State laboring to add extra jobless benefits

More than a week since President Donald Trump signed an executive order extending certain supplemental unemployment benefits for eligible recipients — and nearly three weeks since the first round of such benefits expired — Pennsylvanians still have a long time to go before they should expect to see that money.

Because of the nature of the executive order, state officials said, it could take a month or more to set up the new system required for distributing benefits.

“The convoluted program, which is a Band-Aid rather than an actual solution, is responsible for delaying getting this supplemental funding to people who need it now to pay bills and feed their families,” Jerry Oleksiak, secretary of the Pennsylvania Department of Labor and Industry, said at a press briefing Tuesday. “Hardworking

Pennsylvanians need more than a temporary program that is forcing us to recreate the wheel.”

Mr. Oleksiak said his department and the Wolf administration had pushed instead for the federal government to extend a $600 weekly supplemental benefit that had been available to anyone receiving unemployment compensation, one of the programs that was part of the larger federal stimulus package passed in the spring.

When the Federal Pandemic Unemployment Compensation program expired Aug. 1, talks in Congress around extending the benefits quickly fell apart. Mr. Trump then signed an executive order Aug. 8 to extend the supplemental benefits, although at a lower rate and with more specific requirements.

In Pennsylvania, eligible recipients would likely receive an additional $300 for about five weeks, Mr. Oleksiak said. The state has not yet decided if it will fund an additional $100 in benefits on top of that, a possibility but not a requirement under Mr. Trump’s order.

The supplemental benefits are only available to claimants who receive $100 or more in unemployment compensation per week. That means about 30,000 Pennsylvanians will not be eligible, according to Mr. Oleksiak.

The new system would retroactively pay supplemental benefits starting Aug, 1, when the previous program expired.

Before workers can see that money, Pennsylvania has to set up a new system to house the new program.

“Like many other states, Pennsylvania believes the new program cannot be quickly implemented,” Mr. Oleksiak said. “We are still evaluating what will be needed and how long it will take us to have this

Under the executive order guidelines, the system would be separate from the state’s other unemployment programs because it is relying on emergency funds, according to Susan Dickinson, the director of the Office of Unemployment Compensation Benefits Policy.

On top of all the regular things that an unemployment system looks for in determining benefits, the state will have to add even more capabilities to the new system, Ms. Dickinson said. For example, it has to filter out any applicants who receive less than $100 in unemployment benefits that week.

And it must ask every individual if they are unemployed due to COVID-19, a stipulation that was previously only required for the Pandemic Unemployment Assistance program. The PUA program — another federal program to provide economic relief amid COVID-19 — provides unemployment benefits to those who are self-employed, gig workers and other people who were not previously eligible.

To fund the new supplemental benefits, Pennsylvania plans to apply for a loan from the Federal Emergency Management Agency, Mr. Oleksiak said. Mr. Trump is seeking to set aside $44 billion in previously approved disaster aid to help states maintain the supplemental jobless benefits.

For now, state officials are waiting for more guidance from the federal government before applying for a loan or officially setting up the new system.

There is no timeline for how long it could take for residents to see the extra $300, Mr. Oleksiak said, but state officials are “anxiously awaiting” more instruction to start the process.

“We are watching this very closely … and we will continue to monitor this program and put it into effect as quickly and as effectively as we can,” he said.

Since March 15, around the time Gov. Tom Wolf ordered business closures, Pennsylvania has paid more than $24.7 billion in unemployment benefits. Of that total, $15.5 billion came from the FPUC program.

Pennsylvania officials say the state has processed 97% of claims filed between March 15 and July 11. The other 3%, which represents almost 49,000 people, are under individual review by staff.