USA TODAY International Edition
Extra unemployment pay may take weeks to arrive
$ 300 in added jobless relief may take weeks
The latest on when millions of jobless Americans can expect to see the bump.
The $ 400 in extra unemployment aid for millions of out- of- work Americans is actually $ 300 in most states. And it won’t arrive for weeks, experts warn.
Americans may just get three weeks’ worth of payments, according to guidance from the Federal Emergency Management Agency, which will run the relief program through its Disaster Relief Fund, following an executive action from President Donald Trump this month.
After coronavirus aid talks hit a stalemate in Congress, Trump called for a $ 300- a- week federally funded jobless benefit for workers who were unemployed due to the pandemic, with states asked to provide another $ 100 a week.
But the legality of Trump’s memorandum remains up in the air. FEMA typically funds emergency responses to natural disasters, and states can’t normally pay unemployment insurance that isn’t authorized by Congress.
States will have to reconfigure their systems to distribute the funds, which threatens to result in long delays, according to Andrew Stettner, senior fellow at The Century Foundation.
“It will take weeks if not months for states to set up new procedures,” Stettner says.
The scramble for enhanced unemployment aid comes after a $ 600- aweek federal supplement enacted by Washington lawmakers in the spring lapsed at the end of July for more than 25 million Americans. The cut in federal benefits to $ 300 would reduce weekly payments from $ 908 per person to $ 608 on average nationwide,
according to The Century Foundation.
Here’s what you need to know about the benefits:
How much will benefits be?
Trump signed an executive action Aug. 8 calling for $ 400 in weekly unemployment benefits to replace the $ 600 federal supplement that expired in late July. Unlike the $ 600, which was in addition to any estate unemployment aid, states would be asked to pay a quarter of the $ 400, or $ 100. But governors complained it would be difficult to find the money in a recession.
The Trump administration then backtracked and said workers would get only $ 300 a week. A state wouldn’t have to put in additional funds if it already pays a worker $ 100 a week in benefits. The Department of Labor has since given guidance that regular state unemployment will qualify as their 25% contribution. But the benefits are contingent on states applying for aid.
This means that states have two options: Count existing benefits as a match, or kick in an additional $ 100, experts say. But so far, not many states have chosen the latter.
Will any states opt to pay $ 400?
Yes. Unemployed people in Montana and Kentucky, for instance, are poised to become the first to receive the promised $ 400. FEMA’s grant funding will allow Montana to provide those unemployed due to the pandemic $ 400 a week – $ 100 in state funds and $ 300 in federal funds – on top of their regular unemployment benefit, the agency said.
States may pay for their portion of the benefits by using money provided to them under the relief package passed this year, Trump’s executive action says.
Who is eligible?
Unemployed workers who receive less than $ 100 in state benefits won’t receive the extra $ 300 because their weekly benefit would fall short of triggering the state match to get the federal money.
When will workers get benefits?
The Trump administration has pledged the additional aid would reach workers in a matter of weeks, but that has been met with criticism.
States applying for the federal grants will get an “initial obligation of three weeks of needed funding,” according to a recent memo issued by FEMA. The agency will make additional disbursements to states on a weekly basis “in order to ensure that funding remains available for the states who apply for the grant assistance.”
Are benefits retroactive?
Yes. Once their state is set up, people already receiving benefits will see the supplemental aid come through with their regular state payments, retroactive to Aug. 1, the FEMA guidance says. States that began reconfiguring their systems Aug. 8 could start administering payments by Aug. 29, according to the Department of Labor.
How long will it take?
The new federal relief aid rollout must be run separately from state unemployment benefits programs, according to Michele Evermore, senior researcher and policy analyst for the National Employment Law Project. That will take time, she added, since states can’t use their current unemployment insurance infrastructure to pay a benefit that isn’t authorized by Congress.
Have any states started paying?
Yes. Arizona last week became the first state to send out benefits, according to the state Department of Economic
Security. The state has issued about $ 201 million to about 400,000 claimants so far, which includes the beginning of retroactive payments for weeks ending Aug. 1 and Aug. 8.
Who gets left out?
At least 1 million unemployed workers earn less than $ 100 a week, or about 6% of individuals on basic state unemployment, according to Eliza Forsythe, a labor economist and assistant professor at the University of Illinois at UrbanaChampaign. That disproportionately affects female, low- wage and part- time workers, she said.
How long will the benefits last?
Trump directed the use of funds from FEMA’s Disaster Relief Fund, which would be capped at $ 44 billion, lasting until December. But experts say states will run through the money quickly.
More than 25 million people had received the $ 600 weekly bonus. With the enhanced unemployment aid capped at $ 44 billion, Stettner estimates that the additional aid will last just over a month if the same number of people receive the bonus and if every state participates.
How will states pay for this?
States can’t use any existing unemployment funds or regular state staff for the program, according to Stettner. The additional aid is available in states approved for funding by FEMA. States have until Sept. 10 to apply for the funds.
What about when funds run out?
The Trump administration is tapping into up to $ 44 billion in FEMA’s Disaster Relief Fund. But the amount could be cut at any moment if the funds are needed for their usual purpose of natural disaster relief, experts say, which further complicates funding in the midst of hurricane season.
Is it legal?
It’s unclear whether Trump has the authority to extend enhanced jobless benefits by executive action while sidestepping Congress. Critics have claimed that states can’t pay unemployment insurance that isn’t authorized by Congress.
The federal relief aid rollout must be run separately from state unemployment benefits programs, says Michele Evermore, senior researcher for the National Employment Law Project.