The Act provides for up to 13 weeks of temporary extended unemployment benefits for eligible displaced workers. The extension applies in any state that enters into an agreement with the Secretary of Labor to provide these extended benefits. The extended benefits are available for workers who applied for unemployment on or after March 15, 2001, and have no remaining unemployment benefits.

This provision follows current law for certain eligibility rules for benefits. In states that experience a high rate of unemployment, workers who have used their 13 weeks of extended unemployment benefits may be eligible for an additional 13 weeks. All extended benefits will be federally funded and available through December 31, 2002, or until a state terminates its agreement (if sooner).

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability to specific situations is to be determined through consultation with your tax adviser.