- The first round of coronavirus benefits has ended. What happens now?
- What benefits did the CARES Act cover?
- What does it mean for me that these protections have lapsed?
- How many people are affected by the CARES Act benefits ending?
- What, if anything, can I do?
- What happens next?
- Extra 0 in jobless benefits ends in days. It could prove
- “Who is going to spend money?”
- Weeks without extra benefits?
- “The labor market is a mess”
- The extra 0 Americans get in weekly unemployment benefits ends this month — how lawmakers are proposing to replace it
- Temporarily extend the extra 0 through August
- Unemployment benefits equal to a worker’s previous wages
- Extending the supplemental 0 through Jan 2021
- A sliding scale of unemployment benefits tied to state unemployment rates
- A return-to-work bonus
- Your Unemployment Benefits Will End Sooner Than Expected
- Will unemployment benefits be extended?
- White House wants Americans to go back to work
- How much unemployment can I get?
- Next stimulus could include second stimulus check
- Related Resources
The first round of coronavirus benefits has ended. What happens now?
The CARES Act has officially expired, ending some benefits and protections. So where does that leave you?
Sarah Tew/CNET For the most up-to-date news and information about the coronavirus pandemic, visit the WHO website.
The CARES Act benefits have expired with no other current plan in place, leaving millions of people across the US waiting to see everything the next stimulus package will contain.
Currently, Republican and Democratic leaders are in negotiations over the newly proposed HEALS Act that could extend some lost benefits to help Americans relieve financial stresses during the coronavirus pandemic.
When the Senate announced the HEALS Act on July 27, there was no mention of renewing federal eviction protections but the proposal would extend enhanced unemployment (in a more limited way), add a second round of stimulus checks and offer a “return-to-work bonus” of up to $450 per week.
Here's what we know today, what to do now that protections are over and when new benefits could take effect. This story is updated with new information.
Now playing: Watch this: Stimulus Checks Helpline
What benefits did the CARES Act cover?
The CARES Act provided, among other things, an additional $600 per week on top of standard unemployment wages. It also temporarily restricted landlords from evicting tenants for not paying rent.
What does it mean for me that these protections have lapsed?
If you're still receiving unemployment benefits, you'll no longer receive the extra $600 per week on your check. That ended July 26 for all Americans when the CARES Act effectively expired (the official end date was July 31). If and when a new economic relief package passes, it looks unly that enhanced benefits will still be $600, but rather between $200 and $500.
July 25 saw the end of the federal eviction protections that temporarily kept landlords from removing tenants who haven't paid rent. If you're issued an eviction notice, your landlord is required to give you 30 days to vacate the premises. That gives you until Aug. 24 before your landlord can file to have you legally removed from your home. See below for some options.
It's unly that the next round of enhanced unemployment benefits will include as much money per week as the previous relief package.
How many people are affected by the CARES Act benefits ending?
As of July 11, over 30 million people were claiming unemployment benefits. In the week ending July 25, 1.
4 million people filed for unemployment for the first time, according to the Department of Labor, marking the 19th straight week of new claims.
These people are eligible to receive their usual unemployment benefits, without the $600 extra weekly assistance afforded by the CARES Act.
Over 40% of renters are at risk of eviction, according to Statista. Economists fear that mass evictions across the country are coming.
What, if anything, can I do?
There are few legal protections now that the CARES Act has ended. You can see if your state, county or city has issued an eviction moratorium.
If you're behind on rent, try reaching out to your landlord if you haven't yet and see if there's a payment plan you can work out until you're back on your feet, lowering the monthly payment or pausing your payments. See here for more tips on both.
You can also seek additional assistance from a local housing coalition that may be able to help you remain in your house or find emergency housing if needed.
Another option is to apply for a hardship loan, which offers deferred repayment options so you don't have to start paying it back immediately. The loan amounts range from $500 to $5,000 with low interest rates.
You can apply for a hardship loan to help with your bills.
What happens next?
The debate over the next stimulus package is ongoing and fierce. If a new bill is passed by Aug. 7 — before the Senate is scheduled to go on recess for a month — it's possible stimulus checks could go out as early as the week of Aug. 17. That could also be around the time other benefits begin or return.
If you're one of the millions of Americans trying to figure out what the next steps are, we've got more information to help you. Here's the difference between the HEALS, CARES and Heroes acts, when your new stimulus check could come from the IRS and how much stimulus money you could get.
