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Weekly Price $ 400 Unemployment Benefit: When would Trump’s new executive action begin, and is it legal?



unemployment money

More unemployment benefits can come to those who need it.

Sarah Tew / CNET

The CARES Act which went in March included a federal unemployment benefit of $ 600, which expired on July 31st. With no agreement in place between Republicans and Democrats for another package of incentives, President Donald Trump signed an executive memorandum Saturday to restart the extra weekly funds, but at $ 400 instead of $ 600.

“I’m taking steps to provide an additional $ 400 a week in extended benefits,” Trump said during a news conference at his golf club in Bedminster, New Jersey. “States will be called upon to cover 25% of the costs through existing funding such as the tens of billions of dollars available to them through coronavirus relief fund. Under this plan, states will be able to offer greater benefits if they choose, and the federal government will cover 75% of the costs. “

According to the executive memorandum, the $ 400 amount would begin during the week ending August 1 and will run through December 27.

Asked at a White House press conference on Monday when the recipients of the unemployment benefit would receive $ 400, Press Secretary Kayleigh McEnany said, “We hope to see it soon and soon.” She says the speed of getting the money to the eligible ones depends on the states, because it is the states that will have to kick in $ 100.

Treasury Secretary Steve Mnuchin said during a second White House press conference on Monday that most states could start $ 400 unemployment benefits “within a week or two.” President Trump said that the 25% funding from the state can be terminated depending on the state.

Along with the repayment of the improved unemployment benefit, Trump also signed three other executive measures, for a payroll tax vacation, federal student loan assistance, and eviction protection. Just like the $ 400 unemployment benefits, there are questions about the legality of these orders.

Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer released a joint statement Saturday night in response to Trump’s executive action and called on Republicans to return to the negotiating table.

“Today’s meager announcements from the president show that President Trump still does not understand how serious or urgent the health and economic crises facing working families are,” the two lawmakers said. “For example, not only does the president’s announcement actually extend the draft moratorium, it provides no support to help pay the rent, which will only leave desperate families to see their debt pile higher. Instead of approving a bill, President Trump is now to reduce families’ unemployment benefits and push states forward in budgetary crises, forcing them to make devastating cuts to life or death services. “

The weekly $ 600 benefit, included in the Pandemic Unemployment Compensation Program, was a popular feature of the original coronavirus legislative package that expanded federal unemployment benefits to help those affected by the COVID-19 pandemic. With HEALS Act (which stands for health, financial assistance, liability protection and schools) as officially proposed, Democrats and Republicans are working through a political stalemate.

Update: The current political context and prospects

Before President Trump signed the executive memorandum to restart the unemployment benefit bonus, Democrats and Republicans could not agree on the next stimulus package. Negotiations collapsed last Friday after a “disappointing” meeting, according to Schumer, according to a report from CNBC

Read more: Coronavirus Unemployment: Who is covered, how to apply and how much it pays

On Monday, Mnuchin told CNBC that the White House and Republicans were open to resuming talks with Democrats.

Since the President’s signing, the Democratic leadership has talked about whether the executive measures taken were constitutional, but they have not yet explained whether an action would be filed to prevent the orders from being carried out.

“My constitutional advisers say they (the executive) are absurdly constitutional,” Pelosi told CNN on Sunday.

Asked if the negotiations would continue, Pelosi said she hoped they would.

California Gavin Newsom said Monday that his state does not have the funds to facilitate 25% of the $ 400 weekly bonus, according to a report from the Los Angeles Times. Newsom said the amount needed to cover the state would be $ 700 million.

What efforts are underway to increase improved unemployment benefits?

The Congress Democrats have continued to push for an extension of the unemployment benefit. The Hero Act, which was passed by the House of Representatives in May but not adopted by the Senate, would have extended the FPUC until January 31, 2021. It would also have paved the way for a second stimulus payment.

Workers’ Relief and Safety Act, proposed by Democrat Michael Bennet and Jack Reed and Rep. Don Beyer, would extend unemployment benefits until Trump declares the COVID-19 emergency is over. At that time, the benefits would continue for another 30 days and then end. Those who are still unemployed would still receive weekly funds, but the amount would be reduced over 13 weeks depending on the unemployment rate in each state.

