- The additional UI benefit of $ 600 per week expires July 31 and Congress has yet to pass a replacement.
- Nearly 30 million Americans still receive unemployment benefits, according to the most recent figures from the Department of Labor.
- More than 5 million Californians alone continued to receive benefits during the week ending July 11.
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Millions of Americans are on the verge of losing a crucial lifeline with the expiration of extended unemployment benefits.
In response to the novel coronavirus pandemic and the resulting recession, Congress included a $ 600-per-week UI supplement as part of the CARES Act stimulus package in March.
This strengthened unemployment safety net expires on July 31, and Congress has yet to pass an extension or replacement. Republicans in Congress had proposed a partial extension of an extra $ 200 per week, which failed in the Senate, as had a Democratic bill extending full benefits by $ 600 per week.
A Bank of America analysis noted that the forfeiture of benefits, combined with the nearly 30 million Americans still laid off and on unemployment insurance, could lead to a massive collapse in overall income. A reduction from $ 600 to $ 200 per week would equate to a loss in weekly national income of about $ 12 billion and ending unemployment supplements entirely would result in a $ 18 billion drop in weekly income, according to the bank.
A study by liberal think tank The Century Foundation calculated the effect of reducing additional benefits from $ 600 to $ 200 per week in each state, based on changes in average payments under the replacement law. potential. Some states could see weekly benefits for the unemployed cut by about half.
As the increased benefits expired, about 28 million Americans in all 50 states and DC were still receiving unemployment benefits as of July 11, according to the latest unadjusted weekly figures from the Department of Labor released Thursday. This map shows the combined totals from this report for residents receiving traditional unemployment insurance and those receiving emergency pandemic benefits: