Why Are Extended Unemployment Benefits Ending
In a letter to Congress, the Biden administration reminded states the expanded benefits were meant to be temporary. Virginia isnt alone in the reduced funding. Discussing next steps for states, the heads of the Treasury and Labor departments emphasized the importance of focusing on local needs.
There are some states where it may make sense for unemployed workers to continue receiving additional assistance for a longer period of time, allowing residents of those states more time to find a job in areas where unemployment remains high, Secretaries Janet Yellen and Martin Walsh wrote in their letter. The Delta variant may also pose short-term challenges to local economies and labor markets.
They also pointed out that the American Rescue Plan allocated $350 billion to state and local governments to support continuing response to the pandemic.
Nearly one year after the virus first arrived in the Commonwealth, weve built momentum in Virginia and across the country in our fight against the virus and in our economic recovery, said Rep. Abigail Spanberger in a press release in March. This legislation provides a major vehicle for maintaining this momentum.
Nearly 1.8 million residents have filed unemployment claims since March 2020, and women and people of color have been disproportionately affected by job losses.
How Many People Lost Federal Benefits On Labor Day
Apart from the millions of workers in states that discontinued federal unemployment aid early, more than 3 million additional people who were getting the weekly $300 bonus lost it on Labor Day. If they’re still eligible to collect state unemployment insurance , they’ll continue to receive some compensation. But that compensation will return to pre-pandemic benefit levels, which is a significantly lower amount.
In addition, around 7.5 million people were entirely cut off when the temporary pandemic unemployment programs expired, considered the largest cutoff of unemployment benefits in US history. Here’s how it breaks down, according to a detailed analysis of Labor Department data by the Century Foundation.
- 3.3 million people covered by PEUC: This category includes workers who would have no longer been eligible to receive unemployment because they passed their state’s benefit window . The program provided up to 53 weeks of additional aid for those who had exceeded state allowances.
- 4.2 million people covered by PUA: This category includes workers who do not normally qualify for any form of federal or state unemployment compensation, including freelancers, gig workers, independent contractors and part-time workers. During the pandemic, the program also supported those who couldn’t work because they were taking care of a dependent.
Va Vec Latest News And Status On Pua Peuc And $300 Weekly Payment Or Claim Issues And System Updates
The VEC has provided the following updates for claimants around the extended coverage period funded under the Biden ARP stimulus bill:
- You do not need to reapply for the extended benefit weeks. The VEC will automatically enroll you in the appropriate program extension .
- However, if you are notified that your benefit year has ended you must file a new traditional claim to establish a new benefit year.
- You should continue to file your weekly claim for benefits as you normally would as long as you remain unemployed.
- You will not need to contact the VEC in order for these program extensions to take effect. The VEC will mail you a Monetary determination that reflects the increase in eligibility.
- The additional weekly payment of $300 under the FPUC program will be extended through September 4, 2021 as well.
- The Mixed Earner Unemployment Compensation program which provides $100 extra per week to non PUA recipients who have had mixed income will be available from April 26, 2021.
There are however some known issues many claimants are reporting per the comments forum below this article. This includes:
I will post ongoing updates as they are released so stay tuned via the options below.
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Could Pandemic Benefits Be Renewed
White House officials made it clear they were not planning to continue the enhanced jobless benefits past the Labor Day expiration, saying they were intended to be temporary. When states began pulling out of pandemic-era unemployment programs early, Labor Department officials said their hands were tied and that they couldn’t counter decisions by governors.
Meanwhile, given the uncertainties of COVID-19, new quarantine restrictions could be imposed, which could lead to more layoffs. President Joe Biden has passed the buck to the states, telling governors they can use recovery funds to help those struggling with unemployment.
According to an Aug. 19 letter by Labor and Treasury Department officials, states can use $350 billion of pandemic funds that Congress allocated in the American Rescue Plan to continue paying unemployed workers. The letter says that in areas where unemployment remains high, “it may make sense for unemployed workers to continue receiving additional assistance for a longer period of time,” which would allow those individuals to find a job.
It’s not clear at this time which states will choose to use any leftover pandemic funds to continue jobless benefits. According to a CBS News report, not every state has shut the door to continuing some benefits, with some local officials reviewing options for providing assistance after the Labor Day expiration.
End Of Federal Enhanced Benefits In Virginia
The VEC has confirmed that claimants on the PEUC, PUA, MEUC and FPUC programs will file/certify for benefits for the last time covering the week ending September 4, 2021. Since the beginning of these programs, the VEC has issued over $14 Billion in benefits.
Any active claims, with or without remaining balances, will expire after this date and any weeks after Sep 5th will NOT be paid. The only exception are retroactive payments for validated claims after a successful determination or appeal.
While there has been a lot of discussion around extending pandemic unemployment benefits, the Biden administration has confirmed that states will have to use already allocated stimulus funding to expand or extend traditional state unemployment programs. The VEC has not indicated that is planning to do so at this stage, but I will post updates if things change.
