Extra Unemployment Expiring at the End of July

As the COVID-19 pandemic began wreaking havoc on American soil and large portions of the country began shutting down in March, it was up to Congress to do what was necessary to keep the economy going and take care of the tens of millions of Americans that were suddenly out of work. This largely came in the form of the $3 trillion CARES Act, and while the bill provided bailout dollars for hard hit industries and protection loans for small businesses, it also included enhanced unemployment benefits for out-of-work Americans. Perhaps most significantly, these unemployment benefits provided workers unemployed due to the COVID-19 pandemic with an extra $600 per week through July.

Now, in less than two months that extra $600 is going to expire – and lawmakers have already publicly said that they don’t plan to extend them. At least as things stand now.

What Comes Next?

Even if these enhanced unemployment benefits are not extended as the public gets ready to transition back to work after seemingly absorbing the blow of the first coronavirus wave, the good news is that the CARES Act also provided numerous other benefits for the unemployed for those who aren’t able to return by July 31. These additional benefits include:

  • An extra 13 weeks of unemployment healthcare benefits beyond the typical 26 weeks. (Timelines may vary based on state.)
  • Gig, part-time and contract workers will also see their Pandemic Unemployment Assistance benefits extended.
  • Another stimulus bill: While not related to the CARES Act, it’s likely that another stimulus bill will be passed. Senate Majority Leader Mitch McConnell has said that Congress will likely take it up sometime in mid to late June when the extent and foreseeable future of the pandemic is more clear.

A Good or Bad Idea?

While it’s unlikely that the extra $600 per week for unemployed workers will be extended, there are arguments supporting this reasoning and against it. Those who are for discontinuing it argue that it discourages Americans from returning to work since they’re earning a comparable living claiming unemployment benefits. There’s also the belief that by August 1, most of the American economy will have fully re-phased as the initial wave of the virus subsides, and testing and contract tracing improve to isolate new cases quickly.

However, those who are against it ending July 31 believe that tens of millions of Americans will still be out of work come August 1, and eliminating this benefit would be disastrous for the economic recovery based on the reduced spending power of these Americans.

This Can All Change

While August 1 seems like it’s right around the corner, it’s still about two months away – and a lot can happen over the course of just two months, especially when you consider that medical researchers globally are working toward treatments and vaccines for the coronavirus. It’s likely that Congress will wait until the big picture is more clear heading into fall before deciding what to do about some of the enhanced benefits that are currently offered.


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