42 U.S.C. § 1101 — Employment security administration account

**(a) Establishment** There is hereby established in the Unemployment Trust Fund an employment security administration account. **(b) Amount credited to Account; transfer of funds; adjustments; repayment of internal revenue refunds** (1) There is hereby appropriated to the Unemployment Trust Fund for credit to the employment security administration account, out of any moneys in the Treasury not otherwise appropriated, for the fiscal year ending June 30, 1961, and for each fiscal year thereafter, an amount equal to 100 per centum of the tax (including interest, penalties, and additions to the tax) received during the fiscal year under the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.] and covered into the Treasury. (2) The amount appropriated by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Unemployment Trust Fund and credited to the employment security administration account. Each such transfer shall be based on estimates made by the Secretary of the Treasury of the amounts received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred, to the extent prior estimates (including estimates for the fiscal year ending June 30, 1960) were in excess of or were less than the amounts required to be transferred. (3) The Secretary of the Treasury is directed to pay from time to time from the employment security administration account into the Treasury, as repayments to the account for refunding internal revenue collections, amounts equal to all refunds made after June 30, 1960, of amounts received as tax under the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.] (including interest on such refunds). **(c) Administrative expenditures; necessary expenses; quarterly transfer of funds; adjustments; limitation; estimate of net receipts** (1) There are hereby authorized to be made available for expenditure out of the employment security administration account for the fiscal year ending June 30, 1971, and for each fiscal year thereafter— (A) such amounts (not in excess of the applicable limit provided by paragraph (3) and, with respect to clause (ii), not in excess of the limit provided by paragraph (4)) as the Congress may deem appropriate for the purpose of— (i) assisting the States in the administration of their unemployment compensation laws as provided in subchapter III (including administration pursuant to agreements under any Federal unemployment compensation law), (ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 49–49n), and (iii) carrying into effect [section 4103 of title 38](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section4103&num=0&edition=prelim); (B) such amounts (not in excess of the limit provided by paragraph (4) with respect to clause (iii)) as the Congress may deem appropriate for the necessary expenses of the Department of Labor for the performance of its functions under— (i) this subchapter and subchapters III and XII of this chapter, (ii) the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.], (iii) the provisions of the Act of June 6, 1933, as amended [[29 U.S.C. 49](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section49&num=0&edition=prelim) et seq.], (iv) chapter 41 (except section 4103) of title 38, and (v) any Federal unemployment compensation law. The term “necessary expenses” as used in this subparagraph (B) shall include the expense of reimbursing a State for salaries and other expenses of employees of such State temporarily assigned or detailed to duty with the Department of Labor and of paying such employees for travel expenses, transportation of household goods, and per diem in lieu of subsistence while away from their regular duty stations in the State, at rates authorized by law for civilian employees of the Federal Government. (2) The Secretary of the Treasury is directed to pay from the employment security administration account into the Treasury as miscellaneous receipts the amount estimated by him which will be expended during a three-month period by the Treasury Department for the performance of its functions under— (A) this subchapter and subchapters III and XII of this chapter, including the expenses of banks for servicing unemployment benefit payment and clearing accounts which are offset by the maintenance of balances of Treasury funds with such banks, (B) the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.], and (C) any Federal unemployment compensation law with respect to which responsibility for administration is vested in the Secretary of Labor. If it subsequently appears that the estimates under this paragraph in any particular period were too high or too low, appropriate adjustments shall be made by the Secretary of the Treasury in future payments. (3) (A) For purposes of paragraph (1)(A), the limitation on the amount authorized to be made available for any fiscal year after June 30, 1970, is, except as provided in subparagraph (B) and in the second sentence of subsection (f)(3)(A), an amount equal to 95 percent of the amount estimated and set forth in the budget of the United States Government for such fiscal year as the amount by which the net receipts during such year under the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.] will exceed the amount transferred under [section 1105(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1105/b&num=0&edition=prelim) during such year to the extended unemployment compensation account. (B) The limitation established by subparagraph (A) is increased by any unexpended amount retained in the employment security administration account in accordance with subsection (f)(2)(B). (C) Each estimate of net receipts under this paragraph shall be based upon a tax rate of 0.6 percent. (4) For purposes of paragraphs (1)(A)(ii) and (1)(B)(iii) the amount authorized to be made available out of the employment security administration account for any fiscal year after June 30, 1972, shall reflect the proportion of the total cost of administering the system of public employment offices in accordance with the Act of June 6, 1933, as amended [[29 U.S.C. 49](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section49&num=0&edition=prelim) et seq.], and of the necessary expenses of the Department of Labor for the performance of its functions under the provisions of such Act, as the President determines is an appropriate charge to the employment security administration account, and reflects in his annual budget for such year. The President’s determination, after consultation with the Secretary, shall take into account such factors as the relationship between employment subject to State laws and the total labor force in the United States, the number of claimants and the number of job applicants, and such other factors as he finds relevant. (5) (A) There are authorized to be appropriated out of the employment security administration account to carry out program integrity activities, in addition to any amounts available under paragraph (1)(A)(i)— (i) $89,000,000 for fiscal year 1998; (ii) $91,000,000 for fiscal year 1999; (iii) $93,000,000 11 So in original. Probably should be followed by “for”. fiscal year 2000; (iv) $96,000,000 for fiscal year 2001; and (v) $98,000,000 for fiscal year 2002. (B) In any fiscal year in which a State receives funds appropriated pursuant to this paragraph, the State shall expend a proportion of the funds appropriated pursuant to paragraph (1)(A)(i) to carry out program integrity activities that is not less than the proportion of the funds