Some claimants may be eligible for State Extended Benefits , but after September 4th all claimants must have a regular UI claim to continue receiving benefits. Also see the VEC website for other support and benefit programs.
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Biden Stimulus Bill Extensions
Under President Bidens $1.9 trillion federal coronavirus relief package, known as the American Rescue Plan , enhanced unemployment benefits have been extended until September 6th . This includes further extensions to the PUA program, PEUC program, $300 weekly payment under the FPUC program and $100 Mixed Earners program. There were also provisions in the Biden Stimulus package for Unemployment tax breaks on the first $10,200 of benefits received in 2020.
What Manchin May Have Right
According to the Labor Department, the unemployment rate dropped in July from 5.9% to 5.4%, a 16-month low. In addition, the economy has recovered from the relatively brief pandemic-related recession. With the Commerce Departments Bureau of Economic Analysis reporting economic growth of 6.5% in the second quarter of 2021, there’s little doubt that the U.S. economy has bounced back.
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What Is The Impact Of These Programs
Earlier this year, many Republican-controlled states cut federal unemployment benefits in an effort to fill job vacancies. Even locally, some conservative mayors have pointed to that assistance as the reason why some industries have found it difficult to staff up.
One of our iconic restaurants, Marys had to close due to lack of people to work there, Mayor of Virginia Beach Bobby Dyer told 13 News Now in April. The blessing and the curse was the unemployment people were getting. People elected not to go back to work even though they had the opportunity.
But recent research shows states with extended unemployment benefits experienced greater job growth since April compared to states that cut benefits.
According to the Economic Policy Institute: Between April and July, states that cut UI benefits averaged overall job growth of 0.9%. States that maintained the full federal UI benefits saw average job growth of 1.6%.
In other words, cutting the expanded unemployment support did not force people back to work.
Is It Too Late To Apply For Unemployment Insurance
If you’ve been laid off or furloughed, you can apply for unemployment benefits in your state. Once the state approves your claim, you can apply to receive whatever state benefits you’re entitled to. Because states cover 30% to 50% of a person’s wages, there isn’t a single sum you could expect on a national basis. Each state’s unemployment insurance office provides information to file a claim with the program in the state where you worked. Some claims may be filed in person, by phone or online, so it’s best to contact your state’s office directly.
Eligibility criteria vary from state to state, but the general rule is that you should apply if you’ve lost your job or been laid off through no fault of your own, including if it was due directly or indirectly to the pandemic. You can check on your state’s requirements here. In February, the Department of Labor updated its unemployment eligibility requirements to include people who refused to return to work due to unsafe coronavirus standards.
As for self-employed workers and freelancers who are losing PUA coverage, some online groups are calling to extend pandemic unemployment programs through the crisis and offer more information.
We’ll continue to update this story as we receive more details.
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Who Can Still Apply For Unemployment
While pandemic unemployment has ended, regular unemployment is still available.
Each state sets its own guidelines on how it issues unemployment insurance. In many cases, unemployment is available to salaried workers that lose their jobs through no fault of their own.
Applicants must meet work and wage requirements and there is a limit for how many weeks can be claimed.
Are Unemployment Benefits Ending
Yes, all pandemic unemployment benefits ended Monday on Labor Day, with no grace period to file beyond this date. Payments will be made through the week ending on Friday. At that point, many unemployed Americans will see their benefits cut by $300 a week.
Since the onset of the coronavirus pandemic, the federal government has delivered more than $800 billion in unemployment benefits.
Unemployment checks, originally $600 and then lowered to $300, were enacted last year under the CARES Act by former President Donald Trump. For the first time, independent contractors and gig workers who had lost income due to the economic downturn received unemployment known as the Pandemic Unemployment Assistance.
The government also continued to boost unemployment through the Federal Pandemic Unemployment Compensation in states with reduced unemployment insurance, paying on average an additional $334.
In many cases, jobless Americans could collect both.
Through the American Rescue Plan passed in March, President Joe Biden extended all of these programs, including the maximum duration from 24 to 53 weeks. In states with high unemployment, people could receive up to 86 weeks of benefits.
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Whats Next For Workers
While the unemployment rate has been ticking down throughout the summer, its apparent the post-pandemic recovery will be slow and steady, not the near-immediate bounceback economists had initially hoped to see.
And that moderate recovery could be amplified by the end of unemployment benefits come September. Unemployment payments allow recipients to contribute to the economy by spending on housing, groceries and child care. And although the child tax credit expansion boosts income for some households, it may not fill a widespread spending gap that could start to snowball once unemployment benefits run out.
What Is Federal Unemployment Extension In Virginia
An unemployment extension is administered by the federal government in partnership with Virginia. There are two parts to the program: Emergency Unemployment Compensation and Extended Benefits . EUCs federal unemployment extension was temporarily enacted during the 2008 recession to prevent harm to unemployed individuals. The Extended Benefits program was the permanent program created for times when Virginias unemployment rate rises above a certain rate.
