18 March 2020 – Funded states’ payment and processing of unemployment claims

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Wage and income support
Sectors Involved:
Level of Jurisdiction: Federal
Lead People/Agency:

Overview: The U.S. Congress provided $1 billion in funding to support states in the funding and administration of unemployment insurance as part of phase 2 legislation.

$500 million will go directly to all states for administrative costs and $500 million will go to states with high unemployment, where unemployment rates are 10 percent greater than those of the same time last year. The legislation provides that the federal government will cover 100 percent of unemployment insurance costs (rather than the usual 50 percent match) in these instances of high unemployment.

In addition, the Secretary of Labor will give states guidance in raising employer awareness of benefits to avoid layoffs. States receiving support must ease regulations such as work search requirements.
Full details here: https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/Families%20First%20summary.pdf