Will the federal government extend the extra COVID-19 unemployment benefits?
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Congress and President Donald Trump are deciding whether to extend the extra $600 a week in unemployment benefits workers are getting because of the pandemic.
Marketplace’s Nancy Marshall-Genzer has the latest on this. She spoke with “Marketplace Morning Report” host David Brancaccio, and the following is an edited transcript of their conversation.
David Brancaccio: Yesterday, the U.S. labor secretary said he believes the program should not be extended?
Nancy Marshall-Genzer: Labor Secretary Eugene Scalia testified yesterday before the Senate Finance Committee. He pointed to last week’s unexpectedly good jobs report, which showed unemployment fell in May, to about 13%. The extra $600 a week payment is set to expire at the end of July. It’s on top of regular unemployment benefits, which would continue. Scalia says by July 31, much of the economy will be back open, and employers will be hiring.
Brancaccio: But many want the $600 a week extended, including Democrats?
Marshall-Genzer: Democrats say unemployment is still historically high. And they don’t want people to feel like they have to go back to jobs they feel are unsafe because of COVID-19. Democrats want to extend the extra $600 in unemployment benefits through January. Republicans say that with the extra money, some people are making more on unemployment than they would by working.
Brancaccio: Is there room for compromise here?
Marshall-Genzer: Possibly. Some Democrats say the extra $600 payments should be tied to the unemployment rate, so they’d only continue as long as unemployment remained high. And, Secretary Scalia mentioned the possibility of bonuses for people who return to work.
COVID-19 Economy FAQs
What’s the latest on the extra COVID-19 unemployment benefits?
As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.
With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?
The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.
Which businesses got Paycheck Protection Program loans?
The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.
Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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