Jobless Americans to see extra payments as soon as this week

Americans who have lost their jobs due to the coronavirus outbreak will start getting enhanced jobless benefits as soon as this week as states deploy hundreds of billions of dollars in federal aid, state officials said on Tuesday. Congress approved an additional $600 weekly payment for jobless workers as part of an unprecedented $2.3 trillion rescue package signed into law by President Donald Trump on March 27.

It could take several weeks for that money to filter through federal and state bureaucracies into the bank accounts of many of the millions of Americans who have been thrown out of work. Still, qualifying New York residents will see the additional benefit payments this week, according to the state Department of Labor. The enhanced jobless aid, totaling $260 billion, aims to ensure that those who are thrown out of work do not see a big drop in income. The $600 weekly payment bolsters regular jobless benefits that typically are a fraction of a worker’s previous take-home pay. The money could be a lifeline for laid-off workers struggling to secure benefits from states that have been overwhelmed by applications.

The federal aid also expands benefits to part-time workers and freelancers who previously did not qualify. State officials said it could take longer for those people to see benefits. State unemployment systems are facing a deluge of applicants as businesses shut their doors to minimize the spread of the pandemic, which has killed more than 12,000 people and infected more than 380,000 across the United States. Initial weekly jobless claims spiked to more than 6 million last week, a record high.

Source: Reuters

Author: Tuula Pohjola