CLEVELAND, Ohio – A $ 600-a-week boost to unemployment checks, an extension of unemployment benefits to 39 weeks, and $ 1,200 incentive checks for individuals (employed as unemployed) were all part of the first round of federal relief in response to the coronavirus early this year.
The current status for those benefits: done, close to ending, and cash.
But there is longer hope for some, if not all, to return or be extended. One stopgap is already in motion.
Here’s an update on where things stand.
The extra $ 600 for unemployment
Unemployment checks in Ohio typically amount to no more than half of lost weekly income, reaching $ 480 for one person or $ 647 for someone with at least three dependencies. Since the federal CARES Act was passed in the spring, people on unemployment received $ 600 in addition to their regular unemployment checks each week.
That one in July.
The Democratic-led House of Representatives approved in May the extension of the additional benefit through January. But the Republican-led Senate has never voted on the proposal. And talks between the Democrats and the White House have been interrupted.
However, a partial replacement could be close for Ohioans who can add extra money for at least a few weeks.
Payments must be returned at a level of $ 300 per week for an indefinite amount of time, retroactively until August 1st. For both people on regular unemployment and the special pandemic program, spokesman for the Unemployment Agency, Bret Crow, said in an email in response to questions.
But he has not provided an estimate on when the first payments will be made, as the state is still working out how this new program should be managed.
The $ 300 is federal money from the directive announced by President Donald Trump earlier this month, and promises up to $ 400 a week for an indefinite period of time. Ohio, however, has no plans to add the $ 100 adjustment portion, leaving the total at $ 300, Crow said. The $ 100 addition would have caused additional delays, he said.
Under rules for the program announced by FEMA, “Applicants will be required to self-certify that they are unemployed or partially unemployed due to disruptions caused by the COVID-19 pandemic.” And to be eligible, a person must receive other unemployment benefits, such as through the regular unemployment program in Ohio or the special pandemic program that extends the qualification.
The payments will only last as long as there is money. Regarding how long that will take, Crow said, “Unknown, because there are many ways in which the program can run in the president’s order.”
One estimate from the non-profit commission for a responsible federal budget is that there is enough money to last five weeks. FEMA said $ 44 billion has been allocated from its disbursement fund for the payments.
When negotiations between the White House and Congress resume, the additional payments will be at the heart of the talks. A proposal passed by GOP senators Tuesday would raise $ 300 a week through December. Some previous proposals for GOP have included reducing the amount and maximizing linking of one percent of previous salaries. But there has been no consensus.
Stimulus controls
Most American adults received incentive payments of $ 1,200 in the spring ($ 2,400 for married couples and more for those with qualifying-dependent children).
The HEROES law that passed the U.S. House in May calls for another round of such checks, with only minor changes. The HEALS law proposed (and not passed) by Republicans in the House of Representatives in late July would do much the same. And the White House has spoken out in favor of another round of checks.
But there is no deal, in large part due to disputes over other parts of the coronavirus relief package.
Lime this up as a case where most people in government appear in agreement but nothing is done. If there is finally a deal on a new relief package, there is a good chance that a new round of incentive checks will be part of it.
Extended 13 weeks of unemployment
Under normal circumstances, unemployment benefits in Ohio last 26 weeks, financed by state tax. The CARES law, introduced in the spring, provided federal money to cover up to 13 additional weeks – 39 weeks in total.
Now some people are close to passing the normal threshold of 26 weeks but remain on unemployment due to the expansion.
This extension, under current law, is only good until December 26th. The House bill would extend the benefits through January, and in some cases through March.
Even without an expansion, however, benefits could continue.
Ohio’s high unemployment rate has caused an extension of benefits for up to 20 weeks under a separate federal program, although this may change. The trigger, Crow noted, stepped in because Ohio’s seasonally adjusted unemployment was both 8% higher and for previous years greater than 110% of levels.
Ohio’s unemployment rates in the three months of April, May and June were 17.6%, 13.9% and a preliminary 10.9%, respectively, compared to 4.1% in each of the same months in 2019, according to the US Bureau of Labor Statistics.
Crow said: ‘It is conceivable – hopefully not – that until 26 dec. Ohio’s rate will still be high. So if Ohioans were on traditional unemployment and exaggerated those benefits and then moved to PEUC (13 weeks extra) and exhausted those benefits, they could get maybe 20 extra weeks under the Federal Extended Benefits program.
This is for Ohio’s regular unemployment program.
The CARES Act introduced another program known as Federal Pandemic Unemployment Assistance (PUA) for people who are not eligible for standard unemployment insurance. These can be people with lower incomes than the self-employed.
The PUA program is scheduled to end on December 26 as well. But Crow said there is potential for an additional seven weeks under extended benefits, up to 46 weeks in total for those receiving PUA unemployment.
Rike Exner, data analysis editor, writes cleveland.com’s and The Plain Dealer’s personal finance column – That’s rich! Follow on Twitter @RichExner.
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