 13 weeks, and was called back to work. i received 2 weeks of 600 dollars of stimlus money. my question is now that i reopened my 2020 claim . i,m i still elegibe for any more stimlus payments along with my regular unemployment payments.

  8. I am 65 yrs old in California and being layed off in Dec 2020. If I apply for unemployment benefits and collect a company pension, will the pension reduce the unemployment benefits ? If you answer call unemployment what is the department or do you have a phone number for a help line. I have called and get automated questions that do not apply to my situation.
    Cannot get to a live person.

  9. Several years ago I was part of a reduction in force and was early-retired for pension purposes. I count on this small pension ($2K/mo) to supplement my employment which has been inconsistent this past two years. I am filing for UI in IL and I qualify for it, but they are saying my pension reduces my UI benefit to zero. Is that right?

    1. Mike,

      That is partially right. The pension will have an impact on UI benefits. Please check for relevant info on the Unemployment Office’s website.

  10. I have $219.00 left on my UE and still no work due to covid-19 will i be able to get a extension on my UE and will it cover the last two weeks. I request payment tomorrow.

      1. My benefits have expired, still.unemployed due to over 65, wdiebrtes, high blood pressure and have one kidney, Can I get PUA , Cares Act for any assistance

  11. im working at a place i have been layed off from a lot in my career.i got 30 yrs in there so i can retire now but need another job to make it hoping to stay working and get more hours.If i take a new job and get layed off there I will BE DRAWING 1400 A MONTH FROM THE JOB I WORKED 30 YRS would i be able to draw unemployment if the new job lays me off and would it be reduced because of my retirement money of 1400 month.

  12. My bf was laid off in April he got the the 600 to start with now he is only getting the unemployment and no extra when we hear ppl getting 3 checks totaling 40k that might be lies but still that is bullshit.

  13. I Sharon Bland or Sharon Scott or Sharon Ann Mccraw
    Use my phone to claim two of my boyfriends and my own benefits. Is that ok ?

  14. I’m getting pua on employment and it was supposed to be backdated to May 27th when I wasn’t ableable to start my new job and somehow it’s August 24th they said it would be backdated been sending messages and pua people keep saying they have emailed you guys too but nobody gets back to me who do I need to contact about this thank you

  15. I check my checking account balance every week but I cannot tell if I am getting my 300.00 extra unemployment. Also. How can I tell if I got my back time unemployment .

    1. Thelma,

      I did not understand what you meant. Please reach out to the Unemployment Office for precise answers to all your questions.

  16. I have exhausted my UI and all extensions. Not eligible for Fed Ed. Does EDD open a PUA claim for me. Or do I have to aoole for it. Its been past 30 days since receiving my Fed Ed denial letter.

  17. i have been unemployed for the whole year almost and since i have been trying to distance myself to better my all around health, it took me this long to file for benefits, i was hoping to get back pay all the way to the beginning.

    1. Zach,

      To qualify, the claimant is required to have sufficient earnings/employment during the “Base Period”. Please use the “Benefits Calculator” available on this website for more.

  18. Thank you o much for investigating this. When I received an overpayment statement and my benefits where stopped I felt my heart drop to my stomach. Already being evicted by a slumlord and now no income, i had to start working when i feel very at risk for getting the virus because of pre-existing conditions and the reason for filing in the first place. i am a cosmetologist and considered non-essential. I feel utterley hopeless and helpless in this situation.

  19. I cannot contact anyone in the unemployment offices because the phone hangs up on me in all cases after listening over and over the recorded message. I have called three numbers .

    I have received pandemic unemployment since March 31st. There was a pending adjudication but I never received any questions, letters nor emails about it and I was approved and paid. Now…this is what the website says:
    7 of 7 entries
    Issue Identification Number Employer Name Issue Type Status Date Mailed Level
    0002 7693 59-01
    PUA Pending 11/16/2020 Adjudication
    0002 4773 71-01
    Program Integrity Mailed 11/6/2020 Adjudicati
    Claimant Inbox
    Select the Search button to display your action items. To narrow your search, input issue date range below and select the Search button.
    Issue Date: From: To: 11/6/2020 to 11/16/2020
    Inbox
    • Below are the items that require your attention and that you need to take action on for your claim.
    • Select the Document ID
    I need this money to survive as others do while I am trying to re-establish any contract freelance work I am capable of doing….I report my small jobs as I get them but they do not come close to equaling my unemployment as of yet. Please tell me where I can go to find out what is needed here.

    1. Again basically I’ve also been put on hold for a ridiculously stupid reason.. Why can’t this issue be quickly handled. Is the any where we can get action if we already were receiving benefits and have been stopped suddenly

      1. Greg,

        I can understand your frustration. The Unemployment Office might be inundated with pending requests. Please visit the website to find the answers.

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