With major federal jobless aid programs slated to expire by year-end, the question is what could replace them as high unemployment continues to afflict the U.S. economy and millions of Americans struggle to make ends meet.
In Washington, D.C., two competing proposals have been introduced this week, although each offers markedly different levels of support for jobless workers. The first is a $908 billion bipartisan congressional plan that prioritizes aid for people who are out of work, businesses, and state and local governments. The second is a smaller Republican initiative that focuses on helping businesses stay afloat while limiting their legal exposure to coronavirus-related lawsuits.
The larger stimulus package appears to be gaining traction, with Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer saying the proposal should form the basis for any further negotiations. The plan also has received support from several Republican senators. Pelosi on Friday said she would like to attach new coronavirus relief legislation to a government funding omnibus bill that must pass within the next week to avoid a government shutdown.
Although the final contours of a stimulus measure remain under debate on Capitol Hill, many experts see a clear need for additional economic relief. Job growth slowed sharply last month as the coronavirus surged.
“We’re still in situation where just under 19 million people are claiming benefits for the main unemployment programs,” said Andrew Stettner, an expert on unemployment benefits at The Century Foundation, a progressive think tank. “Extreme numbers of people have been out of work for a long time and thus are at the end of their rope.”
Ideally, Stettner said, Congress would approve another six months’ worth of the core benefits provided by the Coronavirus Aid, Relief and Economic Security, or CARES, Act. That could provide a financial bridge for workers until vaccinations become widely available, at which point businesses like restaurants and hotels could again start rehiring.
The unemployment programs due to shut off on December 26 are the Pandemic Unemployment Assistance (PUA) program, which provides aid to self-employed and gig workers, and the Pandemic Emergency Unemployment Compensation (PEUC) program, which provides an additional 13 weeks of benefits beyond the typical 26 weeks that states provide unemployed workers.
Neither stimulus proposal would provide an additional six months of benefits for the two programs. But President-Elect Joe Biden and the new…
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