Trump's $400 Unemployment Extension - How It Works

Important Highlights:

• Some unemployed Americans will receive $300 per week instead of $400 per week because of state budgetary constraints.

• Low income earners who do not qualify for at least $100 per week from their state in unemployment funds will likely be ineligible for the supplemental benefits of $400 per week.

What Happened:

• Trump signed several Executive Orders last Saturday including one that would partially restore supplemental unemployment benefits of $400 per week for people laid off during the Coronavirus epidemic. In the. new order, $100 would come from the state and $300 would come from the federal government.

• Some states have already expressed concern over paying the additional $100 per week saying they are unable to foot the bill due to budgetary constraints caused by the pandemic.

What This Means:

• White House Economic Adviser Kudlow explained that if states were unable to foot their part of the bill they could count what they already pay in unemployment towards the $100.

• Therefore, anyone located in a state unable to pay the additional $100 per week could receive $300 per week instead of $400 per week.

• It also means that low income earners who do not qualify for at least $100 per week from their state in unemployment funds would likely be ineligible for the supplemental benefits.

• $44 billion was allocated to cover the additional benefits using money from the Disaster Relief Fund. The benefits will last until the money runs out or until December 6th.