Now playing: Watch this: Stimulus standoff on Capitol Hill “,”author”:”Katie Conner”,”date_published”:”2020-08-05T19:15:00.000Z”,”lead_image_url”:”https://www.cnet.com/a/img/aauRq4HP7e7dC9OGKYRjlz1lWmk=/1200×630/2020/08/04/b1c3e7af-b6b4-4695-bde7-14e372508a65/cash-money-savings-digital-banking-online-stimulus-check-phone-app-2020-003.jpg”,”dek”:null,”next_page_url”:null,”url”:”https://www.cnet.com/personal-finance/your-money/the-first-round-of-coronavirus-benefits-has-ended-what-happens-now/”,”domain”:”www.cnet.com”,”excerpt”:”The enhanced unemployment benefits and federal eviction protections are now over, with no other plan approved yet.”,”word_count”:755,”direction”:”ltr”,”total_pages”:1,”rendered_pages”:1}
Extra $600 in jobless benefits ends in days. It could prove
In less than a week, the extra $600 in federal weekly unemployment benefits Americans have been collecting during the recession will come to an end for about 25 million out-of-work adults — a plunge off an “income cliff” that could imperil their ability to pay rent and other bills.
Such a sharp drop in income could be “disastrous” for many families who depend on the supplementary aid to keep afloat during the coronavirus pandemic, said Michele Evermore, senior policy analyst at the National Employment Law Project. Instead, unemployed people will be forced to make ends meet on their state's regular unemployment benefits, which typically replace less than half of a worker's wages.
Most workers will receive their last week of extra jobless benefits this week, despite the Coronavirus Aid, Relief, and Economic Security, or CARES, Act set July 31 as the final day for paying the additional $600 in weekly benefits. But states that disburse their unemployment benefits on weeks that end on Saturdays or Sundays will end the extra benefits either the week ending Saturday, July 25, or Sunday, July 26.
When that happens, jobless workers could face a benefit cut of as much as 85%, depending on which state they live in, according to an estimate from Andrew Stettner, senior fellow at the Century Foundation and an expert on unemployment policies.
Take a worker in Mississippi, which has the lowest average weekly unemployment benefit of all 50 states. After the extra $600 in weekly pandemic aid ends on Saturday, the typical worker's benefits will plunge from about $812 per week to $212 — a roughly 75% decline.
“Who is going to spend money?”
Even in the most generous states, workers are set to experience a steep drop-off in benefits. If they pare spending to offset the hit to their income, that could provide a shock not only to household budgets but also to local economies.
“What's going to happen then with all that uncertainty — who is going to spend money?” Evermore said.
Some of the 10 states where workers face the steepest drop in benefits are presidential battlegrounds including Michigan, Ohio and Pennsylvania, Stettner said. The typical benefit will drop by about two-thirds in each of those three states, declining to an average of $328 per week in Michigan, $364 per week in Ohio and $408 per week in Pennsylvania.
Congressional Republicans are this week negotiating terms of another stimulus package, which could include an extension of enhanced federal unemployment benefits. But many Republicans have pushed for a reduction of the $600 benefit because of concerns that some workers are earning more on unemployment than at their jobs, which some lawmakers say discourages them from returning to work.
One hint of what could be in the works comes from the U.S. Chamber of Commerce, a lobbying group for businesses. It's pushing for a maximum of $400 in extra weekly jobless benefits, which it says would replace about 80% to 90% of a typical worker's wages while keeping benefits low enough to entice people to return to their jobs.
Weeks without extra benefits?
Even if Congress passes a new stimulus package by the end of July, there's ly going to be at least a two-week gap until those extra benefits reach the nation's 25 million unemployed workers, Evermore said. That's because states will need to reprogram their computers to input the new dates for the extra pay, a significant obstacle given that many rely on outdated computer systems.
The gap in benefits could last as long as four weeks if the extra payments expire this month and then are reinstated by Congress, according to Heidi Shierholz, senior economist at the left-leaning Economic Policy Institute. It's unclear whether Congress would include a provision to pay workers retroactively for the missed weeks of pay.
COVID-19's impact on Latino communities 01:51
Among those urging lawmakers to extend the extra $600 in benefits are former Federal Reserve chiefs Ben Bernanke and Janet Yellen. In a Congressional hearing on Friday, Yellen said it would be “a catastrophe” if the benefit wasn't extended, while Bernanke pointed out that the pay helps the overall economy.
“The other purpose of the unemployment insurance is to increase aggregate demand,” he said. “People will go out and spend and that will help the economy generally.”
“The labor market is a mess”
The notion that the extra jobless aid provides a disincentive to return to work has been met by skepticism from some economists, including Mark Zandi, chief economist of Moody's Analytics.
His group has looked at the relationship between unemployment aid and the nation's jobless rate, and hasn't found a connection that suggests many workers are snubbing work to remain on the dole.
