Republicans are considering extending the enhanced unemployment insurance benefit to a reduced level of $ 400 per month for the rest of the year, sources told CNBC.
Congress approved a $ 600 a week, or $ 2,400 a month, increase in unemployment benefits in March to deal with a wave of unemployment that had not been seen in decades as states closed their economies to combat the pandemic of coronavirus. The policy expires in late July, as the unemployment rate in the US exceeds 11% despite two strong months of job growth.
The Republican Party, which has not made a final decision on how it will develop unemployment insurance in a bill to be released this week, previously discussed additional payments of about $ 200 per week. Democrats want the sum of $ 600 a week to be available until at least next year.
The level Republicans are considering would reduce the amount of money beneficiaries receive at a time when approximately 30 million people are receiving unemployment insurance in some way. The additional assistance helped Americans cover food and rent during the outbreak, and many economists say it increased household spending and spurred the economy.
The Republican Party argues that the sum of $ 600 per week discourages people from returning to work.
This story is unfolding. Please check for updates.
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