As the unemployment bonuses included as part of the CARES Act are set to expire at the end of July, millions of Americans will lose up to 90% of their income during the worst economic crisis in generations.
Before the crisis, it was already extremely difficult to afford basic necessities like rent. Now that over 30 million Americans are unemployed, loss of that bonus and temporary laws preventing evictions means millions of Americans are facing homelessness. Will the Trump Administration let this happen?
As the COVID-19 crisis continues to rage, businesses are again closing their doors. That means unemployment is likely to continue.
Democrats in the House have already passed the HEROES Act, which provides more stimulus and expands unemployment bonuses, and Senators like Kamala Harris have put forth bills like the RELIEF Act, which would extend eviction protection for a year.
Republicans have been hesitant to compromise, but that may be changing as COVID-19 surges throughout Republican-controlled states like Texas and Georgia.
“Trump administration officials have begun opening the door to accepting a narrower version of what Congress previously approved,” reports the Washington Post.
“One potential compromise discussed by Republican lawmakers would involve cutting the unemployment benefit” from $600 to a lower amount, and limiting enrollment to people who made less than $40,000 per year before the pandemic.
Republicans in Congress have long argued that getting people to go back to work, not extending crisis support, is the way forward. They worry a too-generous stimulus would discourage people from going back to work - but that might not be the main reason people are hesitant.
Republicans are promoting “back-to-work” bonuses instead of unemployment bonuses, says CNBC - but economists argue that “the math doesn’t add up.” There just aren’t enough jobs to go around, even if everyone did want to go back to work - and it’s not clear that they do.
Many workers are afraid to go back to work, especially considering the Trump Administration has refused to require that employers protect their workers from COVID-19.
For many workers, the choice is between staying safe at home - and losing unemployment benefits, which could mean being evicted - or risking one’s life by going back to work during a dangerous, uncontrolled pandemic.
Republicans have indicated that they will put something on the table by the end of July. Whether it will contain unemployment extensions, direct stimulus payments, back-to-work bonuses, or potentially even eviction protections, is still unclear.
As Trump faces low polling this election year, largely due to his handling of the pandemic, and Republican governors see their ratings slipping as well, especially in states where COVID-19 is surging, they may be more willing to compromise and provide relief to struggling Americans - but only time will tell.