Emergency Government Aid Cushions Blow For Some, But Crisis Will Far Outlast That Support
Most Americans have only received that one $1,200 check. And for those laid off, the extra $600 a week in unemployment benefits is set to dry up in the summer. The economic devastation from the pandemic, though, will likely continue on for months if not years, experts say. Meanwhile, lawmakers in New York consider legislation that would allow New York City to borrow $7 billion to pay for the pandemic.
The New York Times:
Coronavirus Aid: Millions Can See Its End, And They’re Scared
For millions of Americans left out of work by the coronavirus pandemic, government assistance has been a lifeline preventing a plunge into poverty, hunger and financial ruin. This summer, that lifeline could snap. The $1,200 checks sent to most households are long gone, at least for those who needed them most, with little imminent prospect for a second round. The lending program that helped millions of small businesses keep workers on the payroll will wind down if Congress does not extend it. (Casselman, 5/28)
The Associated Press:
Debate Over $600 In Jobless Aid To Intensify As Claims Rise
A debate in Congress over whether to extend $600 a week in federally provided benefits to the unemployed looks sure to intensify with the number of people receiving the aid now topping 30 million — one in five workers. The money, included in a government relief package enacted in March, is set to expire July 31. Yet with the unemployment rate widely expected to still be in the mid-teens by then, members of both parties will face pressure to compromise on some form of renewed benefits for the jobless. (Rugaber, 5/29)
The Washington Post:
The Latest Government Stimulus Snafu: Debit Cards That Look Like Junk Mail
The IRS has to explain, yet again, a glitch in issuing stimulus payments. To help speed the delivery of up to $1,200 in economic impact payments to individuals made available under the $2 trillion Coronavirus Aid, Relief, and Economic Security (Cares) Act, the Treasury Department last week began mailing prepaid debit cards to 4 million Americans. (Singletary, 5/28)
The New York Times:
Virus Forces N.Y.C. To Consider Tactic That Nearly Led To Ruin In ’75
The coronavirus pandemic has plunged New York City into the most dire fiscal crisis it has faced in generations. More than 900,000 people have lost their jobs since February, and thousands of businesses have closed. The streets remain empty of workers and visitors: Nearly 117,000 people filed new unemployment claims in the second week of May, a staggering 2,206 percent increase from the previous year. Tourism, which generates roughly $70 billion a year in economic activity, has disappeared. (Ferre-Sadurni, Mays and McKinley, 5/29)
The Wall Street Journal:
New York City Seeks Power To Borrow Up To $7 Billion For Coronavirus Expenses
The mayor noted that the Legislature passed a measure in the aftermath of the Sept. 11, 2001, attacks that gave then-Mayor Rudy Giuliani the power to borrow money so that the city could continue to provide basic services. “There was no question about the importance of supporting New York City for the whole state and for all the people of this city,” Mr. de Blasio said. “The city took that borrowing authority, then used it wisely, allowing it to come back strong. That’s what I think can and should happen again now.” (De Avila and Honan, 5/28)
NPR:
Nevada Unemployment Soars To Historic High
Amid record-breaking unemployment numbers, Nevada stands out. The jobs crisis hit the state early and dug in deep. Unemployment there has soared to more than 28% — the highest in the nation and the highest for any state since 1976, when the U.S. Bureau of Labor Statistics began tracking this data. The accommodation and food service industry has been hit the hardest, says David Schmidt, chief economist for the Nevada Department of Employment, Training and Rehabilitation, with a nearly 41% year-on-year loss of jobs at hotels, casinos and restaurants and other tourism-related businesses. (Kelly and Morell, 5/28)
The Wall Street Journal:
Easing Unemployment Claims Show Slower Pace Of Coronavirus-Related Layoffs
The number of workers receiving unemployment benefits fell for the first time since February and new weekly claims continued to ease, offering evidence that layoffs related to the coronavirus pandemic are slowing. Initial claims for unemployment benefits declined to a seasonally adjusted 2.1 million last week from 2.4 million the prior week, the Labor Department said. The level of claims is still 10 times prepandemic levels but has fallen for eight straight weeks. (Morath, 5/28)
Boston Globe:
Layoffs Are Slowing, But ‘It’s Going To Take Years To Get These Jobs Back’
Ten weeks into the worst economic upheaval since the 1930s, the dust is settling but the path forward remains precarious: Even as people start returning to work, the loss of some 46 million jobs will leave lasting scars on the economy in Massachusetts and across the country. (Edelman, 5/28)
CIDRAP:
100,000 Deaths, 40 Million Jobless: US Confronts Grim COVID-19 Realities
As America's COVID-19 death toll crossed the 100,000 mark yesterday, another 2 million Americans filed for unemployment in the 10th week since the novel coronavirus has upended life across the country. According to Reuters, a record 40.767 million people filed joblessness claims since Mar 21, when most states enacted stay-at-home mandates that shuttered non-essential businesses. (Soucheray, 5/28)
Stat:
Despite Economic Crisis, Prominent Health Tech Startups Draw Big Funding
It was expected to be a last-minute salvo: As much of the world braced for a probable pandemic-era recession, some health tech startups nailed significant funding in the first quarter of 2020. Analysts eyed the data cautiously, warning that the trend was likely short-lived. But as March rolled into April, and then seeped like molasses into May, the money kept flowing. Just this month, three health tech companies raised more than $100 million each. (Brodwin, 5/29)
Boston Globe:
As The Supreme Court Weighs Their Fate, Thousands Of DACA Recipients Have Become Their Families’ Sole Providers Because Of Coronavirus
Since November, [Luz] Chavez has been waiting for the Supreme Court to decide the fate of the initiative and thus her own, a ruling that could come anytime in June. But nothing could have prepared her for this second crisis, which has raised the stakes even higher on that decision because now her family is dependent more than ever before on the money she brings into the household. (Ulloa, 5/27)
