The earliest that unemployed workers outside of Arizona should expect to start receiving the $ 300 … [+]
New information is yet to be released about when the additional $ 300 unemployment benefit approved by President Trump’s executive memorandum will begin to be paid for by states. There is great news for unemployed workers in Arizona, who are starting to receive improved benefits this week. For unemployed Americans in other states, however, the promised date keeps coming back. According to a Frequently Asked Questions document (FAQ) published by the Federal Emergency Management Agency (FEMA), it will take until August 29, on average, for most states to make payments.
Timelines shifted for additional benefit of $ 300 Start for unemployment
August 8th
President Trump signed an executive memorandum on August 8 authorizing the use of Disaster Relief Funds to pay a $ 300-a-week federal unemployment benefit. In his remarks, Trump promised his actions “will give direct and vital importance to Americans who are struggling in this difficult time.” The $ 300 is a 50 percent reduction from the $ 600 weekly federal payments that unemployed workers received under the CARES Act; however, the $ 600 payments expired in July, so many Americans are still waiting for the $ 300 financial lifeline that Trump had promised.
August 10th
During remarks in the press release, a reporter asked about the timetable for paying out unemployment benefits. Trump proposed to Treasury Secretary Steve Mnuchin who replied “within the next week or two, we think the states will be able to execute.” This meant that money would be streamed to millions of unemployed workers August 17 as of August 24. As indicated at the outset, as of today (August 17), only one state, Arizona, will begin paying benefits this week.
August 16-17
FEMA, which helps manage unemployment benefits as part of Trump’s Lost Wages program, published a FAQ guide to provide additional information. In response to a question about how long it will take states to manage funding for individuals, FEMA replied, “the Department of Labor estimates an average of three weeks from August 8, as states / territories adjust their systems at the same time as the review process. of FEMA. ” Three weeks from August 8 would be August 29. Earlier today, Senator Ron Wyden (D-Oregon) published a statement in response to FEMA’s guidance. “Donald Trump said workers would get quick benefits, but they would wait a month or more. Bills will pile up, and families will go hungry, fall further behind on the hair and can not pay for medicines, ‘he said.
FEMA’s response noted that “at least one state has estimated that all payments will be retroactive until August 1 in less than one week after grant issuance,” presumably referring to Arizona.
Why does it take so long to spend funds?
Representative Don Beyer (D-Virginia) noted that “Trump’s mandate forces states to rebuild an entirely new unemployment benefit – they may not use their current federally funded resources to process it.” The FEMA FAQ also identified that the need to meet new program requirements, including qualification, can affect the timing of states to provide funds and that the capabilities of each state may differ.
Date of retroactive benefit may help, but only in part
According to Trump’s memo, unemployment benefits will begin the week ending August 1, just as the federal unemployment benefits provided by the CARES Act expire. Therefore, even if states later have to pay out benefits, the payments would have to be returned by August 1st.
However, there is a ticking time bomb in Trump’s memo that could affect the amount of money the unemployed will eventually receive. Trump’s order looks to raise money in Homeland Security’s Disaster Relief Fund, which currently has $ 70 billion available. The FEMA FAQ notes that the benefit program will continue until FEMA uses $ 44 billion of the DRF, the DRF balance falls to $ 25 billion, or until we reach the end of 2020. According to experts, the money in the DRF can only last four to five weeks before it expires, a far cry from the December date in Trump’s executive order.
FEMA will provide approved states with an initial three-week subsidy to spend on unemployed workers and then make additional weekly extra payments “to ensure funding remains available to the states applying for the subsidy assistance.” If states drag their feet when they are approved, they may find that there is not enough money left in the DRF to cover obligations for their unemployed workers retrospectively until August 1st.
“Donald Trump also said workers would receive benefits by the end of the year, but only three weeks of funding will be provided in advance,” Senator Wyden noted in his statement. “If after three weeks FEMA determines that the money is needed to respond to a disaster, then nearly 30 million unemployed workers are just happy.”
Further related reading:
Confirmed: Additional $ 400 Unemployment Extension for Unemployment Divided to $ 300; State Match Optional
White House modification could cut another $ 100 before the $ 400 unemployment benefit even begins
Will the $ 400 unemployment expansion begin soon? Do not count on it, despite Trump’s executive order
Only way to second control of stimulus, real expansion of unemployment benefit runs through Congress
South Dakota denies Trump’s extra $ 300 unemployment benefit; Tells free money
Trump signs executive orders: extends federal unemployment benefits to $ 300 a week, protects against benefits, pushes student loan payments, raises tax rates
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