- The White House is saying it could support a partial extension of the boosted unemployment benefits that the federal government pays millions of laid-off workers, albeit in a smaller amount.
- The Washington Post reported that Republican lawmakers were weighing to add $ 200 to $ 400 a week after the $ 600 boost expires in late July.
- Republicans have fiercely opposed extending the $ 600-boosted unemployment payments enacted in March.
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The White House is opening the door to a partial extension of the federal boost in unemployment benefits, the Washington Post reported Tuesday. The $ 600 federal payment enacted in March expires within 12 days for all 50 states.
The newspaper quoted three aides to Congress and lobbyists familiar with the internal debate. Republican lawmakers are weighing whether the increased payments should be cut to an additional $ 200 to $ 400 a week, The Post said.
The difference could be offset by a second stimulus check, sources at The Post said. It is a measure that Republicans in Congress also decide whether to look in the financial aid package to be debated later this month. That could be aimed at low-income people.
Read more: The weekly coronavirus unemployment increase of $ 600 is slated to end in July. 3 analysts share predictions on how Congress will replace him, including a special bonus for returning to work.
According to the Department of Labor, about 33 million people in the US have unemployment insurance. Many economists say the $ 600 federal supplement has provided a critical lifeline for people struggling with unemployment in a weak economy, helping to accelerate rebounds in consumer spending.
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But Republicans are fiercely opposed to extending the benefit. They say it discourages people from returning to work, as it allows a significant portion of workers to earn more from the government.
A study by the National Bureau of Economic Research indicated that two-thirds of laid-off workers could earn more from unemployment than from wages on the job.
National Economic Council director Larry Kudlow said last month that the $ 600 benefit could expire in late July. During a Fox Business interview on Monday, Kudlow said the Trump administration would push for “some unemployment reforms.”
Treasury Secretary Steven Mnuchin echoed Kudlow. In an interview on CNBC Thursday, he said the administration would try to ensure that benefits total “no more” than 100% of a worker’s salary.
The $ 600 federal increase has been added to state unemployment benefits, which generally replace about half of a person’s salary. With a rise from $ 200 to $ 400, a significant number of unemployed people could still receive more from the government than their previous jobs.
An analysis released in May of the conservatively biased American Action Forum indicated that a $ 400 increase would lead 53% of workers to earn government income that exceeds that of their previous jobs. That figure would drop to 36% if the federal government sought to enact an additional $ 200 per week.
The coronavirus pandemic is still raging in the United States, and states like California, Texas, and Florida are experiencing a wave of cases. Those states recorded about 30,000 new cases on Monday, The New York Times reported, and their leaders suggested they could institute new blockades.
The economic environment remains highly uncertain as a result. The United States has recovered about 7.3 million jobs since the start of the pandemic, about a third of the amount cut since March.
But there were 3.9 unemployed people for every job available as of May, according to the Bureau of Labor Statistics. And many economists say there won’t be enough jobs for the unemployed any time soon.