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Virginia Unemployment News And Vec Updates On End Of Enhanced Benefit Programs $300 Fpuc Pua And Peuc Payment And Claim Issues
The Virginia Employment Commission administers the unemployment compensation program for the Commonwealth and has received an unprecedented number of unemployment claims. Since the beginning of the pandemic, VEC has received over 1.5 million claims, a ten times or an over 1000% increase from the previous year.
This surging demand has caused significant delays in the approval and processing of unemployment claims in Virginia. It has also meant ongoing issues with rolling out the 2021 extensions to the enhanced unemployment programs outlined below. You can see further feedback in the 1000+ comment forum below.
Several readers have commented on missed or delayed payments for September. The VEC is aware of a situation concerning benefit payments covering the week ending September 4, 2021. The issue primarily concerns the PUA program. There has been a delay in issuing some of the payments to those who are under this benefit program. The VEC is working to resolve the situation and I will post another update here as additional information becomes available.
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About The Benefits Under The Virginia Unemployment Program
In order to claim unemployment benefits in VA, you must receive a Notice of Deputys Determination from the Virginia Employment Commission and follow its instructions, including registering for any programs for which you were eligible.
If you are required to provide follow-up information, a confirmation phone call, or registration, your weekly unemployment claim benefit payment could be delayed or denied.
You may take any denial of federal unemployment benefits to an appeal committee that will determine whether you had a justifiable excuse not to provide the information.
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Why Did Benefits End Early In So Many States
Citing labor shortages in the spring, 26 state governors claimed pandemic-related unemployment benefits were producing limited incentives for workers to take jobs. Many economists and analysts disagreed, highlighting several factors that prevented people from finding suitable work, including low wages, lack of health care, inadequate child care and fear of contracting COVID-19.
With unemployment claims still fluctuating as the economy struggles to return to pre-pandemic “normalcy,” reports are showing that the premature cancellation of the federal programs had little impact on labor markets. A recent JP Morgan Chase Institute study confirmed that states that ended supplemental unemployment insurance programs during the summer saw a limited impact on job growth.
According to an August report by the Century Foundation’s Andrew Stettner, “Politics, not economics, drove the attack on unemployment insurance.” The states that cut off the enhanced benefits before the federal expiration were mostly Republican-led.
Arkansas, Indiana and Maryland were slated to cut off benefits early, but successful lawsuits forced those states to preserve the federal coverage, at least temporarily. In issuing their rulings, judges noted that the ending of benefits made it harder for the unemployed to afford basic needs. Lawsuits were also filed against state governors elsewhere, which were either denied by judges or are still held up in the courts.
Learn How To Apply For Unemployment Benefits In Virginia
Completing a Virginia application for unemployment insurance is easy if you know all the requirements. First, check all personal and employee information on your VA unemployment EDD application, and if anything is not up-to-date or accurate, including the dates of employment, make corrections to your application.
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Federal Pandemic Unemployment Benefit Programs Including An Extra $300 A Week Coming To An End In Virginia Next Month
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A variety of federal jobless benefits designed to provide COVID-19 pandemic relief to the unemployed in Virginia are scheduled to end in a little less than a month even as some people are still struggling to find work or say they have not received previous benefits.
The Virginia Employment Commission, which oversees unemployment benefit programs in the state, said Friday that it has started notifying recipients that all COVID-19 related federal unemployment programs will end on Sept. 4.
One of the programs includes a $300-a-week federal supplemental unemployment benefit. About 22 states, mostly led by Republican governors, have already canceled the programs.
The end of the programs comes even as some Virginians say they still havent received all of the benefits they believe they are owed. Some state residents say they will face difficulties when benefits are cut off.
Richmond resident Senchal Coles said he was laid off from his job at a local manufacturing plant in April 2020 and received unemployment benefits until April of this year. He reapplied for benefits under a special federally-funded extension of benefits while he continued to look for work and made plans to attend school at a community college this fall to learn HVAC skills.
I am still looking for employment in addition to planning for school, he said. I have put in two job contacts every time I file.
West Virginia To End Participation In Federal Supplemental Unemployment Benefit Program
CHARLESTON, W.Va. Effective June 19 at midnight, West Virginia will end its participation in all federally funded pandemic unemployment compensation programs. West Virginians have access to thousands of jobs right now, said Governor Jim Justice. We need everyone back to work. Our small businesses and West Virginias economy depend on it. Federal pandemic unemployment programs set to end on June 19 include the following:
- Federal Pandemic Unemployment Compensation , which provides for an additional $300 weekly payment to recipients of unemployment compensation
- Pandemic Unemployment Assistance , which provides benefits for those who would not usually qualify, such as the self-employed, gig workers and part-time workers
- Pandemic Emergency Unemployment Compensation , which provides for an extension of benefits once regular benefits have been exhausted
- Mixed Earner Unemployment Compensation , which provides an additional $100 benefit to certain people with mixed earnings
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