Complete Story
07/15/2020
$600 Unemployment Payment Ends Soon
Source: Oscar Gonzalez, c|net Personal Finance, July 8, 2020
When cities began locking down due to COVID-19 in March, the federal government passed the $2.2 trillion Coronavirus Aid Response and Economic Security (CARES) Act to help Americans and American businesses. Part of that package included additional unemployment benefits for people who had lost their jobs because of the pandemic.
Nearly 21 million people are currently receiving unemployment benefits along with 9.7 million self-employed workers. With states providing between $235 and $1,220 per week in assistance, the additional $300 to $600 per week in Federal Pandemic Unemployment Compensation (FPUC) is a major component of many people's financial lifeline.
When the program launched in March, it was scheduled to last for four months, ending on July 31, 2020. Well, we're almost there. And so far, Congress doesn't appear to be in any rush to renew it.
When exactly does the $600 booster fund end?
While the Cares Act's FPUC expires on July 31, those who received the extra money may see it go away a few days before the end of the month. A statement from the Department of Labor on June 24 said, "The $600 can be paid for weeks ending no later than the week ending prior to Friday, July 31," according to a report from USA Today. All states with the exception of one have Saturday as the date to claim unemployment -- New York does this on Sunday. This claim is then paid in the first half of the week depending on the state. This means people receiving FPUC will receive their final additional $600 prior to the July 31 expiration date.
What efforts are underway to extend enhanced unemployment benefits?
A number of Congressional Democrats continue to push for an extension of unemployment benefits. The HEROS Act proposed by Congresswoman Nita Lowey, a Democrat from New York, would extend the Federal Pandemic Unemployment Compensation to December 31, 2020. It would also pave the way for a second stimulus payment.
The Worker Relief and Security Act has been proposed by Sen. Michael Bennet, a Democrat from Colorado; Sen. Jack Reed, a Democrat from Rhode Island; and Rep. Don Beyer, a Democrat from Virginia. It would extend unemployment benefits until President Trump declares the state of emergency for COVID-19 is over. At that point, benefits would continue for another 30 days and then come to a close. Those still on unemployment would still receive weekly funds -- but the amount would be reduced over the course of 13 weeks depending on the unemployment rate of each state.
Both proposals have been opposed by Senate Republicans including Sen. Mitch McConnel from Kentucky and Sen. Lindsey Graham from South Carolina. GOP leaders have taken issue with the enhanced unemployment saying it discourages workers to return to their jobs. Treasury Secretary Steven Mnuchin spoke to Bloomberg on June 23 saying there are discussions of another stimulus bill. However, he went on to say it would focus on the businesses most affected by the pandemic.
What happens on July 31 if no additional legislation is passed?
That additional $600 weekly bump will be discontinued. Those still eligible for unemployment benefits will continue to receive them from their states.
