Republican leaders request unemployment benefit support of $ 200 to $ 400 per week

One of the big sticking points for the upcoming stimulus bill, which is expected to be debated as Congress returns from recess tomorrow, focuses on unemployment. Senate Republicans have hesitated to add additional unemployment benefits, citing that it discourages people from working as a concern.

According to the assistants interviewed by the Washington Post, Some of those concerns have been alleviated as Republican leaders are discussing the possibility of providing additional payments to those who apply for unemployment benefits in the range of $ 200 and $ 400 per week.

That mark would not reach the $ 600 per week that unemployed workers received since the CARES Act was passed in March. But with benefits running out soon in late July, whether the payments would somehow continue has been a major point of discussion between Democrats and Republicans.

The House of Representatives in May passed the HEROES Act, which included funds to continue the additional payments of $ 600 for unemployment until January 2021. Republicans, particularly Senate Majority Leader Mitch McConnell, have voiced their unhappy with the HEROES Act, which provides $ 3 billion in aid. McConnell is expected to provide a plan closer to $ 1 billion.

One of the most important issues in the debate for a second stimulus package has been whether to provide continued unemployment benefits. The Republican Party’s apparent relaxation on the matter indicates not only concern about the rising case rates of COVID-19 in the U.S., but also how quickly the economy can recover, especially as some states shrink in the opening of normal commercial operations due to increasing infection rates

It also realizes how powerful initial unemployment controls were to provide a boost to the economy. JPMorgan Chase
JPM
The research arm found that spending by the unemployed rose 10% during the first months of the pandemic, while spending by employees fell 10%. According to the research, a complete reduction in benefits would hope to force unemployed workers to cut spending by 29%.

According to the SendAccording to the report, Republicans have also considered limiting additional unemployment benefits for those who had high incomes before losing their jobs.

The cost of extending a payment of $ 600 per week to the unemployed until the end of the year was expected to amount to $ 400 billion. The revised version is expected to cost between $ 200 billion and $ 300 billion, according to those who spoke to the Post.

While the debate in the Senate will focus on a specific number, it is a significant victory for the more than 45 million people who have applied for unemployment benefits during the pandemic, if some additional payments to the program are secured.