WASHINGTON – The extra $ 400 in weekly unemployment benefits promised by President Donald Trump last week will probably be just $ 300 for many unemployed Americans.
White House economic adviser Larry Kudlow said Tuesday that the administration has adjusted its plans for the enhanced benefits a bit after states worried they could not share in the costs.
An executive order signed by Trump on Saturday calls for an additional $ 400 in weekly unemployment benefits, but says states must pay a quarter of the cost, or $ 100.
But executives in states with cash taxes complained that it would be difficult for them to find the extra money, so the administration was looking for a way to meet that requirement.
Kudlow told White House reporters Tuesday that the administration has decided that states will not have to chip in the extra $ 100 as long as they already provide at least $ 100 in state-free benefits. Most states already meet that requirement and do not have to put in the extra money, he said.
This means that most eligible claimants will receive an additional $ 300 in federal benefits on top of what they already receive from the state.
“We found this to be a good, generous compromise,” Kudlow said.
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Kudlow said the checks should start going in a few weeks and will be retroactive until August 1st. The average unemployment benefit to the state is about $ 400 a week, so with the federal supplement, many Americans can expect to receive $ 700 in weekly unemployment benefits, Kudlow said.
Trump ordered the extra unemployment benefits after negotiations with congressional leaders collapsed late last week without an agreement on a new relief package to help Americans still suffering from the economic fallout from the coronavirus pandemic.
Congress voted in March to provide $ 600 in additional unemployment benefits, but those benefits expired in late July.
In addition to extending unemployment benefits, Trump signed executive orders that halted some student loan payments, protected some tenants from eviction, and delayed tax evasion.
The decision to allow states to count current unemployment benefits if their 25% match for federal aid could add to the legal questions surrounding Trump’s orders. Some Democrats and other critics have argued that they are on shaky legal grounds or even unconstitutional.
Michael Collins occupies the White House. Follow him on Twitter @mcollinsNEWS.
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