President Trump’s Executive Action to Offer $ 400 Weekly Unemployment Benefit Extension … [+]
An untimely statement by President Trump last Saturday that unemployed individuals would see $ 400 a week in benefits has already been changed by White House officials. As a result, millions of unemployed Americans can only see $ 300 in improved weekly unemployment benefits, a 50 percent reduction from the $ 600 weekly federal bonus paid out by the end of July.
The Unemployment Assistance Memorandum, issued by President Trump, called on the federal government to cover 75 percent of a new benefit of $ 400 a week and for states to use money from their Coronavirus Relief Fund (CRF) as other programs for the rest to cover. As The Washington Post notes, “that was interpreted by many states to mean that they would have to provide an additional $ 100 per week for their residents to be eligible for the benefit.”
President Trump’s verbatim remarks have also been in line with this. During a news conference on Saturday at his golf club in Bedminster, New Jersey, he remarked: ‘I’m taking action to provide an extra or an extra $ 400 per week in extended benefits: $ 400. Okay? That, that’s generous, but we want to take care of our people. Again, it was not her fault; it was China’s fault. ”
“States will be asked to cover 25 percent of the costs using existing funding, as well as the tens of billions of dollars they make available through the Coronavirus Relief Fund. Under this plan, states will be able to offer greater benefits if they so choose, and the federal government will cover 75 percent of the cost. That we are all set up. It’s $ 400 a week, ”he added.
There was an immediate two-year blowback over the state’s increasing contribution to cover unemployment benefits, given the booming state budgets. On CNN, Gov. Mike DeWine (R-Ohio) was asked if his state could pay the new unemployment benefit. “The answer is, I do not know yet,” he replied. Governor Andrew Cuomo (D-New York), tweeted, “Execution orders cannot replace legislative actions. States cannot pay 25% of the unemployment costs. It’s just impossible. Cuomo and Arkansas Governor Asa Hutchinson, co-heads of the Association of National Governors, said in a statement that they were “concerned about the significant administrative burdens and costs that this latest action would place on states.” . “
Responding to growing criticism of the state’s contribution, White House officials have appeared to be making statements about not requiring new money from the states. White House National Economic Council Director Larry Kudlow suggested during a Tuesday interview on Fox News that the directive be amended so that states do not have to set up single-member funds to qualify unemployed Americans for the $ 300 federal benefit. have changed the mechanics of the deal a bit, ”Kudlow said. “States can still, if they add $ 100 again to increase the benefit more generally, that’s fine. … Any state that previously contributed $ 100, and every state did, will then qualify for the additional $ 300 . “
While this may satisfy executives, it also changes Trump’s original promise of a $ 400-a-week benefit. Now workers can only see $ 300 extra each week, a $ 100 cut from Saturday and a $ 300 cut from what they saw before the end of July. While some states may be able to chip in more, many are unlikely to make predictions about significant budget deficits and the need to spend millions to continue fighting coronavirus.
For Americans who have not received a federal unemployment benefit since July 25, the promise of even $ 300 could be welcome news, assuming states can actually implement the changes. However, for millions who are unemployed and struggling to find a job, the White House Amendment could be interpreted as another $ 600 pay cut they only received a few weeks ago.
Further related reading:
Will the $ 400 unemployment expansion begin soon? Do not count on it, despite Trump’s executive order
Only way to second control of stimulus, real expansion of unemployment benefit runs through Congress
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Trump signs executive orders: extends federal unemployment benefits to $ 300 a week, protects against benefits, pushes student loan payments, raises tax rates
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