What You Need to Know About the So-Called Unemployment Extension
This weekend, President Trump signed an executive order to continue federal contribution to unemployment assistance during the coronavirus pandemic. However, what it means may not be clear to all Americans. Because, although it seems like a done deal, your state may not be able to participate. And, if your state doesn’t have the money – you are completely out of luck and will not get any of the $400.00 pandemic unemployment. Whether states can figure this out remains to be seen.
Of course none of this addresses a second round of stimulus checks.
What Is The President’s Executive Order to Extend Unemployment?
This lost wages assistance program will provide $400 per week to eligible claimants from the week of unemployment ending August 1, 2020. Since the previous act ended on July 31, and in most states actually stopped on July 25, that could mean no lapse. It would be available through the week ending Sunday, Dec. 6, 2020, or until the balance of the Department of Homeland Security’s Disaster Relief Fund falls to $25 billion (from roughly $70 billion), whichever occurs first. Some are estimating it won’t last more than five weeks. That would buy time until Congress can reconvene and vote in a more long-term solution.
So, What’s The Problem?
But, here’s the problem: States must agree to enter into a financial agreement with the federal government for residents to receive this new unemployment boost, and they also need to pay 25%. Unfortunately, many states don’t have that money and haven’t had any warning that they needed to plan for this. If a given state doesn’t have those funds and doesn’t enter into an agreement with the federal government, its residents won’t be privy to an unemployment boost (though those same jobless workers will still be entitled to the standard unemployment benefits they’d otherwise get to collect).
To be an eligible claimant you need to, for the week lost wages assistance is sought, receive at least $100 per week of any of the following benefits:
- Unemployment compensation, including Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex‑Service members (UCX);
- Pandemic Emergency Unemployment Compensation (PEUC);
- Pandemic Unemployment Assistance (PUA);
- Extended Benefits (EB);
- Short-Time Compensation (STC);
- Trade Readjustment Allowance (TRA); or
- Payments under the Self-Employment Assistant (SEA) program.
Since many of our readers are affected by unemployment, stores & restaurants closing and other pandemic-related news, we will keep you updated here!