States Now Providing Extra $300 Weekly Unemployment Benefitsand These Five Will Pay $400
Its been nearly a month since since President Donald Trump issued an executive action establishing a lost wages assistance program to provide weekly supplemental unemployment benefits to millions of Americans whove lost jobs or had wages cut as a result of the coronavirus pandemic.
Since then, nearly every state has applied for and been approved to issue the extra $300 weekly federal unemployment benefits for at least three weeks. And five states have indicated they will kick in an additional $100 a week to boost the weekly benefits to $400 for those who qualify.
Which states have yet to be approved, and which will offer additional benefits? Heres how to track what your state is offering.
A security guard hands out a benefits instruction sheet outside of a Michigan Unemployment Agency … office.
Did Cutting Funds Get Americans Back To Work
As legal battles over enhanced unemployment benefits continue in states including Ohio, Oklahoma and Texas, economists say its too early to tell whether the GOP argument that ending the payments early will get Americans back to work more quickly and help to fill labor shortages holds up.
The Labor Departments June jobs report found 850,000 new jobs were added largely before federal benefits were cut. That shows steady growth, contrary to claims that enhanced unemployment was keeping people home, said Andrew Stettner, a senior fellow at The Century Foundation, a progressive, non-partisan think tank.
The number of unemployment beneficiaries in states that cut the extra $300 a week in federal benefits, according to a June 27 analysis by The Wall Street Journal. However, Stettner noted, unemployment was already on the decline in many of these states anyway, and initial claims have also gone up in some states that discontinued the payments, such as Texas. Looking at the last two weeks of unemployment data, he said, I dont see clear evidence that taking the benefits away is getting people back to work.
A recent study conducted by Indeed found that unemployment benefits were among a number of factors keeping some people from going back to work, but they fell below COVID fears and child care as the most common reasons people gave for putting their job search on the backburner.
How Long Will The Benefits Last
Initially, experts expected the benefits to last around five weeks, but under the latest guidance from the Federal Emergency Management Agency , jobless Americans are guaranteed the extra $300 for only three weeks.
States must apply for the additional unemployment benefits first. When approved, they will receive an initial obligation of three weeks of needed funding, according to the FEMA guidelines. Any extra after that will be decided on a week-by-week basis until the funds deplete.
The FEMA funds are not just for funding the unemployment benefits they also fund disaster relief, meaning they could run out sooner than expected.
It all depends on whether or not there’s enough money in the disaster relief fund, Evermore said.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter .
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What Is Federal Pandemic Unemployment Compensation
The Federal Pandemic Unemployment Compensation program, authorized by the CARES Act and renewed by subsequent legislation and a presidential order, initially provided $600 per week in extra unemployment benefits to unemployed workers in states that opted into the program.
In August 2020, the additional payment was lowered to $300, the amount continued by the American Rescue Plan Act of 2021 through Sept. 6, 2021.
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Lost Wages Assistance Program
Lost Wages Assistance is a federal program that adds $300 for each week the program remains federally funded.If you received unemployment benefits for the approved weeks and you were unemployed or working fewer hours due to disruptions caused by COVID-19, you may be eligible for these benefits.
The LWA program is funded only for the approved weeks listed below. Washington was approved for the maximum number of weeks available.
- We process payments weekly. We will pay you for all weeks listed below that are in Paid status. If your status for a week is not yet Paid, we will issue a payment the next time we process payments if the week changes to Paid status.
- We issue payments by direct deposit or debit card. The money will come in a deposit separate from your normal weekly payment.
- See more in the LWA payments section below.
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There Is Limited Evidence That Pandemic Ui Is Holding Back Job Creation
Outside of the minimum wage, the employment incentives of unemployment insurance have been one of the most studied issues in microeconomics. Unemployment benefits have a modest impact on the length of unemployment, with recent studies finding very modest elasticities between increases in unemployment benefit rates and the length of time unemployed. This includes a close comparison of neighboring counties in states that had access to ninety-nine weeks of unemployment during the great recession and those that did not. Careful economic research during the pandemic found that major changes in pandemic unemployment compensation, first from $600 to $300 in September, and then from $0 to $300 in January, had little impact either way on job finding rates. In particular, these studies contradict the conventional wisdom that non-college graduates and those getting the biggest boost in UI would be incentivized to stay home from work. For many, the COVID-19 pandemic has represented a uniquely temporary economic downturn. Transitory economic and public health barriers are driving many into unemployment and it is changes in these factors, not UI, that are largely driving the trend. To the extent that there are pockets of worker shortages, such as in the restaurant sector, its good news that employers are being forced to raise wages after months of reduced tips and high risks of infection from COVID-19 drove many away from these jobs.
