With millions of Americans still out of work due to the coronavirus pandemic, many are counting on that extra $600 a week from the federal government. But those benefits might run out earlier than expected.
Currently, the benefits are set to expire on July 31st. But the rules specify that payments will end “the week ending prior to Friday, July 31st” – meaning for many people, the last payment will arrive on July 25th or 26th.
Come July 31, if the emergency UI top-up isn’t extended, unemployed workers will effectively get a pay cut of 50-75% overnight.
— Ernie Tedeschi (@ernietedeschi) May 19, 2020
33 million people are currently collecting or have applied for unemployment benefits since March. Congress is currently debating whether or not to extend the $600 per week benefit beyond July.
Should the government extend the $600 a week payout through the end of the year? What will be the economic impact once it runs out?