TOPLINE
On Saturday, President Trump signed an executive memorandum to extend the expired supplement to federal unemployment benefits – that extra $ 600 per week – from the CARES Act to a reduced level of $ 400 per week; the directive which was immediately met with severe backlash from Democrats, as well as questions about its legality. Here’s everything you need to know.
Donald Trump
KEY FACTS
The plan would provide $ 44 billion in unemployment benefits from the Disaster Relief Fund of the Homeland Security Department – the same fund that handles emergency aid for hurricanes and wildfires – under the Stafford Act.
Then, state officials could set up a program to provide an additional $ 400 per week in unemployment benefits (retroactively until the first week of August, immediately after the payments of the CARES Act expired), with 25% of that payment (as $ 100 per week) provided by the states; Trump also noted that states can contribute more if they choose to.
The Commission for a Responsible Federal Budget estimates that the $ 44 billion would last only about five weeks, given current levels of unemployment in the country, even though Trump’s memo says the benefits could continue through Dec. 27, 2020.
This is not to blame for the fact that low-income Americans are likely to miss out on new payments, as they are only available to those earning at least $ 100 a week (low-earning, especially those who ‘ t are self-employed or rely on tips, often do not meet the income threshold for this level of benefit).
The biggest threat to Trump’s plan, however, is state finances, which are already stretching thin due to the pandemic: If states cannot contribute that 25%, they may completely exclude the program to avoid the additional fiscal and administrative burden.
It is also not clear how quickly states could implement a new program if they chose to participate; Michele Evermore of the National Employment Law Project described the process USA Today as an “administrative nightmare.”
What we do not know
Or states will be required to chip in the 25% to receive federal benefits. It is not yet clear whether federal benefits will depend on that contribution, or if states that cannot come up with the money can still pay $ 300 a week from the federal government. In a press release on Monday, Trump said the requirement for states to contribute may not be the same across the board. “Depending on the state, we have the right to do what we want to do. We can end the 25%, or we do not have to do that, ‘he said. “It depends on the individual state.”
Chief critic
Already some administrators have said that the program is not possible. New York Gov. Andrew Cuomo dismissed it Monday as a “nonstarter,” saying “states can’t afford it” and predicting that “it will be challenged in court.” Gavin Newsom of California said the program would create a burn. . . of which even a state as large as California can never absorb. ”
Tangent
Trump issued this directive in the form of a presidential memorandum, which carries the force of the law, but nevertheless differs in a few important ways from an executive order, which must be included in the Federal Register and is required to exercise the constitutional authority of the President.
Large number
31.1 million. That’s how many Americans are currently receiving some form of unemployment benefit, according to the Labor Department’s Thursday report.
Continue reading
Poorest Americans Not Likely to Qualify for $ 400-a-Week Unemployment Check: Report (Forbes)
Trump signs order to extend unemployment benefits, but at a reduced amount (Forbes)
Mnuchin says White House wants to ‘put more money on the table’ for next incentive bill (Forbes)
‘Impossible’: Democratic Governors Pan Trump’s $ 400-A-Week Unemployment Benefit (Forbes)
