California Could Create Separate $600 Unemployment Benefit

A reminder of the economic struggle around the country in Detroit, April 2, 2020. (Paul Sancya/AP)

California vouches to aid its residents if Congress does not extend the extra $600 in weekly benefits. State legislators are ready to step in and keep the same benefit afloat should it end up expiring for millions of unemployed people.

What We Know:

  • The $600 weekly benefit provided by the government in April, which is to expire this month, has already sent the final batch of checks to residents. If Congress fails to act and extend the unemployment help that has provided much-needed assistance to many people, it’s threatened to be cut to about $338 a week.
  • The coronavirus relief bill passed in the House back in May, but the majority Republican Senate has yet to push it forward. It would have extended the weekly checks through Jan. 31st. Instead, they proposed a new package late Monday that would reduce the aid down to a mere $200 a week.

Assembly Speaker Anthony Rendon said in a statement, “Millions of Californians are suffering in this economic downturn, and Republicans in Washington, D.C., don’t seem to care.”

  • On the other hand, Democratic legislative leaders revealed their own $100 billion stimulus plan Monday, which would extend the $600 a week as well. This would help ease the extensive damage left on the Californian economy so far, thanks to the coronavirus pandemic.
  • Other legislators state that if Congress happens to approve a smaller amount in the weekly benefit from what’s already been said, they would immediately counter to fill the void. The payments would also be generously extended to undocumented immigrants who are unemployed.
  • Several lawmakers praise the stimulus plan for its potential to suppress the economic recession and promote a solid increase in employment growth. They advise if the state does not act more aggressively, the pandemic’s long term effects could end up causing not harm than what’s already predicted.
  • Phil Ting, chairmen in the Assembly budget committee, was part of a group of legislators who helped craft the outline over the last four months. He fully believes that the state is doing everything in its power to help good people that rely on this money for rent and food.
  • The state will utilize more money borrowed from the federal trust fund, the same source they have already been using since March to give unemployment to the millions of Californians who quarantined in the spring before reopening.
  • Representatives for Governor Gavin Newsom have yet to comment on whether he would directly support the state in providing additional benefits, however, he did state on Friday that he’s counting on House Speaker Nancy Pelosi to gain more financial support from Congress.

Though the stimulus plan is still in progress, the basis of what’s already been laid out will help set the wheels in motion for negotiations with Newsom, but the clock is ticking to work out a solid deal. According to the LA Times, it’s possible that Newsom could call for a special session after the Legislature adjourns for the year on Aug. 31.