WASHINGTON, DC – JULY 21: Senate Majority Leader Mitch McConnell (R-KY) speaks to the media after … [+]
Updated July 23, 2020. White House chief of staff Mark Meadows and senior Republicans have indicated that a short-term extension of the enhanced federal unemployment benefits of $ 600 per week is not likely to happen. Instead, they hope to pass a more permanent resolution.
The $ 600 federal weekly unemployment benefit that was passed as part of the CARES Act will expire on July 31. However, this weekend will mark the end of the benefit for most beneficiaries due to the way many states calculate unemployment benefits.
The Democrat-sponsored HEROES Act, passed by the House of Representatives in May, called for an extension of the weekly federal benefit of $ 600 until January 2021. However, that law is unlikely to pass.
The Republican-led Senate is expected to propose the “fourth and final” stimulus bill during the current voting session. However, there are still major disagreements regarding the size and scope of the next invoice. The next stimulus bill is unlikely to pass before August.
Meanwhile, some 25 million unemployed workers are ending the last week of expanded federal unemployment benefits and will soon receive only state unemployment benefits, averaging $ 378 per week.
This has prompted several prominent Republican senators and officials in the Trump administration to suggest a short-term expansion of the federal unemployment benefit in an effort to continue to provide income to the millions of unemployed workers while also earning time to negotiate the next bill. of stimulus law.
Renewing expanded unemployment benefits would be separate from the upcoming stimulus bill
Up to this point, the renewal of the federal unemployment benefit has been considered a binary discussion. Democrats generally support renewal of the benefit as it was included in the CARES Act and HEROES Act, while many Republicans have opposed extending the benefit on the premise that many people will choose not to work because they can earn more money. of unemployment benefits from what they earn. earn while working.
The extension of the benefit has also been discussed under the premise that it be included in the next stimulus package.
Now, however, there is talk of creating a separate agreement to buy time for everyone.
This is progress, considering that Republicans have previously opposed extending federal unemployment benefits. It is only in the last few weeks that there has been increasing support to continue the benefit on the next stimulus bill, albeit at a lower rate. Various reports have placed a possible extension of federal unemployment benefits at about $ 200 per week, $ 300 – $ 400 per week, or an amount that does not exceed the worker’s previous earnings.
Republicans still do not support the renewal of the program, since it was approved in the CARES Act.
How much and for how long?
The talks are currently in the preliminary stages and there is still no consensus on the amount of a possible extension or the potential duration.
However, there are indications that the extension could be less than $ 600 per week with a duration of a few months until the end of the year. An extension with a shorter duration could be written in a way that would allow extensions if necessary.
Senator Lindsey Graham (R-SC) suggested reducing the benefit to $ 400 per week while the program extends until the end of the year. Senator Ron Johnson (R-WI) called for a shorter extension that could be renewed.
Meanwhile, House Majority Leader Steny Hoyer (D-MD) prefers a longer-term solution. He said: “I would prefer to agree on a comprehensive response to the crisis, including an extension of unemployment assistance; state, local, and tribal government assistance; and other priorities “in the next stimulus bill.
While there is currently no agreement, there is still time to craft an agreement that will extend unemployment benefits for millions of unemployed workers, while still buying time to negotiate a broader stimulus package.
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