When Will the Latest Coronavirus Unemployment Benefits Start? What We Know -- Update
August 12 2020 - 9:36AM
Dow Jones News
By Sarah Chaney
President Trump signed an executive action on Aug. 8 for a
federally funded $300 a week in enhanced unemployment benefits for
workers laid off during the coronavirus pandemic. The payments
would replace the $600 payments that expired last month. Mr. Trump
called on states to provide another $100 a week, but administration
officials said the state-funded benefit was optional.
Here is what we know about how unemployment benefits will work
under Mr. Trump's latest executive actions.
How much will my unemployment check be under President Trump's
executive action?
Unemployment benefits will include the regular state
unemployment benefit -- which averaged about $330 a week in the
year through June. States can provide an additional $300 a week
funded by the federal government. If a state chooses to fund an
extra $100 in unemployment benefits, per Mr. Trump's request, that
could bring the total tab up to $400 a week in supplemental
benefits.
How do I know if my state will fund the extra $100 in
benefits?
States are currently making the decision on whether to fund this
supplemental benefit. Many states are facing cash constraints due
to the pandemic, and will struggle to pull from funding sources
like rainy-day funds for the expanded benefits.
Governors in states such as New York and New Jersey have
indicated they are unlikely to pursue Mr. Trump's proposal that
they fund 25% of the additional benefit. Ohio already decided it
would distribute the extra $300 a week without providing the extra
$100.
My extra $600 ran out. When do I start getting the new federal
benefit?
States should be able to begin delivering the $300 payments
after applying for funding with the Federal Emergency Management
Agency and making technical changes to systems to distribute the
money. A senior Labor Department official said that process should
take a couple of weeks. Some states said distributing the
supplemental benefits would require setting up a new system. "It
would have to be created from scratch and run parallel with
Pennsylvania's existing unemployment-benefits programs," a
spokeswoman for Pennsylvania's labor department said. "This is not
something that any state will be able to do quickly."
How long will the extra $300 last?
Mr. Trump allocated $44 billion to cover the additional $300
weekly benefit, using money set aside for disaster relief. The
federal government spent an average of $16.6 billion a week on the
$600 enhancement benefit in the last four weeks of July, according
to Labor Department data. Reducing the benefit to half that amount
for a similar number of claims would be about $8.3 billion a week.
That would exhaust the $44 billion that Mr. Trump allotted in less
than six weeks. The senior Labor Department official confirmed this
timeline.
Who is eligible for expanded aid under Mr. Trump's executive
order?
Workers receiving at least $100 a week in unemployment insurance
through regular state programs or others, such as a federal program
for gig-economy workers, are eligible.
Who isn't eligible?
Mr. Trump's order said individuals collecting less than $100 a
week in unemployment benefits won't be eligible for the additional
aid. Unemployment benefits are based on a calculation of a worker's
previous income, which means many lower-wage or part-time workers
will be unable to receive the additional benefits.
Do I need to apply for the expanded unemployment aid?
The March stimulus law that created the extra $600 didn't
require workers to apply separately, and it doesn't appear an
application will be necessary now. You need to be collecting
regular unemployment benefits, though. People can apply for
unemployment-insurance benefits on their state's website or over
the phone. During the pandemic, states recommended that people
apply for benefits online given the high volume of calls. Once an
application is submitted, states process and approve applications.
Weekly unemployment payments then arrive through a mailed debit
card or direct deposit.
How long will my unemployment benefits last?
The additional aid won't affect the duration of regular weekly
unemployment benefits, which varies by state. The standard time to
receive benefits in many states totals 26 weeks. The March stimulus
law lengthened benefits by 13 weeks across states.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
August 12, 2020 09:21 ET (13:21 GMT)
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