President Donald Trump on Saturday authorized an additional $400 in weekly unemployment insurance benefits, a possible financial lifeline for the nation's 16.3 million unemployed workers. However while his memorandum makes those payments retroactive to August 1, the money could take weeks to reach individuals and amount to less than promoted for a few claimants.
Mr. Trump's efforts to partially restore the supplemental benefits, which died late last month, means that nations will have to set up new systems for administering the advantages, which could require considerable time to get up and running, based on unemployment specialists. Unemployed workers shouldn't count on the excess benefits landing in their bank account in the next few weeks.
Some countries also might not have the funds to provide 25 percent of their benefit, as suggested. That could observe the help sliced to $300 per week, half the additional weekly payment employees had been receiving before the end of July through the CARES Act.
To make sure, any additional financial aid would help the countless Americans who've lost their jobs and are struggling to find new job. However, the complexity of the unemployment system -- combined with the political and legal uncertainties around Mr. Trump's end-run after Congress failed to agree to a new stimulus package a week -- have opened a range of questions about the White House initiative.
"This is the tragedy -- workers are hoping to find this because the president promised it to them," said Michelle Evermore, senior policy analyst at the National Employment Law Project, an advocacy group. "It is likely to be a real challenge for states to say they could get this up and running"
States will likely have to install new strategies for administering the aid, as the federal part will stem from $44 billion in funds allocated for natural disaster relief. States can not use their current unemployment systems for benefits authorized out of Congress, NELP notes.
Here is what else you should know about Mr. Trump's move to jump-start the attempt to funnel extra unemployment aid to Americans:
When will I get the extra $400?
Do not expect to get the extra jobless benefit this month, said Andrew Stettner, senior fellow at The Century Foundation, a progressive think tank. Because states will need to construct a new system to manage the cash, they might not be able to disperse the funds until September, he explained.
"We're lucky if anyone gets this cash in August," Stettner said. "It's more likely to be in September at the earliest."
Already, some jobless workers are posting questions on social media about when they may get the extra help, pointing to Mr. Trump's memo stating it is going to start on August 1 for people who qualify. Rather, jobless Americans will most likely get back payments return to August 1 when the app starts up, Stettner said.
How long will the $400 payments continue?
Mr. Trump's plan would fund the excess unemployment benefits by tapping $44 billion from the nation's Disaster Relief Fund. That's enough for four or five weeks, according to Raymond James analyst Ed Mills.
What happens if my state can not provide funding?
This really is one of the biggest questions regarding Trump's directive, which says that the federal government will provide $300 in extra aid and the states will contribute an additional $100.
Many governors have already said the $100 per-person contribution is beyond reach, together with Gov. Andrew Cuomo of New York calling it"impossible." That's because most countries are already financially strapped because of a loss of tax revenue after the coronavirus pandemic shuttered the economy.
Executive Orders can't replace legislative actions.
States can not pay 25 percent of unemployment expenses.
It is simply not possible.
-- Andrew Cuomo (@NYGovCuomo) August 9, 2020
"For many nations, the rest of the capital in the CRF will be enough to pay the state share of advantages," Goldman analysts wrote in a research note. "However, some states have already used most or, in the event of California, their CRF allocation, which might leave them to finance the advantage from other state resources"
States have another option, according to a Sunday memo by the Department of Labor viewed by CBS MoneyWatch. They can"count their current unemployment insurance (UI) per month benefit payments from state funds" toward their $100 donation, the memo stated.
"It appears if you are receiving state unemployment benefits which are at least $100, you should have the ability to get that $300 at the top, even if your state can not put up the extra $100," Stettner said.
In consequence, workers in those states will receive just an additional $300 on top of their regular unemployment benefits, instead of the anticipated $400, he noted.
Who will not qualify for the additional advantages?
Jobless employees who receive less than $100 per week in unemployment cover aren't eligible for the extra $400 in aid authorized by Mr. Trump.
That is attracting criticism from experts who say it'll hurt the employees who need the most help -- low-paid employees such as waiters and gig economy employees who might not qualify for greater unemployment payments.
