With Congress and the White House in an accident, President Trump recently ordered that people who receive unemployment benefits receive an additional $ 400 a week. The extra funds would be a relief to the more than 15 million unemployed Americans who saw a $ 600 benefit at the end of July. But the extra money amid the ongoing coronavirus crisis is far from a done deal.
For one thing, Govin Gavin Newsom of California pushed back this week on the part of the plan that required states to contribute $ 100 of the benefit, claiming that the state would suffer as a “massive” budget cut.
That what kind of unemployment benefits could Californians see – and, crucially, when?
How many?
That extra $ 400 would almost certainly be $ 300 for Californians and residents of other states who say they do not have enough money to contribute $ 100.
On Tuesday, the Trump administration changed its plan to exempt exempt states from contributions if they already provide at least $ 100 in benefits from state unemployment. Most states already meet that requirement, according to White House economic adviser Larry Kudlow.
That means many people could make $ 300, half of what they received through July under the Federal CARES Act.
When would the money arrive?
The answer to this is unclear. A key question that supports Trump’s order is this: Is it legal?
From the moment the executive order arrived, it triggered questions of constitutionality, as the power to collect taxes, spend money, and write laws lies with Congress. If the order is challenged in court, it may delay or shake the whole idea.
If the legality question was resolved, the order would make payments retroactive to August 1st. But it would take weeks or longer for those who are eligible for the benefits to see them. States would have to put in place new systems to manage the benefits, according to employment experts.
In California, the Department of Employment Development, which handles unemployment benefits, is struggling to process and pay out claims due to reported staff shortages and outdated technology.
So where is Congress in all this?
Capitol Hill lawmakers have so far been unable to reach a bipartisan deal on a new incentive plan. And important differences remain.
Democrats, who control the House, want a $ 3 trillion package, although they are proposing to reduce their proposal by about $ 1 trillion. Senate-controlled Republicans want to keep the $ 1 trillion incentive.