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FEMA approved Alabamas application on August 21, 2020.
Alaska: On August 13, 2020, a press release stated that Governor Mike Dunleavy had authorized the Alaska Department of Labor and Workforce Development to begin the FEMA application process. The statement said the process would result in a $300 weekly increase in unemployment benefits.
FEMA approved Alaskas application on August 23, 2020.
Arizona: FEMA approved Arizona’s application on . Arizona started sending out $300 weekly payments to eligible claimants on August 17th.
California: The Golden State has now applied to FEMA to provide eligible unemployment claimants an extra $300 a week.
FEMA approved Californias application on August 22, 2020.
Colorado: FEMA Approved Colorado’s application on . In response to written questions submitted to the Colorado Department of Labor and Employment , we received a written response on August 17, 2020 that a decision had not been made as to whether the weekly benefit would be $300 or include a state matching benefit of $100. In terms of timing, the written statement said that they are still estimating development timeliness as systems require reprogramming. We have no timeline on . . . payments at this time.
In a press release dated August 19, 2020, CDLE announced that benefits would begin to go out in mid to late September.
FEMA approved Idahos application on August 19, 2020.
FEMA approved Indianas application on August 21, 2020.
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Fact Sheet: Whats At Stake As States Cancel Federal Unemployment Benefits
-
Andrew Stettner
Senior Fellow
On May 4, 2021, Montana Governor Greg Gianforte announced that his state was backing out of federal pandemic unemployment benefits, including the $300 per week supplement , Pandemic Unemployment Assistance for gig workers and others not eligible for UI, and Pandemic Emergency Unemployment Compensation for the long-term unemployed. Governors from South Carolina, Alabama, Alaska, Arizona, Iowa, Indiana, Idaho, Georgia, Missouri, Ohio, Wyoming, Mississippi, Arkansas, South Dakota, Tennessee, Utah, West Virginia and North Dakota quickly followed suit and more could follow. This fact sheet outlines the damage that these governors will inflict upon their most vulnerable populations and their economy by making this rash decision, and the potential harm to the recovery if more of the nations governors were to take a similar step.
States Have Signed On So Far
As of Sept. 17, funds had been approved for 49 states, plus Washington, D.C., and two territories:
Alabama
In the spring, when state unemployment systems were overwhelmed with claims, there were delays of weeks or even months because computer systems had to be updated and reprogrammed, and staff members trained.
Now states must again work out how to process a new program while they keep existing benefits flowing. New claims for state jobless benefits unexpectedly jumped in the most recent weekly report to 1.1 million.
On a conference call with reporters on Thursday, John P. Pallasch, assistant secretary for employment and training at the Labor Department, said it could take some states up to six weeks to figure out how to get a program up and running.
On Aug. 17, Arizona became the first state to start paying out. By Wednesday, five additional states Louisiana, Missouri, Montana, Tennessee and Texas had started paying out benefits, according to the Labor Department.
Most states, however, said it could take until mid-September or later to reprogram computer systems and take other steps to get the money to recipients. Some states dont expect to send out funds until early October.
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How To Get Extra $300 Unemployment Payments
For the most part, it looks like recipients do not need to do anything special to get their extra $300 in unemployment benefits. For example, Minnesota states explicitly: “Applicants do not have to do anything extra to receive LWA payments.”
However, some states are a little vague on the particulars. Below, in our state-by-state guide, we’ve marked as “unclear” the states that have not clearly said on their unemployment website if a recipient needs to do anything in order to receive the extra $300.
Our advice is to read the fine print of your state’s unemployment benefits’ webpage , and follow their instructions, to make sure you are getting the most money possible. If you are already receiving unemployment, you should absolutely continue to do the same paperwork and file claims like usual.