appropriated under such paragraph that was expended by the State to carry out program integrity activities in fiscal year 1997. (C) For purposes of this paragraph, the term “program integrity activities” means initial claims review activities, eligibility review activities, benefit payments control activities, and employer liability auditing activities. **(d) Additional tax attributable to reduced credits; transfer of funds** (1) The Secretary of the Treasury is directed to transfer from the employment security administration account— (A) To the Federal unemployment account, an amount equal to the amount by which— (i) 100 per centum of the additional tax received under the Federal Unemployment Tax Act [[26 U.S.C. 3301](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3301&num=0&edition=prelim) et seq.] with respect to any State by reason of the reduced credits provisions of section 3302(c)(3) of such Act [[26 U.S.C. 3302(c)(3)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section3302/c/3&num=0&edition=prelim)] and covered into the Treasury for the repayment of advances made to the State under [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1321&num=0&edition=prelim), exceeds (ii) the amount transferred to the account of such State pursuant to subparagraph (B) of this paragraph. Any amount transferred pursuant to this subparagraph shall be credited against, and shall operate to reduce, that balance of advances, made under [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1321&num=0&edition=prelim) to the State, with respect to which employers paid such additional tax. (B) To the account (in the Unemployment Trust Fund) of the State with respect to which employers paid such additional tax, an amount equal to the amount by which such additional tax received and covered into the Treasury exceeds that balance of advances, made under [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1321&num=0&edition=prelim) to the State, with respect to which employers paid such additional tax. (2) Transfers under this subsection shall be as of the beginning of the month succeeding the month in which the moneys were credited to the employment security administration account pursuant to subsection (b)(2). **(e) Revolving fund; appropriations; advances to Account; repayment; interest** (1) There is hereby established in the Treasury a revolving fund which shall be available to make the advances authorized by this subsection. There are hereby authorized to be appropriated, without fiscal year limitation, to such revolving fund such amounts as may be necessary for the purposes of this section. (2) The Secretary of the Treasury is directed to advance from time to time from the revolving fund to the employment security administration account such amounts as may be necessary for the purposes of this section. If the net balance in the employment security administration account as of the beginning of any fiscal year equals 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account for the preceding fiscal year, no advance may be made under this subsection during such fiscal year. (3) Advances to the employment security administration account made under this subsection shall bear interest until repaid at a rate equal to the average rate of interest (computed as of the end of the calendar month next preceding the date of such advance) borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate. (4) Advances to the employment security administration account made under this subsection, plus interest accrued thereon, shall be repaid by the transfer from time to time, from the employment security administration account to the revolving fund, of such amounts as the Secretary of the Treasury, in consultation with the Secretary of Labor, determines to be available in the employment security administration account for such repayment. Any amount transferred as a repayment under this paragraph shall be credited against, and shall operate to reduce, any balance of advances (plus accrued interest) repayable under this subsection. **(f) Determination of excess in Account; limitation on amount to be retained; use of balance in Account during certain fiscal years; net balance** (1) The Secretary of the Treasury shall determine as of the close of each fiscal year (beginning with the fiscal year ending June 30, 1961) the excess in the employment security administration account. (2) The excess in the employment security administration account as of the close of any fiscal year is the amount by which the net balance in such account as of such time (after the application of [section 1102(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1102/b&num=0&edition=prelim) and paragraph (3)(C) of this subsection) exceeds the net balance in the employment security administration account as of the beginning of that fiscal year (including the fiscal year for which the excess is being computed) for which the net balance was higher than as of the beginning of any other such fiscal year. (3) (A) The excess determined as provided in paragraph (2) as of the close of any fiscal year after June 30, 1972, shall be retained (as of the beginning of the succeeding fiscal year) in the employment security administration account until the amount in such account is equal to 40 percent of the amount of the total appropriation by the Congress out of the employment security administration account for the fiscal year for which the excess is determined. Three-eighths of the amount in the employment security administration account as of the beginning of any fiscal year after June 30, 1972, or $150 million, whichever is the lesser, is authorized to be made available for such fiscal year pursuant to subsection (c)(1) for additional costs of administration due to an increase in the rate of insured unemployment for a calendar quarter of at least 15 percent over the rate of insured unemployment for the corresponding calendar quarter in the immediately preceding year. (B) If the entire amount of the excess determined as provided in paragraph (2) as of the close of any fiscal year after June 30, 1972, is not retained in the employment security administration account, there shall be transferred (as of the beginning of the succeeding fiscal year) to the extended unemployment compensation account the balance of such excess or so much thereof as is required to increase the amount in the extended unemployment compensation account to the limit provided in [section 1105(b)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1105/b/2&num=0&edition=prelim). (C) If as of the close of any fiscal year after June 30, 1972, the amount in the extended unemployment compensation account exceeds the limit provided in [section 1105(b)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1105/b/2&num=0&edition=prelim), such excess shall be transferred to the employment security administration account as of the close of such fiscal year. (4) For the purposes of this section, the net balance in the employment security administration account as of any time is the amount in such account as of such time reduced by the sum of— (A) the amounts then subject to transfer pursuant to subsection (d), and (B) the balance of advances (plus interest accrued thereon) then repayable to the revolving fund established by subsection (e). The net balance in the employment security administration account as of the beginning of any fiscal year shall be determined after the disposition of the excess in such account as of the close of the preceding fiscal year.