For the estimated 30 million out-of-work Americans struggling to make ends meet during a virus-fueled economic collapse, Friday marks four weeks of living on little more than a few hundred dollars a week in state unemployment compensation. That average income of $370 per week falls shamefully short of what the jobless need to survive, and it’s why Congress and President Donald Trump agreed in March to add $600 a week in federal benefits.
But the federal supplement ended in late July, and Americans — millions of whom lost health coverage along with their jobs — have started making hard choices on spending for essential needs.
The clock ran out in part because the GOP-controlled Senate delayed its relief proposal until July, two months after House Democrats passed theirs in May. But how did Congress respond to this dire situation? It left town. Without a deal.
Lawmakers are not busy attending national political conventions, which are primarily virtual this year. They need to get back to work now and reach an agreement for desperately needed relief.
This would keep countless families financially afloat, and remains one of the best ways to stimulate an economy stricken by virus-related March shutdown orders.
The partial recovery that began after many states quickly reopened has already begun to stall, with the epidemic untamed and an unemployment rate of 10% that continues to rival the Great Recession.
Fortunately, there are signs of movement after weeks of stalemate between House Democratic leaders and the White House.
The House has been called back into session to pass separate funding for the U.S. Postal Service, and Speaker Nancy Pelosi signaled Tuesday that Democrats are open to compromise on a broader relief package, including supplemental unemployment payments.
The amount remains in dispute.
Trump tried to fill the void with an executive action directing a $300 a week federal payment, to be matched by $100 from the states. But the federal money might only last a few weeks, many states say they can’t afford the $100, and lack adequate technology to implement it.
Better to address the situation through legislation. The parties aren’t that far apart: Many Republicans want to cut the federal supplement to $400, while Democrats demand keeping the additional $600. Republicans argue in some cases, that is more than recipients were earning and disincentivizes returning to work.
A compromise might already exist. Three members of the House Democratic caucus have suggested that the $600 could be reduced over time depending on states’ jobless rates.
For lawmakers another week off in August, for vacation, campaigning or fundraising, is just another week. But for jobless Americans, every day of political posturing is another day of staring into the financial abyss.
— Erie Times-News (TNS)
