The Covid-19 pandemic unemployment allowance ends tomorrow for millions of Americans.
Here’s what you need to know:
The $ 300 weekly unemployment insurance will end for more than 7 million Americans valid tomorrow. And it brings economic uncertainty in the revival of Covid-19. Approximately 26 states have already completed strengthening unemployment benefits before their expiration date, and some governors say these unemployment benefits are detrimental to Americans returning to work. Pandemic relief was an essential way for unemployed Americans to pay rent, food, and other necessities during the Covid-19 pandemic. Here’s what the end of these unemployment benefits means to you:
Which unemployment allowance will end?
Four types of federal unemployment allowances will end.
- Federal Pandemic Unemployment Compensation;
- Pandemic emergency unemployment compensation;
- Unemployment compensation for mixed-income earners;
- Pandemic unemployment support
Federal Pandemic Unemployment Compensation
This is a supplementary employment benefit of $ 300 a week (although it can be as much as $ 600 a week).
Pandemic emergency unemployment compensation
These unemployment benefits vary from state to state, but provided financial relief to those who had already run out of state unemployment benefits, which is usually 26 weeks.
Unemployment compensation for mixed-income earners
This unemployment allowance program provided $ 100 a week to those who worked as both independent contractors and employees.
Pandemic unemployment support
These employment benefits have expanded their eligibility criteria to include self-employed and freelancers.
What kind of employment insurance is available?
You may be covered by unemployment insurance in some states. This is separate from the federal unemployment insurance that ends.
How many people lose unemployment insurance
The termination of these employment benefits represents the largest in US history. The Century Foundation estimates that 7.5 million Americans will lose their unemployment benefits. This too:
Pandemic unemployment support: 4.2 million people
Once the pandemic unemployment support is over, these individuals (mostly self-employed or freelancers) will not be covered by federal or state unemployment insurance. According to the Century Foundation, California will affect more than 1 million workers, and Indiana, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio and Pennsylvania will each affect more than 150,000.
Pandemic Emergency Unemployment Compensation: 3.3 Million People
The end of pandemic emergency unemployment compensation will affect 3.3 million workers. According to the Century Foundation, 900,000 workers are affected in California, and 125,000 workers in Florida, Illinois, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania each. Some of these workers are eligible for state unemployment benefits.
Why do these unemployment benefits expire?
In March 2020, in response to the Covid-19 pandemic, Congress passed temporarily strengthened unemployment insurance as part of the $ 2.2 trillion stimulus Care Act. In March 2021, Congress extended these unemployment benefits until tomorrow as part of a stimulus package for the American Rescue Program. However, Congress has chosen not to renew these unemployment benefits anymore. This unemployment insurance termination occurs at the same time that other Covid-19 pandemic remedies expire as well. For example, the US Supreme Court has suspended the federal eviction moratorium imposed by the Centers for Disease Control and Prevention (CDC), noting that it has not been approved by Congress. The end of the peasant eviction moratorium and unemployment benefits can also bring bad news to other federal spending, such as allowing large student loans.
Will Congress Extend Unemployment Allowance?
There are no signs that Congress will expand these enhanced unemployment benefits. Why? These unemployment insurance programs have always been temporary and aimed at linking to the Covid-19 pandemic. With the further resurgence of Covid-19, Congress may approve new unemployment benefits in the future. However, there are no immediate plans to extend relief beyond tomorrow. That said, under the US Rescue Program, Congress has approved $ 350 billion in the state to provide financial relief for unemployment.
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