The change would greatly affect low-income workers, who represent a disproportionate number of those who lost their jobs during the coronavirus pandemic.
Starting in October, the unemployed would receive a payment that, combined with their state benefit, would replace 70% of their lost wages until the end of the year. The supplement couldn’t be more than $ 500, but many workers, particularly low-wage workers, would receive far less than that.
“This is a massive, massive cut in the program, more than meets the eye,” said Michele Evermore, senior policy analyst at the National Employment Law Project.
State benefits vary widely, but generally replace about 40% of wages.
States that need more time to establish such a system could request an exemption to continue paying a fixed dollar amount for up to two more months. Under that scenario, the unemployed could receive payments linked to their wages for as little as a month before the supplement expires on December 31.
Just adding the additional $ 600 took weeks to establish states, and many agencies say that basing an improvement on individual worker wages would be much more difficult to implement.
The Republican opening offer differs markedly from the House Democrats bill, which would expand the $ 600 payment early next year.
According to the researchers, about 20% of unemployed people would receive more unemployment benefits than wages with a federal supplement of $ 200.
To provide an incentive to return to work, Republican lawmakers had considered providing a bonus to people who accepted job offers. However, that measure did not make the final cut.
Additionally, under the Republican proposal, the federal supplement would count as income for public assistance programs, such as food stamps. That means that some unemployed people could lose their eligibility for this help. The previous CARES Act exempted the federal payment of $ 600 from consideration.
Republican lawmakers also want to adjust the documentation requirements for those receiving benefits under the pandemic unemployment assistance program, which temporarily expanded payments to workers, freelancers, independent contractors, and certain workers affected by the coronavirus.
The proposal would require that they justify their previous work or self-employment within 21 days.
CNN’s Phil Mattingly contributed to this report.
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