The additional $ 600 a week in unemployment benefits made available to those who collect unemployment amid the coronavirus pandemic are slated to expire at the end of the month, even as states across the country begin to see an increase in positive cases of COVID-19 that trigger even more lockouts and potential layoffs.
The Trump administration is currently in the midst of negotiations with Congressional leaders on a “Phase 4” coronavirus stimulus financial aid package, but at the moment, it is unclear whether that improved unemployment benefit of $ 600 per week will extend beyond July 31st. Date of Expiry.
LABOR SECRETARY SAYS $ 600 ADDITIONAL PER MONTH NO LONGER NEEDED
“It was a very important thing to do, since we were closing our economy. Basically Americans across the country were told, and we had to take action, but basically they were told you can’t go to work right now, “Labor Secretary Eugene Scalia told” Fox News Sunday “earlier this month. “I don’t think we need that $ 600 benefit in the future.”
Under the “Phase 3” economic stimulus package approved in March, also known as the CARES Act, Congress provided $ 250 billion to extend unemployment insurance to more workers and extend the duration of benefits to 39 weeks from 26 normal weeks. The provision provided an additional $ 600 for four months for those who lost their jobs in the midst of the crisis.
MNUCHIN SAYS EMPLOYEES WHO DENY THE OFFER TO RETURN TO WORK ARE NOT ELIGIBLE FOR UNEMPLOYMENT BENEFITS
The CARES Act also introduced a “Pandemic Unemployment Assistance” program, which extended unemployment benefits to freelancers, independent contractors, those with limited work history, and others who traditionally are not eligible for unemployment benefits who were unable to work as direct result of COVID-19.
However, Republican lawmakers had raised warnings that rising unemployment benefits in the midst of the pandemic “would push unemployment higher,” since many people can raise more money through unemployment programs than they can. they earned while working.
Treasury Secretary Steven Mnuchin warned earlier this year that people who reject an offer from his company to return to work after being fired due to the coronavirus are no longer considered eligible for federal unemployment benefits.
TRUMP SUPPORTS THE BIGGEST STIMULUS PAYMENTS OF $ 1,200
Mnuchin last week noted that the administration wants “to incentivize people to return to work.”
“They are for people who don’t have a job,” Mnuchin said of unemployment benefits. “We will not do it the same way. We are in a different situation. The companies reopened and they want to hire. “
Over the course of the pandemic, millions of Americans lost their jobs as a result of COVID-19 closings across the country. The speed and magnitude of job loss was unprecedented and more than double what the United States saw during the 2008 global financial crisis.
Congress and the White House are set to intensify talks on a fourth round of virus relief once the Senate returns from its two-week Independence Day recess on July 20. However, it is not yet clear what specific measures can be included in the package; Some proposals still on the table include a second stimulus check, a return-to-work bonus, a payroll tax cut, and liability protections for companies.
Mnuchin, and President Trump himself, have said the administration supports another round of economic stimulus controls for Americans. The president noted that the checks could be for amounts even higher than the up to $ 1,200 per person that many Americans received earlier this year.
Fox Business’s Megan Henney and Evie Fordham contributed to this report.
