$300 weekly unemployment checks: On the chopping block or here to stay?

By Dec. 31, federal unemployment insurance will lapse, leaving tens of millions of Americans who are out of work as a result of the COVID-19 pandemic without an income if their state hasn’t stepped in to close the breach. A $908 billion bipartisan relief proposal is in the works and would deliver a $300 per week federal unemployment bonus for four months. That is, if the bill passes as is.

The package faces several formidable challenges, including a proposal from the White House that would send $600 stimulus checks apiece to qualifying adults and children in exchange for the weekly $300 benefit.

“If you’re send a stimulus check of $600 or whatever it may be — it was $1,200 before — you’re sending it to people who still have a paycheck and still have a job,” Sen. Joe Manchin, a Democratic member of the bipartisan group working on the $908 billion relief bill, said on Fox News Sunday. “If you send a check to an unemployment person, you are sending to a person who has no lifeline — it’s done at the end of this month, they’ve got nothing.”

In addition to the challenge thrown down by the White House offer, the issue of a second stimulus check for $1,200 could threaten topple talks. So could two contentious programs that are embraced by Democrats and Republicans but rejected by their political rivals: providing aid for local and state governments and providing short-term liability protections from coronavirus-related lawsuits, respectively.

Will focus remain on the unemployment money for a smaller population or the direct payment for the majority of Americans?

“A dollar spent on boosting unemployment benefits is going to be better stimulus than a dollar spent on checks,” said Marc Goldwein, the policy lead at the Committee for a Responsible Federal Budget, according to The Hill.

Here’s where the situation with weekly federal unemployment insurance stands now. This story is updated frequently with new information.

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

What happens if enhanced unemployment benefits expire?

According to a Dec. 3 report by the New York Times, without a new stimulus bill to extend the programs established by the CARES Act:

• 7 million gig workers and contractors will lose benefits 
• 5 million people who lost their jobs will run out of unemployment checks 
• Several million Americans will face evictions 
• Approximately 21 million people will need to start making student loan payments 
• 125,000 companies will lose tax incentives to not lay off workers
• $150 billion of aid to state and local government will expire 

With Congress in a lame-duck session until President-elect Joe Biden takes office on Jan. 20, President Donald Trump would need to sign off on any relief package that comes through the House and Senate. Right now, that’s the only way to extend the enhanced unemployment benefits before they expire on Dec. 31. 

Which other programs end without another stimulus package?

Unemployed workers received a bonus of $600 a week, along with an extended period to collect benefits as part of the $2.2 trillion CARES Act passed in March with support from Democrats and Republicans. When the bonus expired in July, Trump signed an executive memo in favor of continuing a reduced amount of the extra weekly funds, on top of the typical unemployment benefits. 

Those funds are known as Lost Wage Assistance, or LWA, and the intent was for the aid to last for six weeks, providing an extra $300 a week to unemployed workers (plus $100 from states) while Congress continued negotiations over a new economic relief package. States have already depleted their resources. The proposed and revised Heroes Act from Oct. 1 would bump the weekly bonus back up to the original $600 for four months. 

The CARES Act established multiple programs, with an expiration date of Dec. 31. In addition to the larger checks described above, the rescue bill also extended unemployment benefits for new claimants to 39 weeks instead of the typical 26 weeks established by the states. Those extra weeks will disappear except in states that already established a longer period of time through 2021. 

Another program set to expire on Dec. 31 is the Pandemic Unemployment Assistance program. Self-employed workers contractors and gig workers normally don’t receive unemployment benefits, but PUA allows them to receive weekly funds similar to other unemployed workers.

What happened to the $300 bonus checks from summer?

Trump’s executive memo signed on Aug. 8 reinstated a bonus weekly check of $300 referred to as Lost Wage Assistance (LWA) funded by the federal government through FEMA. The order also called for an additional $100 provided by the states, to make a total of $400 in enhanced unemployment pay, though that’s since been made optional.

States began sending the $300 checks in mid-August, with some sending them out over six weeks while others provided lump sums to equate the $1,800 total. As of December, all states have exhausted their allotted LWA funding. 

Why were unemployment benefits enhanced anyway?

Congress passed the $2.2 trillion CARES Act in March to help Americans and US businesses after cities began locking down due to the coronavirus pandemic. Included in the package was additional unemployment aid for people who lost their jobs because of COVID-19. 

Since shelter-in-place rules were put in place, tens of millions of Americans have lost their jobs and have received the extra federal unemployment aid. With states providing between $235 and $1,220 per week in assistance, the additional $600 per week has been a major component of many people’s financial survival. 

Who qualified for enhanced unemployment benefits? 

If you’ve been laid off or furloughed, you’re eligible to apply for unemployment benefits from the state where you live. Once the state approves your claim, you’re eligible to receive whatever state benefits you’re entitled to. Because states cover 30% to 50% of a person’s wages — some states provide more, while others offer less — the extra $600 from the federal government was originally added on to help fill the gap. 

How did the CARES Act support people who were laid off or furloughed? 

Each state has its own criteria for who is eligible to receive unemployment and what those benefits entail. This includes how much money you’re eligible to receive, which is usually based on your income, and how long you’re eligible to receive it, which is usually based on how long you held your most recent job. The CARES Act provided a booster fund — adding up to $600 extra per week — while also extending states’ unemployment benefits to a maximum of 39 weeks instead of the typical 26 weeks. 

Who wasn’t eligible for the extra unemployment money?

There will be some people receiving unemployment payments who won’t be able to take advantage of additional funding. The US Department of Labor on Aug. 11 sent out guidance about the eligibility requirements for the LWA. Claimants would have to be eligible for a minimum $100 from a state’s unemployment benefits program to qualify for the additional $300 in federal funds. This would disqualify 1 million people, according to the New York Times. 

How are unemployment benefits calculated?

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

How can I find out if I qualify for unemployment insurance?

Eligibility criteria vary from state to state, but the general rule is that you should apply if you’ve lost your job or been furloughed through no fault of your own. This would include a job lost directly or indirectly because of the pandemic. 

How are different states handling the unemployment benefits?

Again, the benefit duration and amount vary. Most states provide up to 26 weeks of funding, though others, such as Georgia, limited benefits to 12 weeks. On the other hand, Delaware extended benefits for up to 30 weeks. The weekly benefit amount depends on an applicant’s gross income when they were employed and ranges between $300 and $600, with some exceptions. Mississippi had paid up to $235, while Massachusetts’ maximum has been $1,220.

Where can I get more details about my state’s policy?

Each state’s labor office provides information about its particular unemployment benefits.

How did the CARES Act help people who are self-employed? 

The CARES Act also created the Pandemic Unemployment Assistance program, which provides benefits to individuals who would not normally be eligible for unemployment benefits from the states, such as gig workers, freelancers, independent contractors and small business owners whose income has been affected by the pandemic. Under the CARES Act, PUA funding will be available until Dec. 31.