$600 Unemployment Benefit Has Been Keeping Desperate Americans Afloat, But It’s Ending Soon
Some lawmakers are concerned that people are making more money on unemployment than they did in their pre-pandemic jobs, and have been hesitant to support extending the program. Now, Republicans are starting to coalesce around Sen. Rob Portman’s (R-Ohio) solution: a $450-per-week return-to-work bonus. In other economic news: transparency and the bailout, jobless claims and financial aid for immigrants.
Los Angeles Times:
The $600 Unemployment Benefit Ends July 31. What's Next?
For many out-of-work Americans, an extra $600 a week in federal unemployment insurance is providing some stability during an otherwise shaky economic period. But how long might that benefit last? When the coronavirus pandemic first flared up in mid-March, causing a domino effect of immediate event cancellations and business closures, spending vanished almost overnight. In a swift move to flush cash through the economy, the federal government approved the $2-trillion Coronavirus Aid, Relief, and Economic Security Act. (Pinho, 6/17)
The New York Times:
Lack Of Transparency Could Hinder Virus Bailout, Oversight Board Warns
The new federal oversight board responsible for tracking how $2.4 trillion in bailout money is being spent warned on Wednesday that a lack of transparency and feeble reporting requirements could hamper its efforts to ensure that the funds are being deployed properly. In its inaugural report, the Pandemic Response Accountability Committee, a panel of inspectors general, laid out an array of obstacles facing the country’s largest-ever economic relief effort. The concerns come as the White House has taken steps to curb the power of inspectors general throughout the federal government and as Treasury refuses to disclose where small business loan money is going. (Rappeport, 6/17)
Politico:
Democrats Accuse SBA Of Illegally Blocking Oversight Of Lending Program
The Small Business Administration is illegally stonewalling Congress' watchdog agency from reviewing its handling of a massive coronavirus relief program, House Democrats alleged Wednesday. In a letter to SBA administrator Jovita Carranza, five Democratic committee and subcommittee chairs said the Government Accountability Office — Congress' independent oversight arm — has been rebuffed in its attempts to interview top SBA officials and access key documents about the implementation of the small business program, known as the Paycheck Protection Program. (Cheney and Warmbrodt, 6/17)
The Washington Post:
1.5 Million Workers Filed For Unemployment Insurance Last Week
Another 1.5 million workers filed for unemployment insurance for the first time last week, as the coronavirus pandemic continued to weigh on the economy. The numbers remained at historic levels: the previous record before the coronavirus was 695,000 in 1982. Since the coronavirus began earlier this year, there have been 13 straight weeks where more than a million people have filed for unemployment for the first time. (Rosenberg, 6/18)
Politico:
1.5M New Unemployment Claims Filed Last Week
On top of that, more than 760,000 people applied for benefits under the new temporary Pandemic Unemployment Assistance program created for those ineligible for traditional unemployment benefits. While economists caution that there is likely overlap, added together, the number of new claims filed last week could be higher than 2.1 million. (Rainey, 6/18)
Reuters:
U.S. Weekly Jobless Claims Remain High, Second Wave Of Layoffs Blamed
A second wave of layoffs amid weak demand and fractured supply chains is likely keeping new U.S. applications for unemployment benefits elevated, supporting views that the economy faces a long and difficult recovery from the COVID-19 recession. (Mutikani, 6/18)
The Wall Street Journal:
U.S. Initial Jobless Claims Edge Down To 1.5 Million In Latest Week
A historically high number of workers continue to seek unemployment benefits each week, but applications have decreased substantially since an early spring peak amid signs the labor market and broader economy are recovering from the coronavirus-induced shock. New jobless claims have eased as states allowed businesses to reopen and employers recalled workers. Others signs of economic growth have emerged, including a May rebound in retail spending. But with the economy having slipped into recession this year, many firms have remained cautious about rehiring, leaving millions of people out of work since the pandemic hit. (Morath, 6/18)
San Francisco Chronicle:
Federal Judge In Oakland Orders Financial Aid Restored To Undocumented Immigrant Students
A federal judge on Wednesday ordered U.S. Education Secretary Betsy DeVos to restore financial aid included in the latest coronavirus relief legislation to hundreds of thousands of community college students in California whom she disqualified because they are not U.S. citizens. The $2.2 trillion Coronavirus Aid, Relief and Economic Security Act, known as the Cares Act, signed by President Trump on March 27, included $14 billion in federal funding for college students suffering economic hardships because of the pandemic. DeVos’ Education Department announced rules in late April denying aid to students, mostly noncitizens, who were ineligible for other types of federal funding. (Egelko, 6/17)
