delete PART 615—EXTENDED BENEFITS IN THE FEDERAL-STATE UNEMPLOYMENT COMPENSATION PROGRAM
This regulation implements the Federal-State Extended Unemployment Compensation Act of 1970, establishing a federal-state program that provides extended unemployment benefits to workers who exhaust regular state unemployment benefits during periods of high unemployment. It defines eligibility criteria, benefit calculation formulas, trigger mechanisms based on unemployment rates, and federal reimbursement policies for states.
This regulation represents federal overreach that distorts labor markets and creates moral hazard. Extended unemployment benefits reduce job-finding urgency, increase structural unemployment, and slow economic recovery by interfering with wage price signals. The program imposes hidden taxes through higher payroll taxes (passed to workers as lower wages and consumers as higher prices), penalizes small businesses disproportionately, and undermines federalism by coercing states into federal compliance. Unintended consequences include dependency, reduced private precautionary savings, and perpetuation of unemployment beyond transitional needs—precisely the outcomes Mises, Hayek, and Friedman warned would result from such interventions.