--- kind: "section" citation: "15 U.S.C. § 9027" title: "15" title_heading: "Commerce and Trade" number: "9027" heading: "Temporary financing of short-time compensation agreements" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/15/9027" units: - "Chapter 116 — Coronavirus Economic Stabilization (cares Act)" - "Subchapter II — Unemployment Insurance Provisions" --- # §9027. Temporary financing of short-time compensation agreements - (a) **Federal-State agreements—** - (1) **In general—** Any [State](/usc/15/9041.md?p=10) which desires to do so may enter into, and participate in, an [agreement](/usc/15/7a.md?p=2) under this section with the [Secretary](/usc/15/9041.md?p=9) provided that such [State](/usc/15/9041.md?p=10)’s law does not provide for the payment of short-time compensation under a short-time compensation program (as defined in [section 3306(v) of title 26](/usc/26/3306.md?p=v)). - (2) **Ability to terminate—** Any [State](/usc/15/9041.md?p=10) which is a party to an [agreement](/usc/15/7a.md?p=2) under this section may, upon providing 30 days’ written notice to the [Secretary](/usc/15/9041.md?p=9), terminate such [agreement](/usc/15/7a.md?p=2). - (b) **Provisions of Federal-State agreement—** - (1) **In general—** Any [agreement](/usc/15/7a.md?p=2) under this section shall provide that the [State](/usc/15/9041.md?p=10) agency of the [State](/usc/15/9041.md?p=10) will make payments of short-time compensation under a plan approved by the [State](/usc/15/9041.md?p=10). Such plan shall provide that payments are made in accordance with the requirements under [section 3306(v) of title 26](/usc/26/3306.md?p=v). - (2) **Limitations on plans—** - (A) **General payment limitations—** A short-time compensation plan approved by a [State](/usc/15/9041.md?p=10) shall not permit the payment of short-time compensation to an individual by the [State](/usc/15/9041.md?p=10) during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the [State](/usc/15/9041.md?p=10) law payable to such individual for a week of total unemployment. - (B) **Employer limitations—** A short-time compensation plan approved by a [State](/usc/15/9041.md?p=10) shall not provide payments to an individual if such individual is employed by the participating [employer](/usc/15/9131.md?p=4) on a seasonal, temporary, or intermittent basis. - (3) **Employer payment of costs—** Any short-time compensation plan entered into by an [employer](/usc/15/9131.md?p=4) must provide that the [employer](/usc/15/9131.md?p=4) will pay the [State](/usc/15/9041.md?p=10) an amount equal to one-half of the amount of short-time compensation paid under such plan. Such amount shall be deposited in the [State](/usc/15/9041.md?p=10)’s unemployment fund and shall not be used for purposes of calculating an [employer](/usc/15/9131.md?p=4)’s contribution rate under [section 3303(a)(1) of title 26](/usc/26/3303.md?p=a-1). - (c) **Payments to States—** - (1) **In general—** There shall be paid to each [State](/usc/15/9041.md?p=10) with an [agreement](/usc/15/7a.md?p=2) under this section an amount equal to— - (A) one-half of the amount of short-time compensation paid to individuals by the [State](/usc/15/9041.md?p=10) pursuant to such [agreement](/usc/15/7a.md?p=2); and - (B) any additional administrative expenses incurred by the [State](/usc/15/9041.md?p=10) by reason of such [agreement](/usc/15/7a.md?p=2) (as determined by the [Secretary](/usc/15/9041.md?p=9)). - (2) **Terms of payments—** Payments made to a [State](/usc/15/9041.md?p=10) under [paragraph (1)](#c-1) shall be payable by way of reimbursement in such amounts as the [Secretary](/usc/15/9041.md?p=9) estimates the [State](/usc/15/9041.md?p=10) will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the [Secretary](/usc/15/9041.md?p=9) finds that the [Secretary](/usc/15/9041.md?p=9)’s estimates for any prior calendar month were greater or less than the amounts which should have been paid to the [State](/usc/15/9041.md?p=10). Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the [Secretary](/usc/15/9041.md?p=9) and the [State](/usc/15/9041.md?p=10) agency of the [State](/usc/15/9041.md?p=10) involved. - (3) **Funding—** There are appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for purposes of carrying out this section. - (4) **Certifications—** The [Secretary](/usc/15/9041.md?p=9) shall from time to time certify to the [Secretary](/usc/15/9041.md?p=9) of the Treasury for payment to each [State](/usc/15/9041.md?p=10) the sums payable to such [State](/usc/15/9041.md?p=10) under this section. - (d) **Applicability—** An [agreement](/usc/15/7a.md?p=2) entered into under this section shall apply to weeks of unemployment— - (1) beginning on or after the date on which such [agreement](/usc/15/7a.md?p=2) is entered into; and - (2) ending on or before September 6, 2021. - (e) **Special rule—** If a [State](/usc/15/9041.md?p=10) has entered into an [agreement](/usc/15/7a.md?p=2) under this section and subsequently enacts a [State](/usc/15/9041.md?p=10) law providing for the payment of short-time compensation under a short-time compensation program that meets the definition of such a program under [section 3306(v) of title 26](/usc/26/3306.md?p=v), the [State](/usc/15/9041.md?p=10)— - (1) shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such [State](/usc/15/9041.md?p=10) law; and - (2) subject to [section 9026(b)(2) of this title](/usc/15/9026.md?p=b-2), shall be eligible to receive payments under [section 9026 of this title](/usc/15/9026.md) after the effective date of such [State](/usc/15/9041.md?p=10) law. - (f) **Definitions—** In this section: - (1) **Secretary—** The term “[Secretary](/usc/15/9041.md?p=9)” means the [Secretary](/usc/15/9041.md?p=9) of Labor. - (2) **State; State agency; State law—** The terms “[State](/usc/15/9041.md?p=10)”, “[State](/usc/15/9041.md?p=10) agency”, and “[State](/usc/15/9041.md?p=10) law” have the meanings given those terms in [section 205](/usc/15/205.md) of the Federal-[State](/usc/15/9041.md?p=10) Extended Unemployment Compensation Act of 1970 ([26 U.S.C. 3304](/usc/26/3304.md) note). ## Source credit (Pub. L. 116–136, div. A, title II, § 2109, Mar. 27, 2020, 134 Stat. 329; Pub. L. 116–260, div. N, title II, § 208, Dec. 27, 2020, 134 Stat. 1956; Pub. L. 117–2, title IX, § 9018, Mar. 11, 2021, 135 Stat. 120.) ## Notes ### Editorial Notes ### References in Text Section 205 of the Federal-State Extended Unemployment Compensation Act of 1970, referred to in subsec. (f)(2), is section 205 of Pub. L. 91–373, which is set out in a note under section 3304 of Title 26, Internal Revenue Code. ### Amendments 2021—Subsec. (d)(2). Pub. L. 117–2 substituted “September 6, 2021” for “March 14, 2021”. 2020—Subsec. (d)(2). Pub. L. 116–260 substituted “March 14, 2021” for “December 31, 2020”.