Expanded unemployment insurance ends with tens of millions still out of work

 

On Friday, expanded federal unemployment insurance expired, putting an end to the $600-per-week benefit that has kept many Americans afloat through the historic economic crisis brought on by the coronavirus pandemic. [WSJ / Andrew Duehren and Te-Ping Chen] That expiration comes after a week of negotiations on a new coronavirus relief package that could renew unemployment benefits, with little headway apparent. As things stand, dueling proposals by the House and Senate are about $2 trillion apart. [Washington Post / Erica Werner, Jeff Stein, Seung Min Kim, and Rachael Bade] It’s unclear when more unemployment relief might be coming. Congress is traditionally out of session for a district work period in August, though House Majority Leader Steny Hoyer has indicated that he expects the chamber to return at some point next month to vote. [Twitter / Manu Raju] There are quite a few sticking points left to resolve before anything can get done. Among other issues, Republicans want to slash expanded unemployment insurance to just $800 a month rather than $600 a week, and they want liability protections for businesses to make the cut. [NYT / Emily Cochrane] Such protections would in many cases shield employers from lawsuits if their employees contract Covid-19 upon returning to work. But while Senate Majority Leader Mitch McConnell has taken a hard line on their inclusion, the White House position is less rigid. [Washington Post / Jeff Stein and Erica Werner] Negotiators are also at odds over how long renewed unemployment insurance should last: Republicans have pitched an expiration date of December 31, but Democrats hope to keep it in place into 2021. [CNN / Tami Luhby, Kelly Mena, and Katie Lobosco] Both parties, though, have expressed interest in bringing back one-time $1,200 direct payments to Americans, and even in expanding those payments to include adult dependents. The GOP plan calls for $500 checks to all dependents, and the Democratic plan for $1,200 checks. [Vox / Katelyn Burns] All signs point to the US economy being in dire need of more stimulus. It had its single worst quarter on record between April and June, with GDP falling by 32.9 percent. [CNBC / Jacob Pramuk] And American workers still need help: As Vox’s Li Zhou writes, the jobs that Republicans want people to go back to just aren’t there as the coronavirus outbreak continues unchecked, and about 11.9 million people could be facing permanent unemployment. [Vox / Li Zhou]