TOPLINE
A proposal put forward by the White House and some Republicans that would link unemployment payments to about 70% of a worker’s previous salary in an upcoming coronavirus stimulus bill could delay unemployment benefits by up to 20 weeks, according to the sample. a new memo released by NPR. 25 million Americans who depend on payments with a drastic pay cut over a long period of time.
UNITED STATES – JULY 23: Mark Meadows, Chief of Staff of the White House, left, and Secretary of the Treasury … [+]
KEY FACTS
$ 600 in expanded unemployment payments expired in 49 states on Saturday and will end in New York on Sunday.
A Republican Party proposal calls for linking payments to 70% of a person’s lost wages, which is much more difficult for states to calculate than a flat rate.
In a memorandum sent to lawmakers, the National Association of State Workforce Agencies said that most states would take eight to 20 weeks to move to a system that pays unemployed Americans on a sliding scale.
The group said it preferred that Congress maintain a lump sum payment, but if it decides to switch to sliding scale benefits, it should set the effective date “in the future with enough time for scheduling.”
During negotiations on the first round of aid in March, Congress considered linking benefits to a worker’s past earnings, but dismissed the idea after Secretary of Labor Eugene Scalia expressed concern about the systems’ ability unemployment insurance to handle such applications.
Crucial quote
In May, the Labor Department told Congress it was “strongly” opposed to linking unemployment benefits to past wages because states would find it “extremely difficult if not impossible to implement,” according to a document obtained by NPR.
What to look at
At an event in Ashland, Kentucky, on Friday, Senate Majority Leader Mitch McConnell suggested it could take “a few weeks” for Congress to pass a stimulus bill.
Key background
In the $ 2 trillion stimulus bill that passed Congress in March, lawmakers included a general increase of $ 600 for state unemployment payments. Lawmakers settled on the sum of $ 600 because, when added to the average unemployment payment in 2019 ($ 371.88), it equates to almost 100% of an average US worker per week wage of $ 933, according to figures from the Bureau of Labor Statistics.
Surprising fact
Cutting unemployment benefits from $ 600 a week to $ 200 a week would lead to 3.4 million fewer jobs created over the next year, according to a study by the Institute for Economic Policy.
Further reading
State unemployment agencies could take months to adapt to proposal WH, Memos Show (NPR)
The $ 600 unemployment check will probably be cut, but the Republican Party can’t decide how muchForbes)
Unemployment checks could drop below $ 200 under the Republican Stimulus Plan (Forbes)
McConnell says the stimulus deal could take “a few weeks,” putting millions of people with unemployment aid in limbo (Washington Post)
Eviction Bans, $ 600 Unemployment Payments and Student Loan Tolerance: This is when the key benefits of the CARES Act expire (Forbes)
