The enhanced unemployment in the new stimulus check bill will begin paying out as early as this week in some states, according to a report by Forbes. After months of waiting for more aid, many Americans are desperate for the extra $300 added to their unemployment check each week. Now that Congress has finally reached a compromise, some states are prepared to deploy the money quickly.
The states of Arizona, California, Connecticut, Minnesota, New York, Rhode Island and Texas all said that they will distribute the federal unemployment aid starting this week. Other states are not far behind, eager to boost financial aid to Americans who have been laid off or furloughed due to the coronavirus pandemic. This program replaces the $600 per week unemployment aid that Americans got from March to July, before Congress let it expire with no replacement. Still, some states are taking their time to make sure the money is distributed correctly.
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Some states’ labor offices told reporters they are awaiting further guidance from the U.S. government on how to implement this new unemployment program. Washington state, for example, is aiming to make the first payment on Jan. 15. Other states like Mississippi, North Carolina and Tennessee have not specified a timeline.
States are also moving quickly when it comes to the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs. They are meant to help self-employed Americans, freelancers and gig workers. South Carolina’s labor office says that it has already paid out $10 million to beneficiaries of these programs.
In all, the new stimulus bill provides $120 billion for unemployment aid — a considerable chunk of the $900 billion overall budget. However, critics are still complaining about the size of the checks and the eligibility rules. In a historic recession like this, many think the original $600 checks were more appropriate.
The $300 unemployment enhancement will last for 11 weeks under the current legislation. When the new Congress takes office, it will have the option of either extending these programs as they are, or passing a new stimulus bill altogether. They are expected to take the former path, under the guidance of President-elect Joe Biden.
Biden has said that he hopes to pass another large-scale stimulus bill when he takes office to help the American economy recover from the COVID-19 pandemic. Lawmakers on both sides have publicly agreed with him, but if the past six months are any indication, the negotiations will be an uphill battle. Inauguration Day for the president-elect and the new congress is on Wednesday, Jan. 20.
