Democrats are unlikely to extend their federal unemployment allowance after losing their job in two weeks.


Unemployment Insurance Weekly Benefit Stimulation Checks Recession Unemployment Coronavirus Pandemic

Carlos Ponce has participated in a protest in Miami Springs, Florida, calling on Senators to continue their unemployment benefits after July 31, 2020. Joe Ladle / Getty Images

  • The House Democrats have no current plans to extend the federal unemployment allowance, which ends in two weeks.

  • Household chairman John Yarmuth told insiders that another extension was not part of future spending negotiations.

  • Biden administration Recently mentioned state They can use the remaining stimulus dollars to expand their unemployment profits on their own.

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House Democrats are unlikely to include an extension of the federal unemployment allowance in their planned $ 3.5 trillion spending package, according to House Budget Chairman John Yarmuth.

“I’ve never been interested in extending [enhanced unemployment insurance]A Kentucky Democrat told insiders. “It wasn’t part of the debate.”

All pandemic aid programs for people experiencing unemployment will expire at the federal level in two weeks. This includes pandemic unemployment support for gig workers and freelancers, and another federal initiative to provide payments to those who make the most of state benefits. A recent analysis by the Leftist Century Foundation estimates that 7.5 million people will lose all unemployment assistance after the expiration date of September 6.

Yarmouth’s remarks serve as a frank assessment of the odds of UI extensions among House Democrats. Senate Democrats are also unlikely to pursue extensions due to resistance from moderates in their ranks.

West Virginia Senator Joe Manchin I told the insider earlier this month He did not support the extension of enhanced unemployment insurance.

“I’ve finished the expansion. The economy is back,” he said.Other moderates, including Senator Angus King in Maine Recently pointed out He hesitated to support it.

Democrats are using a difficult process called reconciliation to ensure the passage of a $ 3.5 trillion spending plan to avoid Republican opposition, but it is necessary for Democrats not to break the ranks.

Biden administration Recently mentioned state They can increase their unemployment allowance on their own with the remaining subsidies from the $ 1.9 trillion stimulus.

Some blame COVID-19’s unemployment allowance for sluggish employment in recent months, but a July analysis People didn’t get back to work right away Some states have reduced federal unemployment insurance early.

Economists say the risk of infection due to school closures and lack of childcare is one of the factors that hinders people’s ability to return to work.

..New research In August, we found that early termination of unemployment benefits would significantly reduce spending. The state-wide reduction in unemployment allowances in June fell by nearly $ 2 billion. Also, as federal benefits will be reduced from September, researchers predict that rollbacks could reduce spending by $ 8 billion from September to October.

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