Dear Colleague Letter
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February 9, 2021 The Honorable Nancy Pelosi Speaker of the House United States Capitol Washington, DC 20515 Dear Speaker Pelosi and Leader McCarthy: As you proceed in preparing an additional economic relief package which Americans desperately need, we ask that you extend and enhance the Mixed Earner Unemployment Compensation (MEUC) program. The MEUC has provided a vital lifeline for millions of “mixed earners” who were disadvantaged by an unintended loophole in the CARES Act passed in March 2020, and as Congress prepares to act again, there is a continued need to assist this population. As you know, mixed earners are those who primarily earn income as a 1099 independent contractor, but who also earn a smaller amount of traditional W-2 income. For this group, by earning W-2 income they become ineligible for the Pandemic Unemployment Assistance (PUA) program, but their relatively low level of W-2 income meant they often qualified for extremely small weekly benefits. We are deeply grateful that in December, Congress took an important step to assist mixed earners. By creating the Mixed Earner Unemployment Compensation program (Sec. 1601), Congress extended important aid to millions of mixed earners. The MEUC provides a flat $100 weekly benefit for mixed earners with at least $5000 in 1099 income. In combination with the FPUC (Federal Pandemic Unemployment Compensation) payment of $300 weekly, this benefit has helped unemployed mixed earners stay afloat, pay their rent or mortgage, and put food on the table. It’s a testament to the need for this program that even though Congress made state participation voluntary, only two states have declined to participate. As the House considers an additional round of economic relief, we ask that you once again ensure that mixed earners receive the benefits they deserve and are not disadvantaged through no fault of their own. First, we request that any relief package extend the MEUC program beyond March 14. It is clear that there will be a continued need to support unemployed Americans. We hope that at a minimum, the MEUC program should be extended for the same duration and terms of other unemployment programs under consideration. We greatly appreciate that the draft legislation recently released by the Ways and Means Committee would extend the MEUC benefit until August 29. We ask that you also consider increasing the weekly MEUC benefit from $100 to $150. The reasons for this request are twofold. We believe that $150 would more accurately reflect the loss in benefits for the median mixed earner due to their ineligibility for the PUA program, though many have missed out on much more. The $100 supplement is greatly helpful, but falls short of making many claimants whole. In addition, the increased benefit would partially respond to the fact that during the four months the FPUC payments lapsed, many long term unemployed mixed earners received their states minimum payment. To provide just one illustrative example, one music teacher received $19 per week from her state workforce agency when the PUA program would have qualified her for $300/week. Many mixed earners in 35 states were also shut out of the six-week FEMA LWA supplement because their low level of benefits fell below $100/week. While an enhanced MEUC supplement will not replace these lost benefits, it will provide vital additional assistance to claimants who are most desperately in need. The result of these unintended effects has been devastating for many mixed earners, and the effects will be felt for years. We will continue to support relief efforts now and in the future that address the financial and personal loss experienced by these individuals. Thank you for your consideration and your continued leadership through these difficult times. Sincerely, Adam B. Schiff Judy Chu Ro Khanna Marcy Kaptur Donald S. Beyer Jr. Eleanor Holmes Norton Grace Napolitano Zoe Lofgren Jerrold Nadler André Carson Alan Lowenthal Yvette D. Clarke Jan Schakowsky Jim Cooper Joe Neguse Darren Soto Susan Wild Diana DeGette Mike Doyle Brad Sherman Katie Porter Jesús G. “Chuy” García Jared Huffman Bill Foster Julia Brownley Hakeem Jeffries Henry C. "Hank" Johnson, Jr. Tony Cárdenas Bonnie Watson Coleman J. Luis Correa James P. McGovern Rashida Tlaib Barbara Lee Grace Meng Norma Torres Nanette Diaz Barragán Dwight Evans John Garamendi Paul D. Tonko David N. Cicilline Chellie Pingree Cindy Axne Debbie Wasserman Schultz .