The U.S. Senate did not act before its recess on the proposed short-term extension of the unemployment compensation provisions in the American Recovery and Reinvestment Act that would have extended the period for individuals to qualify for emergency unemployment compensation from April 4 to May 5.

Although the Senate is expected to take it up in an expedited fashion when it returns and will seek to make legislative changes with retroactive effective dates, the challenge of finding offsets for the continued extensions is an ongoing issue, particularly as the number of individuals filing for unemployment compensation continues to slowly drop.

What’s more, during Congress’s two-week absence (until April 9), there will be a gap during which the special provisions will not be in effect. This will once again create an administrative dilemma for states in deciding how to handle applications for EUC, weekly claims, federal administrative compensation and the 100% reimbursement for regular extended benefits.

Technically, the agencies may not legally make determinations of EUC applications during this period, although they may choose to accept applications pending a decision on retroactive application.