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11.4 million Americans are facing an unemployment benefit cliff if Congress doesn't act soon, new report finds

Published by Business Insider on Wed, 10 Feb 2021


<p><img src="https://static1.businessinsider.com/image/5f88fa3e9e9fe40019009ab6-2400/unemployment insurance weekly benefits stimulus checks recession job losses coronavirus pandemic.jpg" border="0" alt="unemployment insurance weekly benefits stimulus checks recession job losses coronavirus pandemic" data-mce-source="Joe Raedle/Getty Images" data-mce-caption="Carlos Ponce joins a protest in in Miami Springs, Florida, asking senators to continue unemployment benefits past July 31, 2020."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Unemployment benefits will expire in mid-March if Congress does not pass a stimulus package before then, putting 11.4 million Americans at risk of losing needed aid.</p><p>As part of his $2 trillion stimulus proposal, President Joe Biden called on Congress to extend unemployment benefits through the end of September and provide $400 weekly benefits to unemployed Americans. The House Ways and Means Committee's stimulus bill <a href="https://www.businessinsider.com/democrats-coronavirus-stimulus-measure-extend-monthly-unemployment-benefits-through-august-2021-2">unveiled</a> on Monday included Biden's proposed $400 weekly benefits, but those benefits would end on August 29. Regardless of the proposal to extend the benefits, key jobless aid measures will expire on March 14 if Congress does not pass a stimulus package before then.</p><p>In a <a href="https://tcf.org/content/report/11-4-million-workers-facing-jobless-benefit-cliff-starting-march-14-unless-congress-acts-swiftly/'agreed=1">report</a> released on Wednesday by The Century Foundationa progressive, nonpartisan think tankit found that 11.4 million American workers will lose their unemployment benefits between March 14 and April 11 without a new pandemic relief package.&nbsp;</p><p>"The jobless benefits passed in the December stimulus package are responsible for lifting more than 7 millions Americans out of poverty in January, but Americans will need strong unemployment benefits to be in place through at least the end of September if they are to weather the storm of the pandemic," the report said.</p><p>Here are the main findings of the report:</p><ul><li>4.05 million workers will see their unemployment benefits end immediately on March 14, 11 weeks after receiving benefits from the December stimulus package;</li><li>7.32 million workers will see their benefits end sometime between March 14 and April 11;</li><li>States with large populations, like New York, California, and Pennsylvania, will bear the biggest brunt of the benefits cutoff, with more than 10% of the labor force in those states potentially impacted;</li><li>And at the end of the "soft cliff" on April 11, only 12 states will be added onto the federal Extended Benefits program, meaning that only 700,000 workers will be eligible for benefits after the temporary programs expire.</li></ul><p>Delays in providing unemployment aid cost jobless workers <a href="https://tcf.org/content/commentary/tardy-stimulus-action-causes-pandemic-unemployment-benefit-delays/">over $17 billion</a> in benefits in the first four weeks of January, which had dire implications for families struggling with food insecurity and rent payments.</p><p>Toby Malara, a government affairs counsel at the American Staffing Associationa trade association that represents the American workforcetold Insider that extended unemployment insurance is vital to help workers recover from the pandemic.</p><p>"Way too many Americans right now are in desperate need of unemployment insurance assistance and would be in a lot of trouble come March, middle of March, if they expired," Malara said.&nbsp;</p><p>And in a new <a href="https://www.cbpp.org/blog/covid-relief-package-includes-important-unemployment-benefit-extensions-but-duration-should-be">analysis</a> from the Center on Budget and Policy Priorities, it said that the Ways and Means proposal to extend benefits through August, rather than September, is insufficient given that Congress is typically not in session at the end of August, so there would be a benefits lapse.&nbsp;</p><p>Sen. Ron Wyden of Oregon expressed discontent with the proposal to extend benefits for only five months and said on <a href="https://twitter.com/RonWyden/status/1359264872014352391">Twitter</a> that he will fight to preserve six months of unemployment benefits.</p><p>"Congress doesn't have to choose between providing income for jobless workers and direct checks," Wyden said. "Democrats can and must do both."</p><p>Speaker of the House Nancy Pelosi said she aims to get a pandemic relief package passed at the <a href="https://www.businessinsider.com/stimulus-pelosi-biden-relief-package-timeline-congress-pass-february-2021-2">end of February</a>, but it remains dependent on how quickly Congress can vote on stimulus measures.&nbsp;</p><p><a href="https://www.businessinsider.com/jobless-americans-face-unemployment-benefit-cliff-congress-doesnt-act-2021-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/electric-planes-future-of-aviation-problems-regulations-2020-3">Why electric planes haven't taken off yet</a></p>
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