That Extra $600 Unemployment Benefit Could Get Extended

U.S Personal services List of United States Personal services and company

That Extra $600 Unemployment Benefit Could Get Extended

That Extra $600 Unemployment Benefit Could Get Extended
As the United States' post-pandemic reopening plans increasingly look like a bad on-again-off-again relationship in many states, many workers have been concerned about losing their unemployment benefits.

In March, the CARES Act approved a federal extension to the unemployment benefits distributed by state systems, giving people filing for unemployment benefits access to an additional $600 per week.

But that additional payment is set to expire on July 31. If you're receiving unemployment benefits and aren't too optimistic about starting work again by the end of the month, you might be worrying about how you'll pay your bills on August 1 and beyond.

But a proposal in the Senate may eventually lead to an extension of that $600 per week benefit. The bill, called The American Workforce Rescue Act, would continue to provide additional benefits until a state's unemployment rate dips to below 6%.

Once a state's unemployment rate drops below 11% (based on a three-month average), the $600 benefit starts to phase out, with the weekly payment dropping by $100 for every percentage point of decline in the unemployment rate until it drops below 6%, Senate Minority Leader Chuck Schumer explained in a blog post about the proposal.

For example, if a state's unemployment rate is between 9% and 10%, the weekly benefit would be $400. Once it hits the 6-7% range, that weekly benefit drops to $100 per week on top of the state's benefit payment, according to a summary of the bill first cited by Forbes.

The nation's unemployment rate hit 14.5% in April, but has dipped back down to 11.1% for June, according to numbers released today. Prior to the economic onset of the pandemic, unemployment was just 3.5%.

About half of states are already below the 11% threshold, but there are many whose residents would likely see this additional unemployment benefit for some time. Illinois and New Jersey are at 15.2% unemployment, based on May data from the Bureau of Labor Statistics, while Nevada's unemployment rate is a whopping 25.3%.

The bill would have to pass in the Senate and the House of Representatives before receiving a final signature by President Trump. And if the passage of the CARES Act is any indication, it could be a few weeks before Democrats and Republicans agree on a course of action, if any additional action is indeed taken.

In the meantime, some states are taking steps to extend their own unemployment benefits. New Jersey, for example, has added 20 weeks onto its typical 26-week unemployment benefit period. It can do so because its unemployment rate spiked high enough over the past three months that it hit the federal benchmark for extending benefits. The added cost is shared by the state and the federal government.

Source: lifehacker.com

Was this article helpful? Yes -0  No -0  2  Posted by: 👨 Robin L. Jackson
×
Wait 20 seconds...!!!