Unemployment Benefit Calculator: HEALS Act vs. HEROES Act
This calculator estimates your 2020 pandemic unemployment benefits under two competing proposals: the HEALS Act (Senate Republicans) and the HEROES Act (House Democrats). Enter your state, annual salary, and dependents to see your estimated weekly state benefit, each bill's federal supplement, and the total weekly and monthly income you would receive under each scenario. Results reflect the three phases of the HEALS Act and the flat-rate HEROES Act extension.
What are the HEALS Act and HEROES Act?
In the summer of 2020, as the CARES Act's $600/week federal unemployment supplement was set to expire on July 31, Congress debated two competing replacement bills. The HEROES Act (Health and Economic Recovery Omnibus Emergency Solutions Act) was passed by the House of Representatives on May 15, 2020 and would have extended the $600/week Federal Pandemic Unemployment Compensation (FPUC) supplement through January 31, 2021. The HEALS Act (Health, Economic Assistance, Liability Protection and Schools Act) was introduced by Senate Republicans on July 27, 2020 and proposed a two-phase replacement: a flat $200/week from August through early October, then a wage-based formula targeting 70% of prior earnings (with a $500/week federal supplement cap) through December 31. Neither bill passed as written. Congress ultimately enacted a $300/week supplement in the Consolidated Appropriations Act signed in December 2020.
How the HEALS Act 70% wage replacement formula works
Phase 3 of the HEALS Act (effective approximately October 5 through December 31, 2020) replaced the flat-dollar supplement with a formula designed to bring a worker's total unemployment income up to 70% of their prior average weekly wage. The calculation is: Federal supplement = (70% x prior weekly wage) minus state WBA, capped at $500/week with a floor of $0. For example, a worker who earned $1,000/week pre-layoff and receives a $350/week state benefit would get (70% x $1,000) - $350 = $350 in federal supplement, for a total of $700/week. A worker earning $400/week pre-layoff with a $250/week state benefit would get (70% x $400) - $250 = $30 in federal supplement, for a total of $280/week. Higher earners see the formula cap kick in: a worker earning $2,000/week pre-layoff would hit the $500/week federal supplement cap, receiving state WBA + $500. The formula varies by state because each state's unemployment system uses different base wages and divisors.
Estimating your state weekly benefit amount
State unemployment benefits are calculated from your earnings during a "base period" (typically the first four of the last five completed calendar quarters). Most states use a variant of: high-quarter wages divided by a state-specific divisor (usually 21 to 26), then capped between the state minimum and maximum weekly benefit amounts. For example, in California the maximum state WBA was $450/week in 2020, while in Massachusetts it was $823/week. This calculator estimates your state WBA from your annual salary by treating salary/4 as the high-quarter wages figure. For a precise figure, contact your state unemployment office or use their official calculator, as your actual base-period wages may differ from this estimate.
The policy debate: work incentives vs. income replacement
The central disagreement between the two proposals concerned "replacement rates" - the share of prior wages that unemployment benefits replace. Under the CARES Act, the national median replacement rate was approximately 134%, meaning many workers received more in benefits than they had earned working. Republicans argued this created a disincentive to return to work, motivating the wage-cap approach in the HEALS Act. Democrats contended that the economy had not yet recovered sufficiently to reduce benefits, that workers were making reasonable decisions to protect their health during the pandemic, and that a $600 flat supplement was administratively simpler for states overwhelmed with claims. The wage-replacement calculation in HEALS Phase 3 was particularly contentious: every state uses a different UI formula, making consistent 70% replacement difficult to administer without substantial IT upgrades.
