- The House of Representatives Democrats currently have no plan to extend federal unemployment benefits, and the plan will end in two weeks.
- John Arms, chairman of the House Budget Committee, told Insider that another extension did not form part of future spending negotiations.
- Biden Administration Tell the states recently They can use the remaining stimulus funds to extend their unemployment benefits on their own.
House budget chairman John Arms said that House Democrats are unlikely to include the extension of federal unemployment benefits in their planned $3.5 trillion spending plan.
“I have not heard of any interest in extending [enhanced unemployment insurance],” a Kentucky Democrat told Insider. “This is not part of the discussion.
All pandemic assistance programs for the unemployed will expire at the federal level within two weeks. This includes pandemic unemployment assistance for gig workers and freelancers, and another federal initiative to provide payments for those who have exhausted state benefits. A recent analysis by the Leftist Century Foundation predicts that 7.5 million people will lose all unemployment assistance after the September 6 expiration date.
Yarmuth’s remarks are a frank assessment of the possibility of UI postponement among House Democrats. Due to resistance from moderates in their ranks, Senate Democrats are also unlikely to seek an extension.
Senator Joe Manchin of West Virginia Told Insider earlier this month He does not support the expansion of unemployment insurance.
“I have completed the extension. The economy is recovering,” he said.Other moderates, including Maine Senator King Angus Recently also said He is unwilling to support it.
Democrats are using an arduous process called reconciliation to ensure that a $3.5 trillion spending plan is passed to bypass the Republican opposition, but it requires Democrats not to break the hierarchy.
Biden Administration Tell the states recently They can use the remaining aid funds in the $1.9 trillion stimulus law to extend their unemployment benefits on their own.
Although some people blame COVID-19 unemployment benefits for the slow job growth in recent months, an analysis in July found that People did not return to work immediately In some states that cut federal unemployment insurance early.
Economists say that with school closures and lack of childcare services, the risk of infection is one of the factors preventing people from returning to work.
New research It was discovered in August that early termination of unemployment benefits would result in a significant reduction in spending—states that cut unemployment benefits in June reduced them by nearly $2 billion. As federal benefits begin to be cut in September, researchers predict that the rollback may result in a $8 billion reduction in spending throughout September and October.