Unemployment benefits: which states will put up the extra $100 to make it $400?

Under President Donald Trump’s memorandum approved 8 August states were not required to put an extra $100 to secure federal funds to pay $300 unemployment benefits, with the American economy reeling from the effects of the coronavirus pandemic. Many states made it clear they will not put in any more money because they ran out of funds after the $600 weekly unemployment benefits ran out on 31 July under the CARES Act.

Amid the Covid-19 crisis roughly 28 million Americans are unemployed and are eagerly awaiting for unemployment benefits to be expanded until the end of the year. Only Montana, West Virginia and Kentucky confirmed that they will give an extra $100 on top of the $300 that they were going to receive from FEMA to help the people during the pandemic.

Other states can’t afford the extra $100 a week

According to the Center on Budget and Policy Priorities state budget shortfalls are projected to reach $555 billion during the outbreak and many states made it clear that it would be impossible for them to fund an extra $100 in weekly unemployment benefits.

“States may count funds that are already used to provide regular state UI payments toward the state match, if they choose to do so, eligible claimants will receive a Lost Wages Assistance (LWA) payment of $300 from the Federal Government in addition to their weekly benefit amount,” stated the letter from the LWA.

South Dakota, meanwhile, became the first state to completely decline the $300 payment from the federal government with Gov. Noem (Republican) saying that the state didn’t need it, “South Dakota’s economy, having never shut down, has recovered nearly 80% of our job losses,” she said.