To reform the Federal unemployment benefits system.

Amends the Federal-State Extended Unemployment Compensation Act of 1970 to revise the formula for the extended benefits trigger.

Amends the Social Security Act (SSA) to require increases and decreases in the earnings allocated to State accounts when States meet or fail to meet funding goals.

Amends SSA to restrict interest-free advances to State accounts in the Unemployment Trust Fund to States which meet funding goals.

Amends the Internal Revenue Code with respect to the Federal Unemployment Tax Act to allow certified States to elect to collect Federal unemployment taxes. Requires States to distribute to unemployed individuals State-specific information packets explaining unemployment insurance eligibility conditions.