Extension & Tax Exemption of Federal Unemployment Benefits

These programs will be administered, and benefits distributed, by the Texas Workforce Commission which will interpret this law and define eligibility for all benefits administered under these programs

  • Federal Pandemic Unemployment Compensation (FPUC) is extended for 25 weeks through September 4, 2021. During that period FPUC will provide federal funding for a $300 increase to all UI weekly benefits resulting from the pandemic.
  • Pandemic Unemployment Assistance (PUA) is expanded by 29 weeks (from 50 to 79 possible weeks), extending the deadline for new and existing claims to be paid until September 4, 2021. PUA provides federal funding to states for weekly unemployment insurance (UI) benefits to the self-employed and independent contractors (1099 “gig” workers), as well as those who have exhausted all other UI benefits, who are unemployed as a result of the pandemic.
  • Pandemic Emergency Unemployment Compensation (PEUC) is expanded by 29 weeks (from 24 to 53 possible weeks), extending the deadline for new and existing claims to be paid until September 4, 2021.  PEUC provides federal funding for weekly UI benefits of claimants who have exhausted their state UI benefits.
  •  Unemployment benefit payments will be tax-free for the first $10,200 of benefits for households with annual incomes less than $150,000.
  • Emergency Unemployment Relief for Non-Profits is extended by 25 weeks until September 4, 2021, and now pays 75% (up from 50%) of unemployment expenses incurred by nonprofits due to the pandemic.