Wisconsin: Residents Asked to Return $300 in Unemployment Assistance

Wisconsin: Residents Asked to Return $ 300 in Unemployment Assistance Americans are unlikely to receive more financial aid before Novembe...

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  • Wisconsin: Residents Asked to Return $ 300 in Unemployment Assistance
  • Americans are unlikely to receive more financial aid before November
  • The state is following the guidance of the Federal Emergency Management Agency

They request to return unemployment assistance to residents of the state of Wisconsin if Congress approves a new relief, according to a report by USA Today.

Wisconsin residents who receive an additional $ 300 in unemployment benefits weekly will be asked to pay the money back, if Congress enacts new legislation to replace unemployment assistance created by President Trump’s executive action last month.

According to the report, job and unemployment experts worry that this could leave many US residents out of work and confused about what to do.

It happens at a time when the money ordered by Trump has already been delayed and Congress has not approved a new aid package for the unemployed.

Some lawmakers say Americans are unlikely to receive more financial aid before November.

Should Republicans and Democrats approve new aid in the future, unemployed people receiving the federal benefit could be seen as a double dip: They would receive a back pay from the new legislation, even though they have already been paid to through Trump’s executive action.

“All this confusion only creates more administrative burdens at a time when people are spending more time without benefits, living standards are falling and poverty is increasing after millions lost their jobs through no fault of the pandemic,” said Heidi Shierholz , a senior economist and policy director at the left-leaning Institute of Economic Policy.

A spokesman for the Wisconsin Department of Workforce Development said the state is following guidance from the Federal Emergency Management Agency, which is funding Trump’s Lost Wage Assistance program, and the Department of Labor.

FEMA, however, said that the states administer the program while the agency provides the funds.

Filed under: Request to return unemployment aid

It is not yet clear how widespread this is beyond Wisconsin. Colorado, Indiana, Georgia, Iowa, Alabama, Idaho, Arizona, Arkansas, Hawaii, Alaska and Nebraska said they are not advising recipients to return the money.

The Louisiana Workforce Commission said it will monitor congressional legislation, adding that it will ensure future guidelines provided by the Department of Labor are followed.

The $ 300 weekly benefit is retroactive to August 1 for qualifying workers. Wisconsin DWD does not anticipate that it will be forced to recover claimants’ help, although its own website posted the warning to unemployed residents who tried to file unemployment claims.

It is unclear whether future aid from Congress will be retroactive to Aug. 1, meaning the payments would overlap, a spokesperson said.

The DWD anticipates that if Congress passes new legislation, it will begin once Trump’s Lost Wage Assistance program expires during the week ending Sept. 5 so there is no overlap, they added.

Overpayment?

Still, a potential overpayment problem threatens to create problems in states beyond Wisconsin if Congress allows retroactive payments to overlap, experts say. States could face a reckoning on how to get the money back if people were overpaid, they warned.

“There is a strong possibility that Congress could roll back a new aid program, creating problems for states that have already distributed money from the Lost Wage Assistance program,” says Andrew Stettner, unemployment expert and senior fellow at The Century Foundation, a group of experts.

“If Congress does not address this in a new aid package, there would be an overpayment situation for many unemployed Americans across the country that would have to be resolved,” he added.

Filed under: Request to return unemployment aid

Nightmare scenario for unemployed Americans

Michele Evermore, lead researcher and policy analyst for the National Employment Law Project, was concerned that something like this could happen as states rushed to kick-start Trump’s Lost Wage Assistance program when it was enacted in August. . The program replaces the $ 600 federal unemployment supplement that expired at the end of July.

“This would be a nightmare for both unemployed Americans and state unemployment systems if people were forced to pay the money back,” Evermore says. “Wisconsin is not necessarily wrong in sharing a disclaimer. It is worth informing people that this temporary benefit is uncertain. “

In August, President Trump called for a federally funded $ 300 per week unemployment benefit for workers who were unemployed due to the pandemic after talks on coronavirus relief stalled in Congress.

Trump ordered FEMA to run the $ 300-a-week relief program through its Disaster Relief Fund, which would be capped at $ 44 billion. It was supposed to last until December. But experts estimate that states will run out of funds after about five to six weeks from early August, threatening to put Americans out of work without the extra help in a matter of weeks after Congress failed to pass another package of funds. help this month.

And some states, including Arizona, Missouri and Montana, have already exhausted the funds. And Texas said Wednesday that the disbursement of the additional $ 300 would expire for the week ending Sept. 5.

The latest failed attempt to reach an agreement in Washington may have been the last chance for lawmakers to agree on a stimulus bill before the November election. Some economists say the interruption of aid could spell trouble for household spending, which accounts for more than two-thirds of America’s economic growth.

Nearly 30 million Americans are receiving unemployment benefits, according to the Department of Labor. State unemployment programs cover only about 41% of someone’s lost wages, data from the Brookings Institution shows.

Filed under: Request to return unemployment aid

“Some people cannot meet their basic needs with regular state benefits. It’s only going to get more difficult until the economy recovers, “says Stettner.” People may be forced to make more drastic decisions by raiding their 401 (k) or selling their homes, creating a larger inequality gap in America. “

Almost every state except South Dakota has applied for funds through FEMA. So far, at least 22 of them have started to shell out the money.

States typically cannot afford unemployment insurance that is not authorized by Congress. That is why they have been forced to reconfigure their systems to distribute the funds, which has caused long delays.

Wisconsin, a key state in the US elections, received approval to provide an additional $ 300 per week in federal aid for three weeks to those who are unemployed due to lost wages from the pandemic. And additional weeks of funding will be determined weekly thereafter.

Filed under: Request to return unemployment aid

 

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