States Start Receiving Enhanced Federal Unemployment Benefits After Trump Executive Action

What’s the story?

• On August 8th, President Donald Trump took a series of executive actions on coronavirus relief that included a partial extension of the $600 enhanced federal unemployment benefit that was established by the CARES Act and expired on July 31st.
• Trump’s action provides a federal benefit enhancement of up to $300 per week for people receiving at least $100 in state unemployment benefits, pandemic unemployment benefits, short-time compensation, or other designated programs. Up to $44 billion from the FEMA Disaster Relief Fund could go to those ends until the DRF balance reaches $25 billion or until December 6th (whichever occurs first).
• Many states have already acted to arrange for the federally enhanced unemployment benefit. A Forbes report notes that as of August 25th, all but 12 states have either applied or intend to apply for the $300 federal unemployment enhancement.
• Two states, Arizona and Texas, have already begun paying the additional benefit and Missouri is expected to join them before the end of the month. So far, at least 12 more states are expected to begin paying the additional benefit in September.
• Three states are planning to offer an even more generous unemployment benefit by adding an additional $100 from state sources to go with the initial state benefit and the $300 per week federal enhancement ― Kentucky, Montana, and West Virginia.
• The states that as of August 25th haven’t made a decision about applying include Florida, Hawaii, Illinois, Kansas, Minnesota, Nebraska, Nevada, New Jersey, North Dakota, South Carolina, and Wisconsin. They have until September 10th to apply.
• Only one state thus far has indicated it will not seek the federally enhanced unemployment benefit, as South Dakota Governor Kristi Noem (R) explained: 

“My administration is very grateful for the additional flexibility that this effort would have provided, but South Dakota is in the fortunate position of not needing to accept it. South Dakota’s economy, having never been shut down, has recovered nearly 80% of our job losses. South Dakota is the only state in the nation that didn’t have extended benefits kick in because our insured unemployment rate has been the lowest in the nation.”

— Eric Revell

(Photo Credit: iStock.com / Cylonphoto)