"It's impacting those in the base of the income spectrum, or at the gig economy," Stettner said. "They have the smallest to get by -- and will not get anything."
Mr. Trump's efforts to partially restore the supplemental benefits, which died late last month, means that nations will have to set up new systems for administering the advantages, which could require considerable time to get up and running, based on unemployment specialists. Unemployed workers shouldn't count on the excess benefits landing in their bank account in the next few weeks.
Some countries also might not have the funds to provide 25 percent of their benefit, as suggested. That could observe the help sliced to $300 per week, half the additional weekly payment employees had been receiving before the end of July through the CARES Act.
To make sure, any additional financial aid would help the countless Americans who've lost their jobs and are struggling to find new job. However, the complexity of the unemployment system -- combined with the political and legal uncertainties around Mr. Trump's end-run after Congress failed to agree to a new stimulus package a week -- have opened a range of questions about the White House initiative.
"This is the tragedy -- workers are hoping to find this because the president promised it to them," said Michelle Evermore, senior policy analyst at the National Employment Law Project, an advocacy group. "It is likely to be a real challenge for states to say they could get this up and running"
States will likely have to install new strategies for administering the aid, as the federal part will stem from $44 billion in funds allocated for natural disaster relief. States can not use their current unemployment systems for benefits authorized out of Congress, NELP notes.
Here is what else you should know about Mr. Trump's move to jump-start the attempt to funnel extra unemployment aid to Americans:
When will I get the extra $400?
Do not expect to get the extra jobless benefit this month, said Andrew Stettner, senior fellow at The Century Foundation, a progressive think tank. Because states will need to construct a new system to manage the cash, they might not be able to disperse the funds until September, he explained.
"We're lucky if anyone gets this cash in August," Stettner said. "It's more likely to be in September at the earliest."
Already, some jobless workers are posting questions on social media about when they may get the extra help, pointing to Mr. Trump's memo stating it is going to start on August 1 for people who qualify. Rather, jobless Americans will most likely get back payments return to August 1 when the app starts up, Stettner said.
How long will the $400 payments continue?
Mr. Trump's plan would fund the excess unemployment benefits by tapping $44 billion from the nation's Disaster Relief Fund. That's enough for four or five weeks, according to Raymond James analyst Ed Mills.
What happens if my state can not provide funding?
This really is one of the biggest questions regarding Trump's directive, which says that the federal government will provide $300 in extra aid and the states will contribute an additional $100.
Many governors have already said the $100 per-person contribution is beyond reach, together with Gov. Andrew Cuomo of New York calling it"impossible." That's because most countries are already financially strapped because of a loss of tax revenue after the coronavirus pandemic shuttered the economy.
Executive Orders can't replace legislative actions.
States can not pay 25 percent of unemployment expenses.
It is simply not possible.
-- Andrew Cuomo (@NYGovCuomo) August 9, 2020
"For many nations, the rest of the capital in the CRF will be enough to pay the state share of advantages," Goldman analysts wrote in a research note. "However, some states have already used most or, in the event of California, their CRF allocation, which might leave them to finance the advantage from other state resources"
States have another option, according to a Sunday memo by the Department of Labor viewed by CBS MoneyWatch. They can"count their current unemployment insurance (UI) per month benefit payments from state funds" toward their $100 donation, the memo stated.
"It appears if you are receiving state unemployment benefits which are at least $100, you should have the ability to get that $300 at the top, even if your state can not put up the extra $100," Stettner said.
In consequence, workers in those states will receive just an additional $300 on top of their regular unemployment benefits, instead of the anticipated $400, he noted.
Who will not qualify for the additional advantages?
Jobless employees who receive less than $100 per week in unemployment cover aren't eligible for the extra $400 in aid authorized by Mr. Trump.
That is attracting criticism from experts who say it'll hurt the employees who need the most help -- low-paid employees such as waiters and gig economy employees who might not qualify for greater unemployment payments.
"It's impacting those in the base of the income spectrum, or at the gig economy," Stettner said. "They have the smallest to get by -- and will not get anything."