S.1761 - Ending Unemployment Payments to Jobless Millionaires Act of 2025 (119th Congress)
Summary
The "Ending Unemployment Payments to Jobless Millionaires Act of 2025" aims to prevent individuals with wages exceeding $1,000,000 in their base period from receiving federal unemployment benefits. It mandates self-certification by applicants and verification by state agencies. The bill also prohibits the Secretary of Labor from limiting a state's ability to disqualify high-income individuals from receiving unemployment compensation.
Expected Effects
The act would reduce federal expenditures on unemployment benefits by preventing payments to high-income individuals. States would be required to implement verification procedures, potentially increasing administrative costs. The act could also incentivize high-income individuals to seek alternative forms of income or insurance.
Potential Benefits
- Reduces government spending by preventing unemployment payments to high-income earners.
- Ensures that unemployment benefits are targeted towards those who genuinely need them.
- May incentivize high-income individuals to seek alternative forms of income protection.
- Could free up resources for other social programs or tax reductions.
- Promotes fiscal responsibility by addressing potential misuse of unemployment funds.
Most Benefited Areas:
Potential Disadvantages
- May create additional administrative burden for state agencies through verification processes.
- Could be perceived as unfairly targeting a specific group of individuals based on income.
- The definition of "wages" may need clarification to avoid unintended consequences.
- Potential for legal challenges based on equal protection arguments.
- The impact on overall unemployment rates is likely to be minimal, given the small number of affected individuals.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general principles of fiscal responsibility and promoting the general welfare (Preamble). Congress has the power to tax and spend for the general welfare, and this bill could be seen as an effort to ensure that unemployment funds are used efficiently. However, the bill must also adhere to the equal protection principles, ensuring that any classifications are rationally related to a legitimate government purpose. The bill does not appear to infringe on any specific constitutional rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).