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Home / US / Unemployment benefits: When will Trump’s promised cash flow start flowing? It might take some time

Unemployment benefits: When will Trump’s promised cash flow start flowing? It might take some time



Trump’s plan to transfer disaster relief money from the Federal Emergency Management Agency to pay for new benefits, different from a $ 600 weekly federal increase that expired, approved by Congress in March. . Because money comes from a different pool, it follows different rules – and needs its own process.

“It will have to be created from scratch and run parallel to Pennsylvania’s existing unemployment benefits programs,” Penny Ickes, communications director at the Pennsylvania Department of Labor and Industry, said in a statement. to CNN.

“This is not something any state can do quickly,” she added.

Eligibility rules also change with operator action. It does not include people who receive less than $ 1

00 a week from their state’s existing unemployment benefits. It also provided only half of what unemployed Americans received.

If Congress expanded the pandemic relief program it passed in March, it would be a more seamless process for the states – albeit more difficult than a single switch. But negotiations over a new stimulus deal were stalled, allowing the federation to raise $ 600 weekly for unemployment benefits that expired July 31st. of them almost three weeks ago.

Trump administration officials said states would be able to start and operate the new system within two weeks, but some experts were skeptical.

Andrew Stettner, a senior fellow at The Century Foundation, a progressive thought organization, said: “I don’t think anyone will see the money in August.

Limited resources

Trump’s executive action has allocated $ 44 billion to the new unemployment benefit, an amount that could last just six weeks if all the states joined the program provided there were still many people left. there are jobs due to the pandemic.

At first, the Trump administration said states were required to spend 25% of the new $ 400 weekly benefit. Many states, which are facing budget shortages, say they won’t be able to make money. The State Governors Association said states would bear “significant administrative burdens and costs.”

But subsequent Labor Department guidelines made it clear that states could count their existing payments against their respective $ 100. That would effectively limit the total federal increase to $ 300.

However, states are looking for ways to further clarify what is required and how to implement the program.

“As soon as we get confirmation of what Mississippi will have to do as a state, we will make it public,” a state Department of Employment Security spokesman said on Friday. Private.

Ohio Republican Governor Mike DeWine said in a press conference on Tuesday that if $ 300 is the final proposal from the administration “we want to get that money over to everyone as quickly as possible.”

A spokesman for the Ohio Department of Jobs and Family Services did not respond to a CNN request for how long it would take.

Countries took weeks to set up the show’s first round

Many states have been overwhelmed by the unprecedented number of job applicants as the pandemic forced businesses across the country to close. Millions of people waited for weeks to start receiving the money. It took them several months to come up with another program created by Congress to provide benefits to contract and freelance workers, who traditionally did not qualify.

Indivar Dutta-Gupta, professor of law and co-executive director at the Georgetown Center on Poverty and Inequality, says that program in more simpler ways than one of the states will have to stand up for the good. Latest.

“Thinking they will do it in two weeks is unbelievable,” he said, noting that some states may end up paying new benefits to their people once.

Pandemic and hurricane

Adopting Trump’s new system is the risk of taking money from FEMA designated for other types of disasters.

“We are entering a rather strong hurricane season,” said Isabel Soto, a labor market policy data analyst at the US Action Forum.

Both Republicans and Democrats proposed renewing unemployment benefits that expired at the end of July, but they differ in the amount to be paid. Republicans want to cut from $ 600 to $ 200 until states implement – another new system – that replaces about 70% of the wages of laid-off workers. The supplement expires December 31st. A bill passed in the House of Representatives, controlled by the Democrats, in May will continue to raise $ 600 early next year.

CNN’s Rebekah Riess contributed to the report.


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