More than 18 million Americans are now collecting unemployment benefits, including $300 weekly supplemental unemployment payments that began rolling out in January.
Those supplemental federal benefits are set to expire in mid-March. But when they do, those who are still collecting unemployment may actually see their benefits climb.
On Friday, the House of Representatives released the text of the 591-page “American Rescue Plan Act of 2021.” Among its key provisions: an increase in those supplemental weekly jobless benefits to $400 a week, extended until August 29.
The House is expected take up the legislation next week, with Senate action to follow. How likely is it that Congress will pass the additional unemployment benefits? And if the legislation passes, will it come in time to avoid an interruption in federal benefits? Here’s an overview of where the proposals stand.
Senate Majority Leader Chuck Schumer says the Senate’s on track to pass additional stimulus relief … [+]
CQ-Roll Call, Inc via Getty Images
What unemployment relief does the new stimulus package include?
The House bill would increase the supplemental federal weekly jobless benefits to $400 a week, and extend those payments until August 29.
It would also extend two key pandemic unemployment programs through August 29: the Pandemic Unemployment Assistance (PUA) and the Pandemic Emergency Unemployment Compensation (PEUC) programs.
The bill would lengthen the duration of the PUA program to up to 74 weeks—to nearly a year and a half—from 50 weeks, and the PEUC program to 48 weeks, from 24 weeks.
The first program provides benefits to freelancers, gig workers, and others who are working on contract, while the PEUC program essentially extends the duration of payments for those who qualify for traditional state unemployment.
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The President’s plan had called for continuing the benefits through the end of September. While the House bill falls short of that, it would extend the federal unemployment programs for five and a half months beyond the current expiration date in mid-March.
The bill also includes a new round of $1,400 stimulus checks. Combined with the $600 stimulus payments already approved in December, that would make good on President Biden’s promise of $2,000 in stimulus payments for most Americans. (Individuals with reported earnings below $75,000 in their most recent tax filing would get the full $1,400, and married couples earning less than $150,000 would be eligible for $2,800.)
Is the extension and increase in unemployment benefits likely to pass?
On Friday, Senate Majority Leader Charles E. Schumer (D-N.Y.) pledged that Congress would approve the legislation and send it to the president to sign by mid-March, when provisions in December’s $900 billion relief package begin running out.
“The Senate is on track to send a robust $1.9 trillion package to the president’s desk before the March 14 expiration of Unemployment Insurance benefits. We will meet this deadline,” Schumer wrote to colleagues.
The House is expected to take up the bill next week, pass it and send it to the Senate as early as the end of the week. That would allow the Senate at least a couple of weeks to review it, make any changes and send the legislation back to the House for final passage ahead of the March 14 deadline.
President Biden and Democratic leaders have said they’d like to get bipartisan support for the bill. But they have pursued a process that would allow a smaller majority to pass the legislation.
Typically, the Senate has a 60-vote threshold to pass major legislation, but the so-called budget reconciliation process allows lawmakers to pass comprehensive legislation with just 51 votes. (Budget reconciliation was created under the Congressional Budget Act of 1974 and allows the use of reconciliation for legislation that changes spending, revenues, and the federal debt limit.)
The Senate and House of Representatives each passed budget resolutions early this month, starting the reconciliation process.
One sticking point in the legislation is a proposed federal minimum wage increase to $15 an hour over the next few years. Republicans have generally opposed including that–as have two moderate Senate Democrats. So some compromises may need to be made to try and get unanimous party support.
Because the Senate is divided 50-50 between Democrats and Republicans, Democrats can’t afford to lose a single vote if they proceed without GOP support under the budget reconciliation process. With unanimous support within the party, they could pass the legislation with Vice President Kamala Harris breaking the tie.
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