S To Getting Lwa Payments With An Eservices Account
Answer the eligibility question If you have an eServices account, you will get an email from eServices saying that you need to answer an eligibility question. Select the link to answer one question to certify if you were unemployed or working fewer hours due to COVID-19.We will notify you in your eServices account to say whether you have been approved for Lost Wages Assistance. We will notify you by mail if you do not have an eServices account.If you are receiving Pandemic Unemployment Assistance , you dont need to answer the eligibility question because you already have. In that case, you wont receive a notice in eServices. We will automatically pay you the extra $300 for the weeks you are eligible.
- If you are eligible, the LWA payment will first be added to the Weekly benefit amount column and later to the Benefits paid column.
- If you are not eligible, the LWA payment might be added to the Weekly benefit amount column and then subtracted again.
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Seven States Approved For $300 Federal Unemployment Supplement For The Jobless
By: Laura Cassels– August 17, 2020 5:48 pm
The Federal Emergency Management Agency, or FEMA, has announced that seven states so far have been approved to receive federal Unemployment Insurance supplement funds of $300 weekly under a presidential executive order but Florida is not one of them.
Its not clear whether Florida authorities intend to apply for the funds, which would draw down $300 of federal funds to add to state-based funds for unemployment benefits. Gov. Ron DeSantis expressed interest last Tuesday but also caution, saying his legal team is assessing potential legal hazards.
Theres only so much you can do through executive action , DeSantis said then. I want to make sure theres no legal risk for us. If someone was to challenge this, then wed be left on the hook.
In Florida, the net state unemployment benefit, based on the number of weeks as well as the amount of $275 weekly, is the lowest in the nation, according to U.S. Department of Labor data analyzed by States Newsroom.
The states approved for federal unemployment supplements of $300 weekly are Arizona, Colorado, Iowa, Louisiana, Missouri, New Mexico and Utah.
According to FEMA, states requesting the supplemental funding must demonstrate they are contributing at least $100 of their own, and they may use CARES Act dollars allocated to them. But DeSantis has said he does not support using CARES dollars allocated to Florida because they are already obligated.
Republishing Guidelines
That $400 Boost More Like $300
So far, 49 states, the District of Columbia and two territories have been approved to take advantage of Trumps executive action-backed boost to weekly UI benefits known as the Lost Wages Assistance program. South Dakota is the only state to forgo participation.
When the president first announced the extended UI program, it was touted as a joint federal-state payout. States were required to front $100 and the federal government was responsible for covering $300, rounding the total boost out to $400.
Cash-strapped states, however, voiced concerns about being able to cover their portion of the bill, amid soaring health care and unemployment costs yet falling tax revenues. That led FEMA to eventually announce that states could use what they were already paying to count toward the match.
It made more states willing to sign onto the program , but it also meant that jobless Americans, in most cases, would see a $300 boost to their weekly checks, rather than the $400 that was initially broadcasted.
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How Does The Mixed Earner Unemployment Compensation Work
The mixed earner and unemployment compensation is meant to supplement the incomes of freelancers and gig workers who also happen to rely on traditional W-2 income.
An example of who this applies to would be a freelance photographer who buses tables on the side. Qualified applicants receive an additional $100 along with the standard $300 federal benefit.
National Developments On Extended Unemployment Benefits Since The Memorandum
The Memorandum raised some confusion, especially about the states contribution. The Presidents contemporaneous remarks indicated that the federal money would only be available for states that paid their $100 share.
But this implication was changed through a 6-page U.S. Department of Labor letter of guidance issued on August 12. It relieved states of paying the $100 share in order to receive the $300 federal contribution. States could pay the $100 share to their unemployed residents, in order to pay out a $400 weekly supplemental benefit. Or states could choose not to pay the $100, resulting in only a $300 weekly benefit.
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Most Unemployed Workers Will Get An Extra $300 A Week
The Federal Emergency Management Agency, which normally provides disaster relief, will provide $300 per recipient. An additional $100 was supposed to be supplied by states, but most are struggling to meet other expenses. Tax revenues have been sinking at the same time that costs like precautions to curb the spread of the coronavirus have soared. Ultimately the administration said the states basic benefit payments could be counted toward their $100 share.
As of Sept. 1, only three states, Kentucky, Montana and West Virginia, had decided to supply the extra $100. Vermonts plan to bring the total payment to $400 was awaiting approval from the states legislature. Kansas also had said it planned to supply the extra $100.