That's ly due to two factors: First, people who turn down “suitable work” — such as an offer to return to their job after a furlough — risk losing their unemployment benefits.
Second, the labor market recovery appears to be stalling as a surge in coronavirus around the U.S. forces states to pause their reopening plans, with employers cutting job listings in recent weeks, employment site Glassdoor has found.
That could make it tougher for jobless Americans to find new work.
“The labor market is a mess,” Zandi said in a recent conference call with reporters. “The labor market is really in disarray, so it's hard to argue that people aren't going back to work in a big way because of these disincentive effects.”
The extra $600 Americans get in weekly unemployment benefits ends this month — how lawmakers are proposing to replace it
Americans who have been laid off from their jobs because of the coronavirus pandemic have been able to collect an additional $600 a week in unemployment benefits on top of what they get from their state. That extra relief was part of the $2.2 trillion stimulus package known as the CARES Act.
But if lawmakers fail to act by the end of this month, Americans who are work will see that $600 a week disappear from their unemployment checks. That could strip more than 20 million Americans of nearly $842 billion to spend, according to data released by the Bureau of Economic Analysis, a U.S. government agency that provides official macroeconomic and industry statistics.
The supplemental $600 Americans receive has been controversial, especially given that two-thirds of laid-off workers receive more money from their unemployment benefits than they did from their jobs. But at the same time, proponents of the extra $600 say that decreasing those benefits could cost the country even more jobs.
As lawmakers consider a new round of stimulus funding, there are four major proposals on the table on how to replace the extra $600, two of which would allow unemployed Americans to receive additional funds on top of state unemployment benefits. Another calls for capping the benefits at the amount equivalent to a worker’s prior wages. One calls for just the opposite of unemployment benefits — a return-to-work bonus.
As the July 31 deadline approaches, Senate Republicans hinted at a temporary resolution to buy lawmakers more time ahead of their August recess.
Temporarily extend the extra $600 through August
Senate Republicans indicated Wednesday that discussions were taking place to keep the status quo with unemployment benefits through August.
“It’s still in the mix and the discussions come down to both the duration, how long and at what price point,” said Sen. John Barrasso, a Republican from Wyoming, on Wednesday.
Ohio Republican Sen. Rob Portman confirmed that, but urged lawmakers to work on finishing “the entire [stimulus] package” by the end of the week rather than implementing temporary fixes. “If we can’t get it all done by next week we can’t allow there to be a cliff in unemployment insurance,” he said.
White House Chief of Staff Mark Meadows echoed Portman’s views, saying that “having some short term of [unemployment insurance] just to allow for longer negotiation is certainly not worthy of consideration,” Politco reporter Jake Sherman tweeted Wednesday evening.
Unemployment benefits equal to a worker’s previous wages
Treasury Secretary Steven Mnuchin said he supports a new stimulus package that would provide “no more than 100%” of jobless workers’ former wages.
“Enhanced unemployment is intended for people who don’t have jobs, particularly in industries that are harder to rebound, so we will not be doing it in the same way,” Mnuchin said on CNBC on last week.
Mnuchin added that he had a “productive call” with Senate Majority Leader Mitch McConnell regarding another stimulus package, which could include another round of direct payments checks.
Mnuchin, President Donald Trump has said he’s against extending the $600 past July, saying that it gives Americans “a disincentive to work.”
However, Trump said Tuesday that those benefits won’t go away completely.
He said he was against the original decision to offer an additional $600 in federal benefits to unemployed Americans on top of their state benefits, adding that “it still worked out well because it gave people a lifeline.”
“Now we’re doing it again,” he said. “They’re thinking about doing 70% of the amount.” It’s unclear whether Trump meant extra benefits could drop to $420 extra a week on top of state unemployment benefits, or if the benefits would be equal to 70% of a person’s prior income.
Extending the supplemental $600 through Jan 2021
In May, the Democratic-run House passed the $3 trillion HEROS Act, which would, among other things, extend the extra $600 federal unemployment benefit to January 2021.
The Congressional Budget Office found that if these benefits were extended through January 2021, an estimated five of every six recipients would receive more in benefits than they would from working those six months.
“ If these benefits were extended through January 2021, five of every six recipients would receive more in benefits than they would from working those six months, according to the Congressional Budget Office. ”
“If the benefit of $600 per week was extended, fewer than one in thirty recipients would receive benefits — generally the maximum amount in their state — that were less than 50% of their potential earnings,” the CBO report states.
