In separate press releases, the governors of the following States announced their withdrawal from the various federal UI programs created in response to the pandemic:

  • Alabama
  • Arkansas
  • Idaho
  • Iowa
  • Mississippi
  • Missouri
  • Montana
  • North Dakota
  • South Carolina
  • Tennessee
  • Utah
  • Wyoming

 

While these federal programs contain a sunset date of September 4, 2021, these twelve states have chosen to end their participation early.

As of this writing, the following twelve states will no longer participate in various programs included in the American Rescue Plan Act (ARPA). The programs include:

Federal Pandemic Unemployment Compensation (FPUC) – additional $300/week

Pandemic Unemployment Assistance (PUA) – program for those not covered under   regular UI 

Pandemic Emergency Unemployment Compensation (PEUC) – 25-week extension of benefits

Mixed Earner Unemployment Compensation (MEUC) – combined covered/non-covered earnings

Emergency Unemployment Relief for Governmental Entities and Non-Profit Organizations – 75% relief of benefit charges

 

Each of the announcements has only recently been released; however, highlights of the state-specific nuances are outlined below. Unless otherwise noted, these states will continue to administer the 75% relief of charges to eligible reimbursing employers per the American Rescue Plan Act (ARPA). Details are as follows:

  • Alabama– effective June 19, 2021, the additional $300 bump up provided in the FPUC program and the extended weeks of benefits under the PEUC program will end. The press release from Governor Ivy can be found here.
  • Arkansas– this includes the sunset of the $300 federal bump up, the paid waiting week, and the 75% relief of charges to reimbursing employers. A copy of the brief press release can be found by clicking here. At the bottom of the press release is a link to a letter sent to the UI Director. Additional information can be found in that document.
  • Idaho– effective June 19, 2021, the additional $300 bump up provided in the FPUC program and the extended weeks of benefits under the PEUC program will end. The press release from Governor Little can be found here.
  • Iowa– IWD announced it will opt out of several federal programs effective June 12, 2021. Included are the additional $300 bump up provided in the FPUC program and the extended weeks of benefits under the PEUC program. Returning to existing pre-COVID statutes and regulations, charging of benefits to employers will resume as of this date. Under ARPA, starting June 12, 2021, reimbursing employers will begin receiving 75% federal relief. Click here for the announcement.
  • Mississippi– per an announcement on the MDES site, the $300 federal bump up per the FPUC and additional weeks of benefits under the PEUC will be discontinued effective June 12, 2021.
  • Missouri– this includes the sunset of the $300 federal bump up, the 100% reimbursement for Short Time Compensation programs, and the 75% relief of charges to reimbursing employers and is effective June 12, 2021. A copy of the brief press release can be found by clicking here.
  • Montana– the additional $300 federal bump up is being discontinued and replaced with a one-time $1,200 return to work bonus for eligible claimants. The work search requirements will also be reinstated as of 6/27/2021. Further details about this matter can be found by clicking here.
  • North Dakota– per an announcement on Governor Burgum’s website, the $300 federal bump up per the FPUC and additional weeks of benefits under the PEUC will be discontinued effective June 19, 2021.
  • South Carolina– will discontinue the $300 federal bump up and reinstate the work search requirements effective 6/30/2021. The state will also, per the Governor’s declaration, cease participating in the Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations which provides 75% relief of charges to these reimbursing employers. Available information on this announcement can be found by clicking here.
  • Tennessee– effective July 3, 2021, the additional $300 bump up provided in the FPUC program and the extended weeks of benefits under the PEUC program will end. Please click here to be taken to the press release from Governor Lee.
  • Utah– Gov. Spencer Cox announced the discontinuation of the federal unemployment programs tied to the pandemic as part of the federal stimulus package. The $300 weekly stimulus payment, as well as the other federal unemployment programs, will end June 26, 2021. The announcement can be found here.
  • Wyoming– effective June 19, 2021, the state will opt out of participation in the PEUC and FPUC programs. Governor Gordon’s press release can be found here.

 

It is important to note that every state signed an agreement with the USDOL back in 2020 to administer the various relief provisions in the CARES Act. Those agreements have remained in effect with each extension, including the recent American Rescue Plan Act. The agreement contains language permitting states to opt out of pandemic relief provisions, as follows:

As set forth in Section XI of the Agreement, a state may terminate specific provisions within the agreement listed in Section XIV or terminate the agreement itself with thirty days’ written notice if it chooses to no longer administer such provisions.”