Popular unemployment programs could end abruptly on Dec. 31. Here’s why
By Dec. 31, millions of Californians could see their weekly unemployment benefits disappear, unless Congress and President Trump keeps them going.
But so far, efforts to keep those payments going are getting nowhere. That could be devastating for California, where the state’s 11% unemployment rate in September was the nation’s third largest, behind only tourism-dependent Hawaii and Nevada.
“I’m terrified I’m going to lose my home,” said Bethsaida Ruiz, 63 of Oakland who has been relying on unemployment benefits for gig workers that are set to expire at the end of the year.
Here are what benefits could run out, and where Washington is when it comes to keeping them going:
What benefits could I lose by Dec. 31?
- Pandemic Unemployment Assistance. Business owners, independent contractors and self-employed workers have all been receiving unemployment benefits this year, ranging from $167 to $450 a week. Enacted in March, the program is designed to help workers in fields that traditionally don’t qualify for regular unemployment insurance benefits. As of Oct. 24, California processed 3.7 million claims for the benefits.
- Pandemic Emergency Unemployment Compensation. People who exhausted their up to 26 weeks of regular state unemployment benefits, are eligible for another 13 weeks of payments under the program. About 1.9 million such claims have been processed for Californians as of Oct. 24. The program will expire at the end of the year, regardless of whether you have taken advantage of the full 13 weeks of payments.
One program that will remain: FED-ED extension benefits for those who have exhausted all other unemployment payments. The government will provide up to 20 weeks of additional checks, and you do not have to do anything to receive the payments. California will automatically apply those benefits for you, as long as you meet the program’s eligibility and the state’s unemployment rate continues to be above a threshold.
What is the federal government doing?
Washington is grappling with two flashpoints now: The duration of the benefits and the amount.
The Democratic-run House passed legislation in May that would extend the Pandemic Unemployment Assistance and Pandemic Emergency programs through the end of January. The Republican-led Senate balked at the Democrats’ package.
Congress had agreed to add $600 to everyone’s weekly payments from late March to late June, and Trump in August took executive action to add $300 for six weeks. But that extra money ended in early September.
Democrats have proposed reviving the $600 a week boost and keeping it in effect through January. Most Republicans have been willing to go along with somewhat less money.
While House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin continue to negotiate, but nothing is going to happen anytime soon. The Senate is not back in Washington until Nov. 9. The House is scheduled to return Nov. 16.
How long did those benefits continue in previous recessions?
In the past, Washington lawmakers have provided extra help. During and after the 2007-09 recession, unemployed Californians wound up being eligible for 99 weeks of unemployment benefits, though the extra weeks were often approved in piecemeal fashion.
After peaking around 2009, those benefits were gradually scaled down by Congress. By 2013, unemployed California workers were eligible for 63 weeks of benefits.
The long-term unemployment benefits past 26 weeks ultimately expired at the end of 2013.
But this time, Congress has not moved to extend the unemployment benefits, at least not yet. “There have always been fights about extending benefits, but this is a particularly long and difficult one, “ said Michele Evermore, senior policy analyst at the National Employment Law Project.
This story was originally published October 31, 2020 at 5:00 AM.
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