Some have argued those generous benefits will keep people from seeking new jobs. But extending the $600 unemployment benefit would mean that Americans would have more money to spend in stores, and that could ultimately lead to lower unemployment, Heidi Shierholz, an economist at the Economic Policy Institute, a left-leaning think-tank based in Washington, D.C., said.
“It’s not true that there’s a pool of jobs out there that people would fill if they weren’t receiving unemployment benefits,” she said.
Related: ‘We are saving every penny we can’: What life could look for this 66-year-old man when he loses all his unemployment benefits next month
For every dollar spent on unemployment insurance, there’s a multiplier effect leading to a 1.64 increase in GDP, according to a 2008 study published by Mark Zandi, chief economist at Moody’s Analytics MCO, +2.82%. Meanwhile, for every dollar spent on infrastructure projects, U.S. GDP could be expected to increase by a multiple of 1.59.
McConnell said in May that the HEROS Act “reads the speaker of the House pasted together random ideas from her most liberal members and slapped the word ‘coronavirus’ on top of it.” He also referred to it as a Democratic “wish-list.”
A sliding scale of unemployment benefits tied to state unemployment rates
Un the HEROS Act, one Democratic proposal which has bicameral support calls for additional unemployment benefits that are tied to state unemployment rates.
The proposal, introduced by Senate Minority Leader Chuck Schumer and Oregon Sen. Ron Wyden in early July would extend the $600 unemployment benefit “until a state’s three-month average total unemployment level falls below 11%.”
“Once the unemployment rate falls below 11%, the benefit amount reduces by $100 for each percentage point decrease in a state’s unemployment rate,” the proposal states. These enhancements would remain in place until March 2021.
For instance, beneficiaries in a state with an unemployment rate between 7% to 8% would receive an additional $200 a week on top of their state’s unemployment benefits.
Schumer and Wyden’s proposal shares similarities with a separate proposal Rep. Don Beyer, a Virginia Democrat, introduced last month. That proposal garnered support from Former Federal Reserve Chairmen Ben Bernanke and Janet Yellen.
The main difference between the two is that Beyer’s would allow Americans to continue to receive the additional $600 benefit for as long as the national emergency or state emergency for COVID-19, the disease caused by the novel coronavirus, is in effect. Once the national or state emergency is terminated, jobless Americans would receive benefits their state’s unemployment level.
“ ‘We continue to push for inclusion of automatic stabilizers in relief legislation, and I feel it is a top priority because it would help to prevent some of the political obstruction that unnecessarily prolonged the Great Recession.’ ”
— Rep. Don Beyer, a Virginia Democrat and sponsor of the Worker Relief and Security Act
“We continue to push for inclusion of automatic stabilizers in relief legislation, and I feel it is a top priority because it would help to prevent some of the political obstruction that unnecessarily prolonged the Great Recession,” Beyer, who supports the Schumer-Wyden proposal, told MarketWatch.
Proposals that tie unemployment benefits to a states’ unemployment rate are the most logical, said Michele Evermore, a senior policy analyst at the National Employment Law Project, an advocacy organization focused on workers’ rights.
“ ‘Unemployment benefits should always be pegged to economic conditions.’ ”
— Michele Evermore, a senior policy analyst at the National Employment Law Project
“Unemployment benefits should always be pegged to economic conditions,” she said. When the CARES Act passed in March, the economic impacts of coronavirus “didn’t seem it would go on as long as it has or be as bad as it is.
” So at that time, it seemed reasonable to provide the additional $600 through July. But even though 2.
5 million workers went back to work last month, more than 21 million Americans are work, which is a sign that additional support is needed, Evermore said.
A return-to-work bonus
The most recent unemployment report was surprisingly positive and showed that 4.8 million Americans had gone back to work — a sign that there are more job openings as states reopen parts of their economy. Extending the $600 weekly benefit past July would disincentive Americans from returning to work if they receive more money from remaining unemployed, says Portman.
He’s proposing a back-to-work bonus, which would provide an additional $450 a week for Americans who return to work.
“Not only is the return-to-work bonus proposal the right policy in terms of incentivizing people to safely return to work and allowing businesses to reopen, but it could also benefit the American taxpayer through significant cost savings compared to the current money we’re spending on the CARES Act unemployment benefits,” Portman said in a statement to MarketWatch.
“ ‘We need to be sure that there’s no financial disincentive for these individuals to get back into the workforce when those jobs become available to them again.’ ”
— Sen. Rob Portman, a Republican from Ohio
“Moving forward, it is critical that we have a workforce that’s ready to step into their old jobs or newly available jobs now that the economy is safely reopening,” Portman said previously.
