Extended jobless benefits will take time to kick in

New Mexico must coordinate with federal Labor Department to distribute payments

For Zoe Sherman, a server at a Santa Fe restaurant, the wait for help from the federal government has been long. Too long.

So as Congress neared agreement on a $900 billion COVID-19 stimulus package Monday, workers like Sherman tried to soldier on as the deadline for action in Washington, D.C. — and Christmas — neared.

Sherman said she had more praise for the state’s recent move to provide a $1,200 stimulus check than Congress’ plodding machinations.

“To be honest, with it taking so long for Congress to pass another bill to extend unemployment benefits, I feel like I have learned not to expect the government’s help during this time and have tried to prepare financially as much as possible with the extra benefits,” Sherman said. “The extra $300 a week [in the federal stimulus] is extremely helpful. It almost doubles what I make on unemployment, so it really makes a huge difference.”

But the waiting game now begins for extensions to federal unemployment benefits, and state officials are warning that just because congressional leaders reached an agreement to add $300 per week to state unemployment payments and extend unemployment claims, it could take time before those funds reach people in New Mexico.

State Workforce Solutions Secretary Bill McCamley warned his agency cannot immediately forward money to 131,000 people on unemployment rolls and called for “some patience and time through this process,” adding the department promises “to get these new programs in place as fast as possible.”

Workforce Solutions spokeswoman Stacy Johnston said the agency still has to wait for official guidance from the U.S. Department of Labor. Johnston said it is unknown how long that would take, but it is likely any payment to claimants will be retroactive to Dec. 26, when CARES Act payments expire for the federal unemployment programs.

The agreement reached in Congress lengthens the Pandemic Emergency Unemployment Compensation program, which extended benefits for 13 weeks after state unemployment insurance benefits expired.

The agreement also allows the Pandemic Unemployment Assistance program to continue. This was the first time the self-employed, contractors and gig workers qualified for unemployment benefits.

Workforce Solutions advises people not to call the Unemployment Insurance Operations Center regarding this extension. The department will provide updated information when it becomes available, Johnston said.

People with existing unemployment claims do not have to take any action. Workforce Solutions will automatically update claims and inform claimants of their eligibility for extended benefits, according to the department news release.