A bill to reduce unemployment by providing that unemployment insurance funds may be used pursuant to State laws establishing programs for payments to employers who hire the unemployed.

Provides, under the Internal Revenue Code, that unemployment insurance funds may be used for payments to employers of otherwise unemployed individuals. Requires that each State establish a plan for such payments, which includes specific requirements that the employer will pay the unemployed individual wages comparable to the amount paid to other individuals doing the same work, and that no payment will be made for any position for a period of longer than one year.

Stipulates that the State law establishing an approved plan shall require from prospective employers information for qualification purposes.

Defines "otherwise unemployed individual" as meaning an individual who, but for his employment, would be eligible to receive compensation under State law.