On Tuesday, a bipartisan group of Congressional lawmakers unveiled a $ 908 billion COVID-19 aid package that would bring in a $ 300 weekly bonus for four months, give money to state and local governments, increase paycheck protection program funding and funding for the development and distribution of the. What is not included in the package is a , which .
With the support of a full mix of legislators, the latest proposalwould have the potential to kick-start negotiations to pass on more aid, including the additional weekly unemployment check. Senate leader Mitch McConnell said he wouldn’t entertain the $ 908 billion bill – and instead revive his own narrow-minded proposal for a fraction of the amount and no support for a weekly bonus on unemployment checks.
On Thursday, however, McConnell expressed his willingness to compromise, which could mean talks over the $ 908 billion deal are back on the table.
Here’s what we know about supplementary unemployment benefits. This story is regularly updated with new information.
What happens if the increased unemployment benefits are not extended?
According to a report by the New York Times Thursday, without a new incentive bill to expand the programs instituted by the CARES Act:
- 7 million handy workers and contractors will lose their benefits
- 5 million will no longer have unemployment checks
- Several millions will have to deal with deportations
- About 21 million euros will have to start paying for student loans
- 125,000 companies will lose tax incentives not to fire employees
- $ 150 billion in aid to the state and local government is expiring
The US government is currently in a lame duck session untilmeaning that President Donald Trump would have to sign any aid package that comes through Congress, which is the only way at this point to get the .
What else goes away without a new incentive account?
Unemployed workers received a bonus of $ 600 per week, along with an extended period to collect benefits as part of the. When the bonus ended in July, Trump signed a to restart the extra weekly funds, on top of the typical unemployment benefits.
Those funds are known as Lost Wage Assistance, or LWA, and the aid was planned to last six weeks, providing an additional $ 300 per week to unemployed workers as Congress continued negotiations to establish a adopt new economic aid package. States have already exhausted their resources. Thewould increase the weekly bonus back to its original $ 600 for four months.
The CARES Act has enacted multiple programs with a. In addition to the larger checks outlined above, the Rescue Act also expanded unemployment benefits for new applicants to 39 weeks instead of the typical 26 weeks set by the states. Those extra weeks will disappear, except in those states that have already enacted a longer timeframe up to 2021.
Another program that expires on December 31 is the Pandemic Unemployment Assistance program. Self-employed contractors and handy workers do not normally receive unemployment benefits, but PUA allows them to receive weekly funds, similar to other unemployed workers.
Why were unemployment benefits increased in the first place?
Congress has itin March to help Americans and American businesses after cities started closing as a result of the pandemic. Included in the package was additional unemployment assistance for people who lost their jobs as a result of the pandemic.
Since the introduction of shelter-in-place rules, tens of millions of Americans have received the additional federal unemployment assistance. With states offering between $ 235 and $ 1,220 per week in aid, the additional $ 600 per week is an important part of many people’s financial lifeblood.
Who was eligible for increased unemployment benefits?
If you are fired or on leave,. Once the state has approved your claim, you will be eligible for all state benefits to which you are entitled. Because states cover 30% to 50% of a person’s wages – some states offer more while others offer less – the additional $ 600 from the federal government was added to close the gap.
How has the CARES Act helped people who were fired or on leave?
Each state has its own criteria for who qualifies for unemployment – and what those benefits include. This includes how much money you can receive, which is usually based on your income and how long you are eligible to receive it, which is usually based on how long you have had your most recent job. The CARES law provided for an aid fund – up to $ 600 extra per week – while also expanding state unemployment benefits to a maximum of 39 weeks instead of the typical 26 weeks.
Who was not eligible for the extra unemployment check?
There will be some people who receive unemployment benefits who cannot take advantage of additional funding. The U.S. Department of Labor (PDF) issued guidelines on the eligibility requirements for the LWA on August 11. Plaintiffs would have to qualify for a minimum of $ 100 from a state’s unemployment benefit program to be eligible for the additional $ 300 federal funds. This would disqualify 1 million people, according to the New York Times.
How are unemployment benefits actually calculated?
The state determines how much each applicant receives, usually based on that of an individual. It varies from state to state, but is usually between $ 300 and $ 600.
How do I find out if I was eligible for unemployment benefits?
Eligibility criteria vary from state to state, but the general rule is that you must apply if you have lost your job or are on leave through no fault of your own. This includes a job that is directly or indirectly lost due to the current pandemic.
How do different states deal with unemployment money?
Again, the duration and amount of the benefit varied. Most states offer funding for up to 26 weeks, while others, such as Georgia, limit benefits to 12 weeks. Delaware, on the other hand, extended benefits to 30 weeks. The weekly benefit amount depends on an applicant’s gross income when they were employed and ranges between $ 300 and $ 600, with some exceptions. Mississippi had paid up to $ 235, while Massachusetts’ maximum was $ 1,220.
Where can I find more information about my state’s policies?
Each state’s employment office provides more information about its specific unemployment benefits.
How has the CARES Act helped self-employed people?
The CARES Act also created the Pandemic Unemployment Assistance Program, which provides benefits to individuals who would normally not be eligible for state unemployment benefits, such as gig workers, freelancers, independent contractors, and small business owners whose income has been compromised by the pandemic. Under the CARES law, PUA funding is available until December 31, 2020.