Tens of millions of Americans will be left without improved unemployment insurance at a time when job losses are high.
The $300 extended unemployment benefit intended to help those out of work during the coronavirus pandemic is coming to an end, at least in some States. And the failure of the “thin” bill proposed by the Republicans means that there is currently no additional funding to provide unemployment support for the remainder of 2020.
So what happens now? In short, some states are reaching their last week to provide unemployment benefits as indicated by the executive action President Donald Trump signed in early August – known as Lost Wage Assistance (LWA) – which uses Federal Emergency Management Agency funds.
So which states are losing their funding and what will happen now? Read on to find out everything we know.
Which states will no longer give the $300 bonus?
Trump’s executive memo directed the federal government to provide $300 per week for six weeks, beginning August 1. States that have already received and sent funds to recipients have reached the six-week limit, i.e., the checks will soon expire.
The President also asked each state to provide an additional $100, so in total recipients were receiving $400 per week in enhanced unemployment payments, although this additional payment granted by each state has been optional.
FEMA approved the LWA program for six weeks in 48 states along with Guam and Washington D.C. Nevada applied for assistance on September 2 and is awaiting approval, and South Dakota is the only state that chose not to apply for assistance. Arizona was the first state to send the US 300 bonus, on August 17.
These are the states that announced the end of the $300 bonus:
- Texas
- Utah
- Iowa
- Arizona
- Montana
- Tennessee
The Texas Workforce Commission sent out notices saying that the last LWA check would be sent out during the week of September 5. It said it could not provide additional funds without additional federal action, but those who qualify for the weekly bonus will receive the equivalent of six weeks of checks. State labor agencies in Arizona, Iowa, and Utah announced the end of LWA for unemployment beneficiaries but that they will continue to receive the weekly benefits provided by the state.
Will new unemployment supports be sent?
Sending out new additional unemployment benefits is on the agenda if negotiations on the next economic stimulus bill resume.
The White House is discussing new executive actions, according to a Washington Post report. This would be similar to what President Trump did in August and could include additional funding for unemployment and improvements to the payroll tax cut.
The new unemployment benefit is up to US$6,600
The executive memorandum signed by the president offers $300 to beneficiaries of the unemployment program. These funds are in addition to the payments made by states for the unemployed, which range from $300 to $600 per week in most states.
As for the additional $100, stipulated in the Trump memorandum, most states have already said they would not be able to pay the amount with the exception of West Virginia.
| 1 Aug. – 1 Sep. | 1 Sep. – 1 Oct. | 1 Oct. 1 – 1 Nov. | 1 Nov. – 1 Dic. | 1 Dic. – 27 Dic. | Total for December 27 | |
| Full weekly benefit of $400 (federal and state) | S$2,000 | US$1,600 | US$1,600 | US$2,000 | US$1,600 | US$8,800 |
| Partial weekly benefit of $300 (federal and state only) | US$1,500 | US$1,200 | US$1,200 | US$1,500 | US$1,200 | US$6,600 |
| US$600 per week (CARES Act) | US$3,000 | US$2,400 | US$2,400 | US$3,000 | US$2,400 | US$13,200 |
Who will not qualify for the additional unemployment benefit?
There will be some people who will receive unemployment payments who will not be able to take advantage of the extra funding. The U.S. Department of Labor (PDF) sent out a guide to LWA eligibility requirements on August 11. Individuals would have to be eligible for a minimum of $100 from a state’s unemployment benefits program to qualify for the additional $300 federal funds. This leaves out 1 million people, according to the New York Times.
Will they include additional unemployment benefits in the next law?
Yes, but it will be a tough sell from Democrats to Republicans. The president’s executive action apparently solved the problem between the two parties. The Democrats wanted to continue the $600 weekly benefit, while the Republicans wanted to reduce the amount to $200 in the HEALS Act citing that the original amount was causing the unemployed not to return to work.
What does the Heals Act propose?
The White House and Senate Republicans have agreed to pass a new economic package. McConnell introduced the HEALS bill to the Senate on July 27. It is a $1 trillion package that would focus on creating or modifying programs offered under the CARES Act, such as unemployment insurance and the economic stimulus check.
Not all the details were immediately available, but the Republican Party is proposing a reduction from $600 a week to $200. Then, in September, the benefit would be adjusted and combined with state unemployment benefits to equal 70 percent of a worker’s salary.
According to the Economic Policy Institute, if Congress decides to reinstate the federal unemployment benefit bonus — in any amount — it will likely take two to four weeks for payments to reach the states, and then they would be sent to the recipients. So far, the proposal has been introduced only in the Senate. Democratic congressional leaders are currently negotiating with the Republican Party over the details of the plan.
What did the CARES Act propose?
Congress passed the $2.2 billion Coronavirus Economic Assistance and Response (CARES) Act to help the country regain economic stability after cities began to close due to the coronavirus pandemic.
Since containment rules began, tens of millions of people have received federal unemployment assistance. As a result, States are providing between $235 and $1,220 per week in assistance to each individual, with the additional $300 to $600 per week in Federal Pandemic Unemployment Compensation representing an important component of many people’s finances.
Who was eligible for extended unemployment insurance?
If you have been fired or suspended, you are eligible to apply for unemployment benefits in your state. Once the state approves your case, you are eligible for state insurance.
Because states cover 30 to 50 percent of a person’s wages (some states provide and others offer less), an additional $600 from the federal government was added to help fill the gap.
How does the CARES Act help people who are fired or suspended?
Each state has its own criteria for determining who qualifies for unemployment insurance-and what benefits are included. That is, how much money you can receive, which is usually based on income, or how long you can receive the insurance, which is usually based on how long you were at your most recent job. The CARES Act offered an extra fund, adding up to an additional $600 a week – at the same time, it extended state unemployment insurance to a maximum of 39 weeks, instead of the typical 26 weeks.
How are my unemployment benefits calculated?
Each state determines how much each person applying for insurance will receive, usually based on the worker’s gross income. This varies from state to state, but is usually between $300 and $500.
How do I know if I qualify for unemployment insurance?
Eligibility criteria vary from state to state, but the general rule is that you should apply if you have lost your job or were suspended through no fault of your own. This includes direct or indirect loss of your job due to the ongoing pandemic.
How do different states handle this?
Again, the length of the benefit and the amount vary. Most states offer up to 26 weeks of insurance, although others, like Georgia, limit benefits to 12 weeks. On the other hand, Delaware will offer insurance for up to 30 weeks. The amount of the weekly benefit depends on each applicant’s gross income when employed and ranges from $300 to $600, with some exceptions. Mississippi pays up to $235, while the state of Massachusetts’ maximum is $1,220.
Where can I find more information about the policy in my state?
Each state’s employment agency offers more information about its unemployment insurance.
How does the CARES Act help the self-employed?
The CARES Act also created the Pandemic Unemployment Assistance Program (PUA), which provides benefits to individuals who would not normally be eligible for unemployment insurance in States, such as casual workers, freelancers, self-employed individuals, and small businesses whose income has been impacted by the pandemic. Under the CARES Act, funding for the PUA will be available through December 31, 2020.