From today’s Washington Post:
With days to go before enhanced jobless benefits expire, the White House and Senate Republicans are struggling to design a way to scale back the program without overwhelming state unemployment agencies and imperiling aid to more than 20 million Americans.
The hang-up has led to an abrupt delay in the introduction of the GOP’s $1 trillion stimulus package. The White House and Democrats have said they want a deal by the end of the month, but Senate Majority Leader Mitch McConnell (R-Ky.) suggested Friday that reaching an agreement could take several weeks, a timeline that could leave many unemployed Americans severely exposed.
“Hopefully we can come together behind some package we can agree on in the next few weeks,” McConnell said at an event in Ashland, Ky.
Part of the problem stems from a push by administration officials and GOP lawmakers to reduce a $600 weekly payment of enhanced federal unemployment benefits. The White House and the GOP disagree about how to do this, and talks remain highly contentious. They hope to release a proposal early next week.
After convulsing in March and April when the coronavirus pandemic shut down large parts of the United States, the economy showed signs of regaining its footing before sliding again in recent weeks. The effects of numerous stimulus programs appear to be wearing off, and the pace of layoffs has picked up again. Layoffs that many Americans thought would be temporary have dragged on and become permanent, particularly as new cases of the novel coronavirus surge in parts of the country.
This has put enormous pressure on state unemployment programs, which typically pay out about 45 percent of a worker’s prior wages. In March, Congress approved the $600-per-week emergency bonus for every unemployed worker on top of that traditional payment, funneling hundreds of billions of dollars to newly jobless Americans as the pandemic hit the country.
That federal benefit, being received by more than 20 million people, is to expire at the end of this month. And the expiry comes as a federal eviction moratorium also is ending, creating a dynamic that could greatly stress cash-strapped families. In practice, the coming lapse in the jobless benefit means millions of workers are receiving their last enhanced benefit payment this week.
Read the complete article here.