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Presidential EO raises more questions than answers on unemployment benefits

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Illinois

* AP…

Trump announced an executive order Saturday that extends additional unemployment payments of up to $400 a week to help cushion the economic fallout of the pandemic. Congress had approved payments of $600 a week at the outset of the coronavirus outbreak, but those benefits expired Aug. 1 and Congress has been unable to agree on an extension. Many Republicans have expressed concern that a $600 weekly benefit, on top of existing state benefits, gives people an incentive to stay unemployed.

But under Trump’s plan, the $400 a week requires a state to commit to providing $100.

Many states are already facing budget crunches caused by the pandemic. Asked at a news conference how many governors had signed on to participate, Trump answered: “If they don’t, they don’t. That’s up to them.”

Trump expressed a different view on Sunday night, following a day of state officials questioning how they could afford even $100 per person in additional weekly payments. He told reporters as he returned to Washington that states could make application to have the federal government provide all or part of the $400 payments. Decisions would be made state by state, he said.

* CNN…

Because Congress has not authorized an extension of extra federal unemployment assistance, the state will have to set up an entirely new system to deliver the additional aid.

“The state has to enter an agreement saying not only can they pay the benefit, but that they have some ability to administer the benefit,” said Michelle Evermore, an unemployment expert at the National Employment Law Project.

Building a brand new program could take states months to accomplish, Evermore said. She added Trump needed to do it this way because “in order for states to administer a benefit it has to be authorized by Congress, so they can’t use their administrative systems to pay a benefit that hasn’t been authorized by Congress.”

Few will be helped. Evermore, one of the nation’s leading experts on unemployment, told CNN she considered the chances of this effort helping many of the newly unemployed due to Covid-19 “low.”

Lastly, according to the memorandum, an individual can only receive the $300 federal benefit if he or she first qualifies for $100 in aid from their state. Evermore said this will cut out a large group of people. “There are so many problems with people getting a benefit under this,” she said.

* Statement from Gov. JB Pritzker…

Serious problems require serious leadership, which is why it’s a shame Donald Trump is in the White House. The President needs to do what’s right and work with Congress to pass a comprehensive aid package that supports working families instead of legally questionable theatrics.

posted by Rich Miller
Monday, Aug 10, 20 @ 9:32 am

Comments

“Decisions would be made state by state, he said.”

I have this strong feeling Illinois would not be assisted with that 25% contribution.

Comment by IL Concerned Monday, Aug 10, 20 @ 9:45 am
== But under Trump’s plan, the $400 a week requires a state to commit to providing $100.==

I don’t think the AP saw Trump advisor Larry Kudlow on the teevee like I did yesterday. He said the benefit could be $400, but he also said it would be $800, then said it could even be $1,200. He also stated that states would definitely have to pay $100, but it could also be $1, or it might also be $0. I’m sure the AP will figure out which it is just as soon as the administration does

Comment by Lester Holt’s Mustache Monday, Aug 10, 20 @ 9:55 am
===He said the benefit could be $400, but he also said it would be $800, then said it could even be $1,200.===

Sounds like he could’ve been confusing the weekly benefits with the potential stimulus checks.

Comment by Cubs in '16 Monday, Aug 10, 20 @ 9:58 am
Secretary Mnuchin said on CNN that the $100 state contribution would come from Federal money already given to the states

Comment by Lucky Pierre Monday, Aug 10, 20 @ 10:08 am
Can’t the states borrow from the Federal UI Trust Fund? I’m not following why a new system needs to be built. This seems more formulaic more than a system issue?

Comment by 1st Ward Monday, Aug 10, 20 @ 10:21 am
===He said the benefit could be $400, but he also said it would be $800, then said it could even be $1,200.===

==Sounds like he could’ve been confusing the weekly benefits with the potential stimulus checks.==

He was deliberately trying to make it sound as if the administration was providing the entire pot of money. Eventually he was forced to admit that the ststes’ normal unemployment ( which he implied was $400 weekly) would combine with the new federal $300, if the state put in an additional $100, to total $800. He tried to imply that all the ststes has money to our in the extra $100.

The $1200 was his guess at the ‘savings’ from the payroll tax holiday. Which is not a savings, just a deferral of your FICA until you file your tax return, so no savings. Even my spouse, a staunch Trump supporter, thought Kudlow did a terrible job in that interview.

Comment by thoughts matter. Monday, Aug 10, 20 @ 10:38 am
Congress has gridlocked on the new benefits. Both parties are to blame. Tightly or wrongly, Trump is going around the roadblocks where he can. Legally, it is questionable. Politically, it is smart because anyone that challenges it can be painted as delaying relief to the American public.

