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The Department of Labor pointed out that if they wanted to, states could issue one-time or periodic aid payments to workers who are currently unemployed, published Insider Business.
On Thursday, the site got guidance from the Labor Department on how states could renew federal unemployment assistance that will expire for millions of Americans in a few days.
Even with the rise in Delta infections and the instability it can represent for economic recovery, Congress and the Biden administration will allow federal unemployment benefits to expire. The Century Foundation estimates that 7.5 million Americans would lose all their benefits and the People’s Policy Project estimates that 20 million workers would suffer sharp cuts on your income.
President Biden a few days ago paved the way for states to extend unemployment assistance on their own using money left over from the March stimulus bill, but it doesn’t look like this is going to happen.
For Ed Lazere, a senior fellow at the left-leaning Center for Budget and Policy Priorities, any relief from states would be limited, as Most of the federal aid money was designated for schools and colleges to be able to educate virtually, alleviate homelessness or strengthen mental health resources.
On the other hand, 26 states, mostly Republicans, ended benefit programs long before September 6.
Relief it would depend on how great the financial support the states have, but Covid-19 cases continue to affect and hospitalizations caused by the Delta variant accumulate, mainly in the south of the country.
However, there is at least one example of states that allocate those resources to the issuance of stimulus checks.
In California millions are ready to receive direct payments subsidized by the American Rescue Plan. The state enacted a $ 100 billion recovery package, the surplus of which is “driven by a resurgent economy, increased state revenue, and additional federal recovery funds.”
The state notes that about two-thirds of Californians qualify for a $ 600 stimulus check, and families with eligible children would receive an additional $ 500.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.