President Trump signed an executive order Saturday that seeks to partially extend the $600 per week federal unemployment benefits that expired July 31. The order calls for $400 a week in extra unemployment aid, 33% less than laid-off workers previously were receiving. It also comes with several other caveats, according to an article in Forbes on Monday.
For one, the federal government only would cover 75% of the benefit, or $300 per week. States would be required to cover the additional $100 per worker, using their allocation of the Coronavirus Relief Fund, which was distributed to states to cover COVID-19 expenditures not already accounted for in state budgets. It’s unclear whether governors will sign on to the program, as many states already are under budget pressures and facing reduced tax revenues as a result of the virus. In addition, many states already have earmarked the money they’ve received from the CRF, according to a report from the National Association of State Budget Officers.
Even if a state does opt in to the new unemployment program, an analysis in the Washington Post suggests the order may not cover the unemployed workers at the bottom of the nation’s income distribution. The order stipulates that any out-of-work Americans currently receiving less than $100 a week in state unemployment insurance would not be eligible for the new program.
Some experts also caution that the money for the program, which would come from the Homeland Security Department’s Disaster Relief Fund, likely would run out in five weeks or less.
“At best, Trump’s order is simply kicking the can a few weeks down the road,” the Forbes article noted.