“Given that more than 15 million unemployed Americans are categorized as ‘temporary layoffs,’ we need to be sure that there’s no financial disincentive for these individuals to get back into the workforce when those jobs become available to them again.”
National Economic Council Director Larry Kudlow has said that the Trump administration is looking “very carefully” at Portman’s proposal, which Portman said he plans to introduce more formally this week.
Beyer said this proposal “inherently misunderstands the root cause of unemployment: a deadly pandemic, and also fails to look ahead to the looming demand crunch which will fuel new rounds of job cuts.”
The return-to-work bonus could end up incentivizing people to take “the wrong jobs,” Evermore said. “People will take the first job they get,” she said, which could mean settling for a job that pays less or one for which they’re overqualified.
This story was updated on July 22, 2020.
Your Unemployment Benefits Will End Sooner Than Expected
President Donald Trump (Photo by SAUL LOEB/AFP via Getty Images)
AFP via Getty Images
Your $600 a week unemployment benefits will now end sooner than expected.
Here’s what you need to know.
The $600 a week unemployment benefits were slated to expire on July 31. However, according to USA Today, they will now expire one week early. This means that states could stop paying unemployment benefits as early as July 25 or July 26. The U.S. Labor Department told USA Today:
“The (Federal Pandemic Unemployment Compensation) $600 can be paid for weeks ending no later than the week ending prior to Friday, July 31, 2020. For all states except (New York), that is Saturday, July 25th. New York's end date is Sunday, July 26th.”
Why the mix-up? It all comes down to the details, as USA Today explains. The Cares Act says these supplemental benefits will end “on or before July 31.” However, most states pay unemployment benefits on a weekly or bi-weekly basis ending on a Saturday or Sunday. Therefore, unemployment benefits will end earlier than expected on the last Saturday or Sunday of July.
Will unemployment benefits be extended?
Senate Majority Leader Mitch McConnell has said he does not plan to extend these unemployment benefits in the next stimulus bill. Similarly, White House economic adviser Larry Kudlow also expects that these unemployment benefits will not be extended.
This means that the supplemental unemployment benefits that Congress approved through the Cares Act ly will expire. Only these supplemental benefits will end; traditional unemployment benefits still will be available.
The House of Representatives passed the Heroes Act, a $3 trillion stimulus package, which would extend the $600 a week unemployment benefits through January 31, 2021. However, absent support from Senate Republicans, the Heroes Act will not become law.
White House wants Americans to go back to work
The White House is focused on boosting jobs numbers and encouraging people to return to work.
Kudlow has argued that, given the current amount of unemployment benefits, it’s possible that you can receive more money being unemployed than being employed, which can create a potential disincentive to return to work, which also can create a longer-term unemployment issue.
Instead of supplemental weekly unemployment benefits, Senate Republicans and the White House may consider a cash bonus for workers to return to work. A “return to work” bonus would pay someone who is unemployed a financial bonus to get a job or return to their job if they are furloughed. Sen.
Rob Portman (R-OH) proposed a $450 weekly bonus for every individual who returns to work before July 31, 2020. In contrast, Sen. Ron Wyden (D-OR) has proposed that Congress extend unemployment benefits a state’s unemployment rate.
How much unemployment can I get?
What happens once these $600 a week unemployment benefits disappear? You can still receive traditional unemployment benefits through the state where you last worked. Unemployment benefits are managed at the state level, so each state sets its own eligibility criteria and amount of unemployment benefits.
In most states, you are paid weekly and can receive unemployment benefits up to half your wages, subject to a maximum benefit. Most states such as New York, California and Texas offer 26 weeks of unemployment benefits through a state-funded unemployment insurance system.
States such as Florida and North Carolina each offer 12 weeks of unemployment benefits. You can still receive up to 39 weeks of unemployment through Pandemic Emergency Unemployment Compensation(PEUC), which provides an additional 13 weeks of unemployment benefits.
If your state provides less than 39 weeks of unemployment benefits, you can receive the difference through Pandemic Unemployment Assistance (PUA).
Next stimulus could include second stimulus check
All eyes are on the next stimulus bill, which Congress will vote on this month. If these unemployment benefits are not extended, will Americans who are unemployed or furloughed receive any other financial relief? Senate Republicans have said “don’t expect a second stimulus check.
” That said, many people have questions about a second stimulus check and whether they are eligible. The next stimulus package may include a second stimulus check, although McConnell opposes a second stimulus check, citing the high cost and his focus on other economic incentives.
President Trump said there will be another stimulus package and is open to a second stimulus check, which could help offset the end of these unemployment benefits. However, Trump has not guaranteed there will be second stimulus checks.
If there is a second stimulus check, your second stimulus check could look this.
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