HEALS Act vs. HEROES Act unemployment provisions at a glance
| Provision | CARES Act (law) | HEALS Act (Senate, proposed) | HEROES Act (House, proposed) |
|---|---|---|---|
| Federal supplement (peak) | $600/week | $600 (Jul) then $200 (Aug-Oct) | $600/week |
| Phase 2 supplement | N/A | $200/week (Aug 1-Oct 4, 2020) | $600/week (through Jan 31, 2021) |
| Phase 3 supplement | N/A | 70% wage replacement (max $500) | $600/week (through Jan 31, 2021) |
| Federal supplement end date | July 31, 2020 | December 31, 2020 | January 31, 2021 |
| PUA (gig workers) | Up to 39 weeks | Extended to Dec 31, 2020 | Extended to Mar 31, 2021 |
| PEUC extra weeks | +13 weeks | +13 weeks extended | +13 weeks extended |
| Dependent supplement | None | None | None (state programs vary) |
| Total estimated cost | ~$268B (UI portion) | ~$105B (UI portion) | ~$413B (UI portion) |
Both bills were proposed in 2020. Neither was enacted as written; Congress ultimately passed a $300/week supplement in December 2020.
Frequently asked questions
What was the difference between the HEALS Act and HEROES Act for unemployment benefits?
The HEROES Act (House Democrats) extended the CARES Act's $600/week federal supplement through January 31, 2021, keeping benefits flat for all unemployed workers. The HEALS Act (Senate Republicans) reduced the supplement in two phases: a flat $200/week from August through early October 2020, then a formula targeting 70% of prior weekly wages (capped at $500/week federal supplement) through December 31, 2020. For most workers, the HEROES Act provided more total income, but the HEALS formula benefited lower-wage workers less and higher-wage workers more than a flat supplement.
How did the 70% wage replacement formula work under the HEALS Act?
Under HEALS Phase 3 (approximately October-December 2020), the federal supplement was calculated as: (70% of your average weekly wage) minus your state weekly benefit amount, with a cap of $500/week. So if your prior weekly wage was $800 and your state WBA is $300, the target is $560 (70% of $800), and the federal supplement is $560 minus $300 = $260. Your total would be $300 + $260 = $560/week. If your prior wage was very high, the supplement was capped at $500, so total benefits were at most (state WBA + $500).
Did either the HEALS Act or HEROES Act become law?
Neither bill was enacted as proposed. After months of negotiations, Congress passed the Consolidated Appropriations Act of 2021 (signed December 27, 2020), which included a $300/week federal unemployment supplement (half the HEROES amount, $100 above the HEALS Phase 2 rate). This was later supplemented by the American Rescue Plan Act of March 2021, which extended the $300/week supplement through September 6, 2021.
Why did many workers get more than 100% wage replacement under the CARES Act?
The $600/week CARES Act supplement was designed as a round-number emergency measure that could be quickly added to existing state benefits without complex calculations. Because state benefits vary widely (from roughly $100 to $700+/week depending on prior wages and state) and the $600 was a flat add-on, lower-wage workers often received total benefits exceeding their prior wages. The Congressional Budget Office estimated the national median replacement rate was about 134% under the CARES Act. This gave Senate Republicans one of their primary arguments for the wage-based HEALS formula.
How do I estimate my state unemployment benefit?
Most states calculate your weekly benefit amount (WBA) as your highest-quarter wages divided by a divisor (typically 21-26, depending on state), then capped between the state minimum and maximum. For a rough estimate, divide your annual salary by 4 to get high-quarter wages, then divide by 26. Apply your state's minimum and maximum. For example, a California worker earning $52,000/year would estimate: $52,000/4 = $13,000 high-quarter wages, divided by 26 = $500/week, but capped at California's 2020 maximum of $450/week. For a precise figure, use your state employment office's official calculator with your actual wage records.
What is Pandemic Unemployment Assistance (PUA)?
PUA was created by the CARES Act to extend unemployment benefits to workers not normally eligible for state UI - including self-employed workers, gig workers, freelancers, independent contractors, and part-time workers. PUA provided up to 39 weeks of benefits under the CARES Act. Both the HEALS and HEROES Acts proposed extending PUA (through December 31, 2020 and March 31, 2021 respectively), and would have added the federal supplement to PUA payments as well.