Unemployment benefits: When will Trump’s promise cash start flowing? It may take a while


Trump’s plan separates disbursement funds from the Federal Emergency Management Agency to pay for the new benefit, which is different from the now-expired $ 600 weekly federal incentive approved by Congress this past March. Because the money comes from another pool, it is subject to different rules – and it needs its own process.

“It would have to be made from scratch and run in parallel with Pennsylvania’s existing unemployment benefit programs,” said Penny Ickes, the communications director for the Pennsylvania Department of Labor and Industry, in a statement sent to CNN.

“This is not something that any state can do quickly,” she added.

Qualification rules also changed during the executive action. It excludes people who receive less than $ 100 a week from their existing unemployment benefits. It also supplies only half of what unemployed Americans have received.

If Congress had extended the pandemic relief program it approved in March, it would have been a smoother process for the states – albeit even harder than a flip of the switch. But talks over a new incentive agreement have stalled, leaving the $ 600 weekly impulse to unemployment benefits weekly July 31. Some people got their last checkup almost three weeks ago.

Trump administration officials have said states can get the new system up and running within two weeks, but some experts are skeptical.

“I do not think anyone will see this money in August,” said Andrew Stettner, a senior fellow at The Century Foundation, a progressive think tank.

A limited pool money

Trump’s executive action added $ 44 billion to the new unemployment benefit, an amount that could take just six weeks if all states participate in the program given how many people stay out of work thanks to the pandemic.

Initially, the Trump administration said states were required to chip in 25% of the new $ 400-a-week benefit. Many states, even with budget deficits, say they cannot afford the money. The National Governors’ Association said states would “bear significant administrative burdens and costs.”

But subsequent guidance from the Department of Labor stated that states can count their existing payments after their $ 100 match. That would effectively limit the total federal impulse to just $ 300.

States are still seeking further clarification on what is needed from them and how the program should be implemented.

“Once we get confirmation of what Mississippi as a state will need to do, we will make it public,” a State Department of Employment Security spokeswoman said on Wednesday.

Mike DeWine, Ohio Republican, told a news conference Tuesday that if the $ 300 is the administration’s final proposal, “then we want to get that money out of the people as soon as possible.”

A spokeswoman for the Ohio Department of Jobs and Family Services did not respond to a CNN request asking how long that would take.

States took weeks to set up the first round of programs

Many states were overwhelmed by the unusual number of people applying for unemployment when the pandemic forced businesses across the country to shut down. Millions of people waited weeks to start receiving the money. It has taken some of their months to come up with another program, created by Congress that offers benefits to gig workers and the self-employed, who are not traditionally eligible.

That program was in many ways fairer than states will have to stand up for the ultimate benefit, said Indivar Dutta-Gupta, a professor of law and co-executive director at the Georgetown Center on Poverty and Unequality.

“The thought of them doing it in two weeks is somewhat unbelievable,” he said, noting that some states could pay the new benefit to people as one lump sum.

Pandemy Vs. hurricane

Adhering to Trump’s new system is the risk of taking money away from FEMA that is destined for other types of disasters.

“We are going into what is predicted to be a fairly active hurricane season. This can have serious consequences as a rule,” said Isabel Soto, the labor market policy analyst at the American Action Forum.

Both Republicans and Democrats have proposed extending the unemployment benefit that expired at the end of July, but they differ on how much that payment should be. Republicans want to cut it from $ 600 to $ 200 until states implement – yet another new system – that replaces roughly 70% of the laid off workers. The supplement would expire December 31st. A bill passed by Democrats in the House of Representatives in May would continue to improve $ 600 early next year.

CNN’s Rebekah Riess contributed reporting.

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