Both proposals have been opposed by Republicans, including McConnell. GOP leaders have taken issue with rising unemployment, saying it discourages workers from returning to their jobs. Senator Lindsey Graham said in April that approval of unemployment benefits would be passed “over our dead bodies.” McConnell said on July 6 that the next relief proposal could include one second stimulus control for those who earn $ 40,000 a year or less.

Mnuchin told Bloomberg on June 23 that another stimulus proposal is being discussed. However, he said it would focus on the companies most affected by the pandemic.

On July 1, the Senate Democrats introduced a bill to extend unemployment to March. The available money would be linked to state unemployment. When a state’s three – month average unemployment rate falls below 11%, the amount of aid would be reduced by $ 100 until the average falls below 6%.

What is the HEALS Act?

The White House and Republicans in the Senate have now agreed on the terms of a support package. The proposal, called HEALS Act , was introduced by McConnell on July 27. The $ 1 billiards package covers several programs created or modified by the CARES Act, such as unemployment insurance, the Paycheck protection program, and financial income.

Not all details were made available immediately, but the GOP has proposed reducing the improved unemployment benefit from $ 600 per week to $ 200. Then, in September, the benefit would be adjusted and combined with the states’ unemployment benefits to 70% of a worker’s salary.

If Congress decides to reintroduce a federal unemployment benefit bonus – in any amount – it will likely take two to four weeks for payments to flow to states and then recipients, according to the Economic Policy Institute. So far, the proposal has been introduced only in the Senate. Democratic congressmen are currently negotiating with the GOP for information on the plan.

What is the CARES Act?

Congress passed $ 2.2 trillion CARES Act in March to help Americans and American businesses after cities began to be shut down due to the pandemic. The package included additional unemployment benefits for people who lost their jobs due to the pandemic.

Since the introduction of on-the-spot protection rules, tens of millions of Americans have received the extra federal unemployment benefits. With states providing between $ 235 and $ 1,220 per week in aid, the additional $ 600 per week has been an important part of many people’s economic lifeline.

Who was entitled to increased unemployment?

If you have been fired or covered, you are entitled to apply for unemployment benefits from the state where you live. When the state approves your claim, you can receive the state benefits you are entitled to. Because states cover 30% to 50% of a person’s salary – some states give more while others offer less – they added an extra $ 600 from the federal government to help fill the gap.

How does the CARES law help people who have been fired or competed?

Each state has its own criteria for who is entitled to unemployment – and what these benefits mean. This includes how much money you are entitled to receive, which is usually based on your income and how long you are entitled to receive it, which is usually based on how long you have had your last job. The CARES law provided a booster fund – which adds up to $ 600 extra per week – and also extended the states’ unemployment benefits to a maximum of 39 weeks instead of the typical 26 weeks.

How is the unemployment benefit calculated?

The state decides how much each applicant should receive, usually based on an individual’s gross income. It varies from state to state but is usually between $ 300 and $ 600.

How can I find out if I am entitled to unemployment benefits?

Eligibility criteria vary from state to state, but the general rule is that you should apply if you have lost your job or have been exceeded by your own fault. This would include a job lost directly or indirectly to the current pandemic.

How do different states handle this?

Again, the duration and amount of the benefit varies. Most states provide up to 26 weeks of funding, although others, such as Georgia, limit the benefits to 12 weeks. On the other hand, Delaware will provide benefits for up to 30 weeks. The weekly amount depends on the applicant’s gross income when they were hired and ranges between $ 300 and $ 600, with a few exceptions. Mississippi pays up to $ 235, while Massachusetts’ highest is $ 1220.

Where can I find more information about my state’s policy?

Each state’s employment office provides more information about its special unemployment benefits.

How does the CARES law help self-employed people?

The CARES Act also created the Pandemic Unemployment Program, which provides benefits to individuals who would not normally be entitled to unemployment benefits from states such as gamblers, freelancers, independent entrepreneurs and small businesses whose incomes have been affected by the pandemic. According to the CARES Act, PUA funding will be available until 31 December 2020.




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