Specifically to IL, the State needs to find the money for the $100 match while asking the Feds for relief and borrowing even more from the Feds if they can. For the short term, a new bond issuance is likely off the table.

So, if the State doesn’t have Federal aid money left and can’t borrow from the Feds or in the marketplace, I expect the State will go to their last resort: a pension holiday to free up cash.

Comment by RNUG Monday, Aug 10, 20 @ 10:39 am
== Specifically to IL, the State needs to find the money for the $100 match==

Does it though? The President’s economic advisor specifically said “But I think all they have to do is put up an extra dollar and we’ll be able to throw in the extra $100,”. That seems to imply IL could only have to provide $1. Or possibly $0, I’m not sure how to translate “throw in the extra $100” statement. Maybe he meant to say extra $99?

Comment by Lester Holt’s Mustache Monday, Aug 10, 20 @ 11:00 am
“I expect the State will go to their last resort: a pension holiday to free up cash”

PO Bonds before a pension holiday will happen.

Comment by 1st Ward Monday, Aug 10, 20 @ 11:32 am
===Legally, it is questionable. Politically, it is smart because anyone that challenges it can be painted as delaying relief to the American public.===
It would be judges who challenge this. I’m not sure they would suffer any fallout because they are appointed. And an EO that is stopped is the same as no EO at all.

Comment by Two to tango Monday, Aug 10, 20 @ 11:54 am
@ 1st Ward: The state’s UI Trust Fund is going to be $8 - 10 BILLION under water soon. We are already borrowing from the Feds to pay the regular weekly benefits. Another reason we couldn’t borrow from the Trust Fund is because the federal UI law has very strict requirements and prohibitions. That is what the person from NELP was referring to about setting up a new system, I suspect. If the state runs afoul of the federal law by paying the supplemental benefit from the Trust Fund (assuming we could), we would probably lose a big chunk of the federal money we get for administering the system (i.e. paying IDES salaries, etc).

Comment by Hyperbolic Chamber Monday, Aug 10, 20 @ 12:16 pm
===Secretary Mnuchin said on CNN that the $100 state contribution would come from Federal money already given to the states===

Isn’t like counting the same “dollar” twice… to pay for two different things.

You decry this. I can show you where if you like.

Comment by Oswego Willy Monday, Aug 10, 20 @ 1:12 pm
@Hyperbolic Chamber - Given the severity of the crises I would assume additional states are or will be in similar situations as Illinois in short-order thus some re-working of the rules will likely occur in the coming years. States providing an additional $100 in benefit isn’t make or break compared to duration and severity of the larger crises at hand.

Comment by 1st Ward Monday, Aug 10, 20 @ 1:24 pm
==Secretary Mnuchin said on CNN that the $100 state contribution would come from Federal money already given to the states==

If that’s the case then it’s not state money now is it? They don’t even know what it is they’ve proposed apparently, which is unsurprising given the track record of how this Administration rolls out Executive Orders.

Comment by Demoralized Monday, Aug 10, 20 @ 4:31 pm
They know what they did. You won’t convince me McConnell didn’t intentionally put off negotiations 3 months after the cares act to pretend to negotiate in the last week. I wouldn’t be surprised if Trump and McConnell didn’t plot this out cause they know it won’t happen and now republicans in congress don’t have to vote against aiding the public and the political fallout that would come of it. The Reps couldn’t even agree on their own plan until 3 days before expiration. Now Trump gets to say i tried when all it did was silence the will of the people in the elected congress to get the ends he and McConnell wanted from the begining

Comment by Cygnus Wednesday, Aug 12, 20 @ 2:16 pm
I only have three hundred of unemployment with eight kids president Trump is taking this matter with trillions of dollars like this is something somebody Deserve to feed little kids wash clothes buy dampers with three hundred dollars I’m not interested in how he living but the concerns of people suffering this is a very careless act and hurtful

Comment by Laquita Wednesday, Aug 19, 20 @ 9:45 am
What I understand is Trump said that all states must apply for the benefits,& he wanted them to give 25% & the executive order will pay 75%. & this would give 400 extra in the unemployment.
But if the states can not afford the 25% then 300 would be the amount given out extra during the coronavirus epidemic. But each state must apply for these benefits & state the reasons why they can not afford the extra 100. & my understanding of that was is whom ever state that says that they dont have the extra income best tread lightly. This is what I got out of these conversations.

Comment by Bernice Ghost Thursday, Aug 20, 20 @ 2:01 am
So will Illinois receive the extra money???

Comment by Schaumburg IL Thursday, Aug 20, 20 @ 11:13 pm
nobody knows about the unemployment, other states have started the process, unfortunately illinois has not.. call the governors office,.or your state representative. Still waiting response

Comment by Db Friday, Aug 21, 20 @ 9:52 am