Sequestration Will Reduce Railroad Unemployment and Sickness Benefits Due to End of COVID-19 National Emergency

The Budget Control Act of 2011, and a subsequent sequestration order to implement mandated cuts, requires that railroad unemployment and sickness insurance benefits be reduced by a set percentage. However, effective January 3, 2021, the Continued Assistance to Rail Workers Act of 2020 exempted those benefits from sequestration until 30 days after the end of the national emergency related to the COVID-19 pandemic.

With Congress passing legislation declaring an immediate end to the national emergency, which President Biden signed on April 10, 2023, sequestration will resume for railroad unemployment and sickness benefits effective May 10, 2023.

Click here to read the full release from the RRB.