As reported by cnet,

President-elect Biden’s new plan would bring more money to those who need it. 

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Less than a week before his inauguration, President-elect Joe Biden announced his plans to help restore the economy Thursday. Called the American Rescue Plan, the package will include a third stimulus check, more weeks of unemployment benefits, an extension to the eviction moratorium, expansion of vaccines and more provisions to help struggling Americans. 

For unemployed workers, the American Rescue Plan would extend the benefits established in a $900 billion COVID-19 relief package passed in late December, which was an extension to the CARES Act that was signed into law last March. Biden calls his plan the first step in helping Americans recover financially. 

“During this pandemic, millions of Americans through no fault of their own, have lost the dignity and respect that comes with a job and paycheck,” Biden said Thursday when he revealed his plan. “Millions of Americans never thought they’d be out of work. Many of them couldn’t even envision the idea are facing eviction, waiting for hours in cars to feed their families as they drive up to a food bank.” 

Here’s everything you need to know about how Biden’s plan will help unemployed workers. 

What will Biden’s American Rescue Plan do for unemployed workers?

The president-elect’s $1.9 trillion COVID-19 relief package seeks to extend enhanced unemployment benefits until the end of September and increase the weekly federal bonus to $400 instead of the current $300. This is down from the $600 per week extended in the CARES Act, on top of unemployment checks issued by the state.

One additional change Biden wants with unemployment benefits is automated triggers, according to The Washington Post. When certain economic indicators change, such as the unemployment rate, the aid provided would change accordingly. This will allow the federal government to continue providing the amount of help as needed for unemployed workers without having to pass an additional package. 

Would the new $400 unemployment benefits be retroactive? 

So far, there is no indication that the unemployment payments will be retroactive. That could change once a bill makes its way through Congress, or it could be determined by the states. 

Rep. Alexandra Ocasio-Cortez, a Democrat from New York, told The Washington Post on Thursday that third stimulus checks should be $2,000 instead of the listed $1,400 and tweeted how unemployed payments should be retroactive. 

How long would the $400 extra unemployment insurance last?

Biden’s plan calls for the extended benefits to last until the end of September. It’s too early to determine when they would start, if his proposal were to become law. 

How many weeks of $300 bonus checks are left? 

The $900 billion COVID-19 relief package passed in December added 11 more weeks of enhanced unemployment benefits. This includes the $300 weekly checks, Pandemic Unemployment Assistance for gig workers and an extension to benefits provided by the state. The official expiration date for these benefits is March 14, but there is a phase-out period until April 5 since some recipients have yet to receive any payments from their states’ unemployment offices. 

What happens after the end of September? 

We won’t know the official expiration date of the Biden stimulus plan until it’s notated in the bill. However, as most states determine a person’s unemployment eligibility on Saturday of each week, the likely expiration date will be Sept. 25, 2021. 

Where benefits stand will depend on the state of the US economy. COVID-19 vaccines continue rolling out across the country, and it’s expected that by the summer, a large percentage of the population will be vaccinated. If the economy opens up then there is less of a need for enhanced unemployment, but some individuals will still be out of a job and an extension will likely be needed. 

Source link: cnet


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