Unemployment benefits from Trump's executive memo run out as stimulus deal fails to materialize
One of the few aid programs for unemployed Americans practically came to an end when the prospect of a new economic deal fading before the elections.
At least 46 states have paid out all of the benefits available under the Lost Wages Assistance (LWA) program, with the remainder only being paid for the weeks ending September 5 - when the program has effectively expired.
“The money has been gone for months. Some people get a check this week or last week, but it is responsible for overdue payments, ”Michele Evermore, senior policy analyst with the National Employment Law Project, told Yahoo Money. "The money that comes now only pays back long overdue debts."
At least 46 states have disbursed all funds available under the Lost Wages Assistance (LWA) program. (David Foster / Yahoo Finance)
September 5 was the last active payment day for the LWA program, which was created as part of a presidential memo dated August 8 to avoid deadlocked negotiations with Democrats over a stimulus package. However, the program only made funding available for six weeks, and Congress has still not reached an agreement on additional incentives that would likely include additional benefits for unemployed Americans.
"You are at the end of the rope"
Unemployed faced a cliff in late July when the $ 600 per week under the CARES program expired and a second when the $ 300 to 400 per week under the LWA program expired in most states. Currently, unemployed Americans only receive regular state unemployment benefits.
"I've tried to be as optimistic as possible in negotiations because these people need hope," said Evermore. "You're at the end of the rope."
Read more: How long does your unemployment benefit last?
Over 23 million unemployed Americans currently on unemployment insurance have found their benefits increased from around 130% of their pre-layoff wages to 50% now, after the additional $ 600 expired in July and the LWA program, according to analysis by Evercore ISI. have decreased.
While unemployed Americans were able to slump away some of the earlier benefits, they are now evaporating. According to a study by the JPMorgan Chase Institute, the unemployed more than doubled their cash savings between March and July, but they spent two-thirds of those savings in August alone.
According to a new study by the JPMorgan Chase Institute, the unemployed more than doubled their cash savings between March and July, but they spent two-thirds of those accumulated savings in August alone. (David Foster / Yahoo Finance)
"If this goes beyond the choice"
Three months into negotiations began, House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Mnuchin have come closer on the top line of a deal, but important disagreements persist. A potential bill would likely meet stiff opposition in the Senate, and even if passed, there may not be enough time to become law before the elections.
Read More: Here's What You Need To Know About Eligibility for Unemployment Benefit
The latest proposal from the Democrats is the revised HEROES bill worth $ 2.2 trillion, while the White House counter-proposal is worth "nearly $ 1.9 trillion," according to White House Chief of Staff Mark Meadows. The democratic proposal includes additional unemployment benefits of $ 600 through January. However, Republicans previously advocated a lower benefit of $ 300-400 per week.
U.S. House Speaker Nancy Pelosi, Democrat of California, holds her weekly press conference on Capitol Hill in Washington, DC on October 22, 2020. (Photo by Alex Edelman / AFP) (Photo by ALEX EDELMAN / AFP via Getty Images)
Pelosi was optimistic that despite the obstacles facing the election, a non-partisan economic law would be passed. She told reporters on Thursday, "We're here," but the two parties have not reached an agreement since Monday.
"Ten days after Secretary Mnuchin said on CNBC that he accepted our test plan, the administration is still refusing to do so," Pelosi said in a statement Monday.
The Senate and House of Representatives have both adjourned until after the election, but the legislature can be removed in the event of a stimulus vote. Even if they can reach an agreement, it may already be too late for a bill to go through all government circles before November 3rd.
"If this goes beyond the elections, who knows what will happen?" Said Evermore. "It can be that the administration loses and decides:" Do you know what, why do something? "
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Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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