3 states take full advantage of the memorandum of President Trump’s unemployment benefits. They will … [+]
States have begun mobilizing and submitting applications to FEMA for the enhanced federal unemployment benefits approved by President Trump on August 8th. Initial confusion over the mechanics of the program was mitigated in part by guidance issued by FEMA, which clarified the structure of the program and confirmed that states are not required to chip in an additional $ 100 to deposit $ 300 in federal funds secure. Most states seeking FEMA funding have said they will not pay unemployed workers an optional $ 100 state contest; However, three states have indicated that they will provide an additional $ 100, which means that their unemployed workers will receive $ 400 each week.
Overview of Extension Extension of Trump’s Unemployment
Trump’s Memorandum
With Congress embroiled in controversy over the next coronavirus incentive package, President Trump signed four executive guidelines on August 8, including one to provide improved unemployment benefits to 30 million Americans. The Unemployment Issue Memorandum issued by President Trump called on the federal government to cover 75 percent of a new $ 400 per week benefit and for states to use money from their Coronavirus Relief Fund (CRF) as other programs to cover the rest . As The Washington Post remarked, “that was interpreted by many states to mean that they would have to provide an additional $ 100 per week for their residents to be eligible for the benefit.”
President Trump’s verbatim remarks at his press conference reinforce this interpretation. He remarked: ‘I’m taking action to provide an extra or an extra $ 400 per week in extended benefits: $ 400. Okay? States are asked to cover 25 percent of the cost of existing funding, as well as the tens of billions of dollars they make available through the Coronavirus Relief Fund. Under this plan, states will be able to offer greater benefits if they so choose, and the federal government will cover 75 percent of the cost. That we are all set up. It’s $ 400 a week, ”he added.
Bipartisan Blowback leads to program modifications
Almost immediately, there was bilingual shock from state leaders over their required incremental contributions. State budget deficits are expected to reach $ 555 billion, according to the Center for Budget and Policy Priorities, and many argue that funding an additional $ 100 was impossible. As a result, White House officials began to adapt the directive issued by Trump. Most significantly, the mandate backed for states to contribute an additional $ 100 to provide the federal government with the $ 300 in federal unemployment benefits.
This change was announced through a letter from the Department of Labor, which provided guidance to states on how the Lost Wages Relief Program would work. The letter confirmed that states were relieved of the obligation to provide an incremental $ 100 in unemployment benefits to receive the $ 300 federal contribution. “States can count funds that are already being used to provide regular UI payments for the state after the state game. If they choose, insurers will be eligible to receive a $ 300 LWA payment from the federal government in addition to their weekly benefit amount, “the letter states.
State responses vary toward increased unemployment benefits
Despite additional clarity about the program, the responses of the states have differed dramatically.
Some states decide to help
A few states, such as South Dakota and New York, have refused to participate, rejecting additional federal unemployment benefits for their unemployed workers. South Dakota Governor Noem issued a statement last week refusing to participate in the Lost Wages Program. “My administration is very grateful for the extra flexibility this effort would have provided, but South Dakota is in the fortunate position of not accepting it,” she said. “The South Dakota economy has, never shut down, recovered nearly 80% of our job losses.”
Others have already submitted applications and received approval
Other states quickly mobilized to submit applications to FEMA. As of this morning, nine states have received approval from FEMA with Arizona starting to pay additional benefits on August 17th. [For the latest state-by-state updates, please reference the table in this article from Forbes’ Rob Berger.]
3 States will provide workers with full benefits of $ 400; 1 State still in flux
Most states that have submitted applications have signaled that they will not provide an additional $ 100 to unemployed workers, which means that eligible claimants will only receive $ 300 in federal funds a week. Three states have so far decided to agree to the federal funds, while the payout of one state is in flux.
Montana
Montana was the eighth state to receive approval for the improved unemployment benefits. It plans to pay the incremental $ 100 weekly state benefit from the $ 1.25 billion it received as part of an allotment received from the CARES Act. Montana’s average benefit was $ 341. With the full contribution for improvement, unemployment benefits will range from $ 560 to $ 950, according to the Associated Press.
West Virginia
West Virginia also plans to contribute $ 100 and pay unemployed workers the full benefit of $ 400 a week. “West Virginia will pay for it,” Governor Jim Justice said. “We will pay for it and very willingly we will pay for it.” West Virginia is considering using its CARES Act rate, also $ 1.25 billion, for the incremental payment. Governor Justice indicated paying the benefit of $ 100 per week would cost the state $ 26 million each week. “At the end of the day, we’ll figure it out,” he said.
Kentucky
On Wednesday, Kentucky Governor Andy Beshear announced his intention to submit an application for the full payment of $ 400 per week. “While there is still some uncertainty in this new program, it is simply too important to pass these dollars on to our families,” he told reporters. Kentucky will use CARES Act funds for its share, which Beshear estimated would cost the state $ 8 million a week. Asked why he decided to use state funds and provide unemployed workers with the full payment of $ 400 a week, Beshear said the incremental $ 100 was “critically important” to recipients. “We know how this money moves through the economy,” he noted.
North Carolina – Still in flux
North Carolina has some of the lowest unemployment benefits among states, providing benefits for only 12 weeks in most cases, instead of the 26 weeks that many other states allocate. Governor Roy Cooper said he is supporting North Carolina by providing an additional $ 100 so that unemployed workers can receive the full benefit of $ 400 a week. Unlike other states, Cooper argued that the state contest should come from the North Carolina Trust Insurance Fund instead of the permission of the state CARES Act. The trust has $ 2.9 billion in funds as of August 10th.
State Senator Chuck Edwards, who co-chaired the General Assembly’s Joint Legislative Review, however, was not obligated to pay the full $ 400. “That is certainly a hot possibility, but we must also considering the fact that the length of the emergency is unknown, “he noted. “What we are working to do to make this happen right now is that we can benefit from the $ 300 that the federal government is offering us.”
The Upshot
Most states apply for funding under the Enhanced Unemployment Benefit Program, paying only the $ 300 federal contribution. A few states have declined to participate at all, but Montana, West Virginia and Kentucky are going in the opposite direction, paying the full benefit of $ 400 a week.
Further related reading:
First start for additional $ 300 unemployment benefit is Aug. 29 for most states, says FEMA
Confirmed: Additional $ 400 Unemployment Extension for Unemployment Divided to $ 300; State Match Optional
White House modification could cut another $ 100 before the $ 400 unemployment benefit even begins
Will the $ 400 unemployment expansion begin soon? Do not count on it, despite Trump’s executive order
Only way to second control of stimulus, real expansion of unemployment benefit runs through Congress
South Dakota denies Trump’s extra $ 300 unemployment benefit; Tells free money
Trump signs executive orders: extends federal unemployment benefits to $ 300 a week, protects against benefits, pushes student loan payments, raises tax rates
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