Proposed Extra Unemployment Benefit may not Get to Everyone, as Uncertainties surround its actual amount of $300 or $400.

The recent executive order from President Donald Trump has come with a lot of mixed feelings, the order revealed an extra $400 weekly unemployment benefit to help cushion the effect of the current pandemic.

There have been uncertainties concerning the executive order, knowing that it has not yet been validated and still going through a process. There have also been speculations regarding the unemployment benefit which is to be given, as it appears that not everyone would get it.

The unemployment benefit could also amount to $300, and not $400 which was stated.

This executive order for extra unemployment money came with some others which were issued on Saturday as negotiations were made for the next round of the corona relief.

The executive order from President Donald Trump to pay eligible unemployment recipients came with an additional clause, which involved states administering the funds and also making provision for $100.

Governors have expressed their concern, as they questioned if President Trump has a constitutional authority to issue such an order, with questions also raised over the administrative burdens and costs of the states.

With all these deliberations, lawmakers are seeking ways to help households that have been hit by the current pandemic, as well as businesses, local and state governments. There are also a lot of uncertainties concerning the economy, with the unemployment rate already above 10%.

The federal legislation which was designed to help Americans and their businesses have seen over 1.6 million receive and extra $600 every week, but such benefit ended in July and payments have not started again as Congress has been unable to work out an agreement.

Various states are already suffering from a major hit in the pandemic, and there have deliberations as to what measure would best bail out people and their businesses.

As there are already questions if the executive order by the president would stand legally, and if it can be implemented. $100 would have to be collected weekly by the recipients in other unemployment insurance so they can qualify for this new phase.

Michele Evermore who is a senior policy analyst for National Employment Law Project and well vast in unemployment benefits said the $100 which would be collected in other unemployment insurance would eliminate eligibility for individuals who receive little in the way of benefits unless states could boost what they pay in standard unemployment so that all recipients receive amounts above that $100 weekly threshold.

With the new executive order given by President Trump, states were requested to make available $100 from the $400, this would leave them with two options.

Either they count the $100 they pay in weekly benefits to meet the requirement, which would see the boost amount to $300 and not $400, or they could make available their part of the unemployment benefit, from funding which they already have access to, because of The CARES Act, which was passed in late March, creating a $150 billion coronavirus relief fund.

From the federal government’s part which is to provide $300 weekly, President Trump would make use of money from the $70 billion Disaster Relief Fund, not a total sum of it but $44 billion.

This fund which is usually deployed at times of disasters, such as weather and the rest would be administered by the Federal Emergency Management Agency, otherwise known as FEMA. 

According to the executive order, the eligibility for the extra benefit would be retroactive to the week which ended August 1.

This new increase in unemployment benefit would run up until December 6, or when the funding runs out. They both depend on whichever one occurs first according to the order which was given.

Michele Evermore also said that the boost from the federal government would not be automatic, and various states would need to request for the assistance to be given to them. Adding that the states will also need to have a system in place to have the money delivered and this isn’t a simple task to carry out.

As the government seems to be seeking ways to help its citizens, Senator Ted Cruz has always said that “Congress should be focused on helping Americans safely return to work and restoring hope and optimism across the country – not keeping the economy shutdown by paying people more to stay at home and not work”.