Now, 24 states plan to cut off federal jobless benefits, with some as soon as June 12. We’ll explain what’s happening with those bonus checks, pandemic relief aid and unemployment tax refunds.
What is happening with unemployment benefits today? As part of the American Rescue Plan of 2021, the federal government authorized an extra $300 a week in jobless aid and extended pandemic unemployment assistance for the self-employed, with an expiration date of Sept. 6. However, governors in 24 states have pledged to cancel their participation in these programs early, leaving millions of struggling Americans in the lurch this summer.
As the economy begins to recover from the pandemic, there are plenty of cries to hold on to that supplemental assistance. But the Department of Labor said the federal government won’t intervene if individual states terminate those bonus payments. Given the White House can’t force state governors otherwise, many people, such as the long-term unemployed and freelancers, will end up losing aid entirely.
We’ll tell you what you should know, including how the IRS has started refunding millions to those taxed on their 2020 unemployment payments. Here’s more information about the advanced child tax credit payments starting in July and stimulus “plus-up” payments. You might also be interested if the government has back pay you need to claim. This story has been updated recently with new information.
List of states ending all or some of the enhanced federal unemployment benefits
With Nebraska announcing the end of its program most recently, 24 states plan to cancel the pandemic-related unemployment benefits. Citing labor shortages, state governors say this unemployment coverage discourages workers from taking jobs. Many economists and analysts disagree, noting that several factors are preventing people from finding suitable work — including lack of child care and fear of contracting COVID-19.
A few days after Montana reported its withdrawal from pandemic-related unemployment programs on May 4, the US Chamber of Commerce called for an end to the $300 weekly federal bonus. Other states then followed.
Here are the states that have announced an early halt to enhanced jobless benefits, and the new end dates. (If your state is not listed here, benefits are set to expire on Labor Day.) ReadMore
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