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$ 400 Weekly Unemployment Benefit: When Would Trump’s New Executive Action Start, And Is It Legal?



Unemployment benefit

More unemployment benefits could come for those who need it.

Sarah Tew / CNET

The CARES Act A weekly unemployment benefit of $ 600 was passed in March and expired on July 31. With no agreement reached between Republicans and Democrats on another stimulus package, President Donald Trump signed a memorandum on Saturday to restart the additional weekly funding, but instead $ 400 of $ 600.

“I am taking action to provide an additional or additional $ 400 per week of expanded benefits,” Trump said during a press conference at his Bedminster, New Jersey golf club. “The states are being asked to cover 25% of the costs with existing funds, for example with tens of billions of dollars that are available to them through the EU Coronavirus Relief fund. Under this plan, states can offer greater benefits if they choose, and the federal government pays 75% of the cost. “

According to the Executive Memorandum, the amount would start at $ 400 for the week ending August 1st and run through December 27th.

When asked at a press conference at the White House on Monday when unemployment benefit recipients would receive the $ 400, press secretary Kayleigh McEnany said, “We hope we can see it quickly and soon.” She says the speed at which funds get to those eligible depends on the states, since it is the states that have to throw in $ 100.

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

Along with the return of the increased unemployment benefit, Trump also signed three more executive actions, for payroll tax leave, federal student loan support and eviction protection. As with $ 400 unemployment benefits, there are questions about the legality of these orders.

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

“The president’s meager announcements today show that President Trump still does not understand the severity or urgency of the health and economic crises that working families face,” the two lawmakers said. “For example, the president’s announcement not only does not extend the eviction moratorium, it does not provide any assistance with paying rent, which only gives desperate families the opportunity to see their mountain of debt higher. Instead of passing a bill, it is now President Trump . ” Reduction in unemployment benefits for families and further postponements of states in budget crises, forcing them to make devastating cuts in services for life and death. “

The $ 600 weekly benefit that is part of the Federal Pandemic Unemployment Compensation program was a popular feature of the first coronavirus relief act that expanded state unemployment benefits to include those affected by the COVID-19 pandemic to help. With the HEALS Act (which stands for health, economic aid, liability protection and schools) officially proposed, Democrats and Republicans are working on a political stalemate.

Update: The current political context and outlook

Before President Trump signed the executive memorandum to resume the unemployment benefit, Democrats and Republicans could not reach an agreement on the next stimulus package. The negotiations fell apart last Friday after a “disappointing” meeting, as described by Schumer after a report by CNBC

Continue reading: Coronavirus unemployment: who is insured, how to apply and how much does it pay?

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

Since the president’s signing, the democratic leadership has spoken about whether the executive measures taken were constitutional, but they have yet to explain whether a lawsuit should be filed to block the execution of the orders.

“My constitutional advisers tell me that they (executive measures) are absurdly unconstitutional,” Pelosi told CNN on Sunday.

When asked if the negotiations would continue, Pelosi hopes they will.

California Governor Gavin Newsom said his state did not have the funds to fund 25% of the $ 400 weekly bonus, according to a report in the Los Angeles Times. Newsom said the amount it will need to cover the state stake would be $ 700 million.

What efforts are being made to increase unemployment benefits?

Congressional Democrats continued to push for unemployment benefits to be expanded. The Heroes Act, passed by the House of Representatives in May but not approved by the Senate, would have extended the FPUC to January 31, 2021. It would also have paved the way for a second stimulus payment.

The Worker Relief and Security Act proposed by Democratic Sens. Michael Bennet and Jack Reed and Rep. Don Beyer would extend unemployment benefits until Trump declares the state of emergency for COVID-19 over. At this point, the benefits would continue for 30 days and then come to an end. Those who are still unemployed would continue to receive weekly funding, but the amount would be reduced over the course of 13 weeks depending on the unemployment rate in each state.

Both proposals were rejected by Republicans, including McConnell. GOP leaders are facing problems with increased unemployment and say it is discouraging workers from returning to work. Senator Lindsey Graham said in April that re-approval of unemployment benefits would “pass over our bodies”. McConnell said July 6 that the next auxiliary bill could include one second stimulus test for those earning $ 40,000 a year or less.

Mnuchin told Bloomberg on June 23 that there were discussions for another stimulus package. However, he said it would focus on the companies hardest hit by the pandemic.

On July 1, the Senate Democrats tabled a bill extending unemployment benefits until March. The money made available would be tied to the state’s unemployment rate. If a state’s average unemployment rate falls below 11% after three months, the amount of aid is reduced by $ 100 until the average falls below 6%.

What is the HEALS Act?

The White House and Senate Republicans have now agreed on the terms of an aid package. The proposal called HEALS Act , was introduced by McConnell on July 27th. The $ 1 trillion package deals with several programs created or modified by the CARES Act, such as: B. Unemployment Insurance, the Paycheck Protection Program, and Economic Income Payments.

Not all details were provided immediately, but the GOP has proposed cutting the increased unemployment benefit from $ 600 per week to $ 200. Then, in September, the benefit would be adjusted and combined with state unemployment offers to equal 70% of a worker’s wages.

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

What is the CARES Act?

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

Since the shelter-in-place rules were introduced, tens of millions of Americans have received additional federal unemployment benefits. With states providing assistance between $ 235 and $ 1,220 per week, the additional $ 600 per week has been an integral part of many people’s financial lifeline.

Who was entitled to increased unemployment?

If you have been made redundant or on leave, You are entitled to unemployment benefits in the state in which you live. Once the state approves your entitlement, you will be entitled to the state benefits to which you are entitled. With states covering 30% to 50% of a person’s wages – some states offer more, some less – the federal government added the additional $ 600 to fill the gap.

How does the CARES law help people who have been made redundant or on leave?

Each state has its own criteria for who is entitled to unemployment – and what those benefits entail. This includes how much money you can get, which is usually based on your income, and how long you are entitled to it, which usually depends on how long you were in your last job. The CARES Act provided for a refresh fund of $ 600 per week to extend state unemployment benefits to a maximum of 39 weeks instead of the typical 26 weeks.

How is unemployment benefit calculated?

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

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

Eligibility criteria vary from state to state. However, the general rule is that you should apply if you have lost your job or taken a vacation through no fault of your own. This would include a job that is being lost, directly or indirectly, as a result of the current pandemic.

How do different states deal with it?

Here, too, the duration and amount of the benefit vary. Most states provide funding for up to 26 weeks, while others like Georgia limit benefits to 12 weeks. Delaware, on the other hand, offers benefits for up to 30 weeks. The weekly benefit amount depends on an applicant’s gross income when they were employed and ranges from $ 300 to $ 600 with a few exceptions. Mississippi pays up to $ 235 while the maximum in Massachusetts is $ 1,220.

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

The employment office in each state can provide more information on their respective unemployment benefits.

How does the CARES law help the self-employed?

The CARES Act also created the Unemployment Pandemic Assistance Program, which provides benefits to individuals who are normally not eligible for US unemployment benefits, such as gig workers, freelancers, independent contractors and small business owners whose incomes are from the pandemic is affected. According to the CARES Act, PUA funds are available until December 31, 2020.




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