While some Republicans want to stop the extra money at the end of July….
The Fed Chair, Trump and the Democrats want it to continue…
Trying to tag amounts it to prior salary amounts won’t work either…
Congress is under pressure to extend expiring unemployment benefits as COVID-19 infections continue to rise in some states and as jobless rates remain at levels not seen in decades.
The expanded benefits included in March’s CARES Act helped tens of millions of workers get through coronavirus-related lockdowns but are set to go away in August.
Republicans object to continuing to add an extra $600 to weekly benefits for all unemployment recipients, noting that it could make unemployment more lucrative than working for a large percentage of recipients. That, they say, could provide a disincentive for people to return to work as the economy reopens.
But Democrats are worried that cutting or reducing the benefit would leave poor people without a safety net.
A Friday report from the Federal Reserve noted that recipients could find themselves in a dire situation without the expanded benefits.
“The supplementary UI [unemployment insurance] will end this summer. At that point, it will be difficult for many families to meet their financial commitments — rent, food, utilities, and other payments — if the economic downturn continues and the benefits are not renewed,” the report said.
They also argue that if Republicans curb the enhanced unemployment benefits, low-wage workers will feel like they have to return to working, regardless of whether it’s safe to do so.
Lawmakers agreed to increase weekly unemployment benefits by $600 across the board in the CARES Act because that amount is the difference between the average weekly wage and the average weekly state unemployment benefit….