The Trump administration's proposed unemployment boost could be just $300 in some states — only half of the previous expired federal benefit

Advertisement
The Trump administration's proposed unemployment boost could be just $300 in some states — only half of the previous expired federal benefit
Yuqing Liu/Business Insider
  • Trump's executive order on unemployment could prompt only a $300 weekly boost to benefits in some states, depending how they carry out the program.
  • The Department of Labor told state agencies they can use what they already pay in benefits to count toward the "cost-sharing requirement," Bloomberg reported.
  • States are supposed to provide 25% of the funding, and the federal government picks up the rest.
  • The benefit amount would be half the $600 level it once was before expiring at the end of July.
Advertisement

The Trump administration's executive order on unemployment may end up raising weekly benefits by only $300 in some states — around half the $600 level they once were before expiring at the end of July.

Under the terms of the memorandum the president issued on Saturday, state governments would assume 25% of the cost and provide $100 in weekly benefits. The federal government would kick in $300, bringing the total supplement for unemployed people to $400.

However, the Department of Labor told states in an advisory email they don't need to shoulder some of the costs associated with implementing the program, Bloomberg reported. Instead, they can use what they already pay jobless people and count it towards the "cost-share requirement."

It means that some jobless people could see only a $300 bump in their weekly state unemployment checks, depending on how states end up designing their so-called "lost wages assistance" programs.

Read more: $200 billion in short-term aid, but no checks for individuals or small-business help: 3 Wall Street analysts lay out exactly what you need to know about Trump's coronavirus orders

Advertisement

It's still unclear how it will be implemented, given that many are strapped for cash because of a steep drop in tax revenues. States are also grappling with a massive backlog of unemployment claims, experts say, and it'll take months to assemble a parallel structure to distribute supplemental benefits if it gets off the ground.

The Trump administration's measure on unemployment came after the collapse in stimulus negotiations between top congressional Democrats and the White House last week. Trump also issued executive orders delaying the collection of the payroll tax and deferring student loan payments until the end of the year.

He also called for top government officials "to consider" whether an eviction moratorium is necessary in the order.

On unemployment, the White House is encouraging states to tap into federal money left over from $150 billion provided under the CARES Act earlier this year. But some have already allocated that funding toward other costs related to the pandemic, such as beefing up healthcare spending.

On Monday, Trump appeared to be open to tweaking the policy on the fly, adding to some of the confusion around it.

Advertisement

"We can terminate the 25 percent, or we don't have to do that," he said at a White House briefing, referring to the encouraged cost-sharing amount for states.

{{}}