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Trump Issues Order to Extend Federal Unemployment Benefits, May Prompt Negotiations with Congress

President Trump signed a series of orders on Saturday, including an order to address the extension of additional unemployment insurance (UI) payments. The UI order seeks to provide authority for an additional $400 per week through the end of the year under a new program that would be funded under a federal/state match agreement and use state UI agencies and unemployment trust fund accounts as the vehicle for payment and reimbursement.

The order extends the enhanced unemployment benefits that expired about two weeks ago. The benefits will be lowered from $600 to $400 per week, with states required to cover 25 percent of the cost.

The order appears to be a stop gap measure intended to bring Congress back to the table on unemployment and other phase four relief.  The order  provides executive authority until Congress acts to enact a supplemental federal unemployment compensation, or similar compensation, for individuals unemployed or underemployed due to COVID-19.

The President has directed the Federal Emergency Management Agency (FEMA) to assist in providing benefits from the Department of Homeland Security’s Disaster Relief Fund (DRF), which has over $70 billion available.  The order also directs state governments to use their Coronavirus Relief Fund (CRF) allocation, to bring continued financial relief to Americans who are suffering from unemployment due to the COVID-19 outbreak.

If Congress does not act, the program ends if the balance in the Department of Homeland Security’s Disaster Relief Fund (DRF) reaches $25 billion or for weeks of unemployment ending not later than December 6, 2020. (Estimates are that the DRF balance will stay above $25 billion for approximately five weeks.)  The order authorizes the program to begin retroactively to the week ending August 1, 2020.

Under the order, eligible claimants need to, for the week lost wages assistance is sought, receive at least $100 per week of any of the following benefits:

  1. Unemployment compensation, including Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex‑Service members (UCX);
  2. Pandemic Emergency Unemployment Compensation (PEUC);
  3. Pandemic Unemployment Assistance (PUA);
  4. Extended Benefits (EB);
  5. Short-Time Compensation (STC);
  6. Trade Readjustment Allowance (TRA); or
  7. Payments under the Self-Employment Assistant (SEA) program.\

We are closely monitoring this situation and will keep you posted on any significant developments.  If you are a member of the Michigan Chamber and have questions about the order, please contact Wendy Block at wblock@michamber.com.

President Trump signed a series of orders on Saturday, including an order to address the extension of additional unemployment insurance (UI) payments. The UI order seeks to provide authority for an additional $400 per week through the end of the year under a new program that would be funded under a federal/state match agreement and use state UI agencies and unemployment trust fund accounts as the vehicle for payment and reimbursement.

The order extends the enhanced unemployment benefits that expired about two weeks ago. The benefits will be lowered from $600 to $400 per week, with states required to cover 25 percent of the cost.

The order appears to be a stop gap measure intended to bring Congress back to the table on unemployment and other phase four relief.  The order  provides executive authority until Congress acts to enact a supplemental federal unemployment compensation, or similar compensation, for individuals unemployed or underemployed due to COVID-19.

The President has directed the Federal Emergency Management Agency (FEMA) to assist in providing benefits from the Department of Homeland Security’s Disaster Relief Fund (DRF), which has over $70 billion available.  The order also directs state governments to use their Coronavirus Relief Fund (CRF) allocation, to bring continued financial relief to Americans who are suffering from unemployment due to the COVID-19 outbreak.

If Congress does not act, the program ends if the balance in the Department of Homeland Security’s Disaster Relief Fund (DRF) reaches $25 billion or for weeks of unemployment ending not later than December 6, 2020. (Estimates are that the DRF balance will stay above $25 billion for approximately five weeks.)  The order authorizes the program to begin retroactively to the week ending August 1, 2020.

Under the order, eligible claimants need to, for the week lost wages assistance is sought, receive at least $100 per week of any of the following benefits:

  1. Unemployment compensation, including Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex‑Service members (UCX);
  2. Pandemic Emergency Unemployment Compensation (PEUC);
  3. Pandemic Unemployment Assistance (PUA);
  4. Extended Benefits (EB);
  5. Short-Time Compensation (STC);
  6. Trade Readjustment Allowance (TRA); or
  7. Payments under the Self-Employment Assistant (SEA) program.\

We are closely monitoring this situation and will keep you posted on any significant developments.  If you are a member of the Michigan Chamber and have questions about the order, please contact Wendy Block at wblock@michamber.com.