TOPLINE
California said on Saturday that it had committed $ 4.5 billion from the federal government to provide an additional $ 300 in weekly unemployment benefits lasting three weeks, and participating in 18 other states so far enrolled in the program. .
Govin Gavin Newsom speaks at a press conference on homelessness in Oakland, California, on Thursday Jan. … [+]
KEY FACTS
In an executive memo on Aug. 8, President Donald Trump set aside $ 44 billion from the FEMA Disaster Relief Fund for states to provide $ 300 in additional weekly unemployment benefits to those who lost their jobs due to the coronavirus.
FEMA will only lose enough money for three-week benefits, and after that additional payments will be made on a weekly basis “to ensure funding remains available to the states applying for the subsidy assistance,” officials say.
The $ 4.5 billion grant in California for just three weeks benefits amounts to nearly 10% of the total available funds for the entire program.
It’s unclear when Californians will actually see money, because Gov. Gavin Newsom warned that it may take time to reconfigure existing technology because the eligibility rules differ from the previous coronavirus relief bill.
Eighteen other states have applied for the program, including Massachusetts, Alabama, Indiana, North Carolina, Texas, Arizona, Colorado, Idaho, Iowa, Kentucky, Louisiana, Maryland, Michigan, Missouri, Montana, New Mexico, Oklahoma, and Utah. .
The government will stop spending money for the program after Dec. 6, Trump’s mandate says – but the program could run out of money in six weeks if more states sign up, according to the Wall Street Journal.
Crucial quote
“This new $ 44 billion allocation of federal funding from the Disaster Relief Fund will not go far. Between its inception and August 1, FPUC has paid out nearly $ 247 billion. “Even with a reduced federal cost of $ 300 per claimant per week, that amount will be depleted within a few weeks by states that even refurbish a system and turn to pay for it,” the National Employment Law Project said in a statement.
Key background
After negotiations for a more comprehensive relief bill collapsed in Congress, President Donald Trump resigned his own executive mandate, reducing the weekly unemployment benefit from $ 600 under the previous incentive package to $ 300 with an optional $ 100 contribution from states. Only three states have promised to pay the extra $ 100 so far: Montana, West Virginia and Kentucky.
Tangent
Some of the poorest Americans are not eligible for the extra $ 300 in the first place. Only those who receive at least $ 100 a week in regular unemployment benefits can get the extra $ 300, which leaves many low-income earners, especially those who are self-employed or rely on tips that may not meet the income threshold for this level of benefit.
Continue reading
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All states that receive Trump’s $ 300 per week unemployment checks, so far (Forbes)
