The administration of President Joe Biden will not be extending the enhanced weekly $300 unemployment benefits that are scheduled to expire on September 6.

Instead, the Biden administration is urging states that want to continue the extra payments to use their share of the COVID rescue funds, according to a USA Today report.

Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh co-wrote a letter to lawmakers on Thursday and said that the temporary unemployment benefits will expire on September 6 as planned.

According to the two officials, the benefit boost has always been planned to be temporary. However, they noted that the president believes that the pandemic shows serious problems with the current unemployment system that requires immediate reform.

The officials said Joe Biden is calling on Congress to address the issue as part of the budget reconciliation process, CBS News reported.

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Unemployment Benefits 

The enhanced benefits were created to help Americans who lost jobs amid the pandemic. It was implemented in the federal CARES Act under former President Donald Trump last year.

The boost was originally $600, but it was cut in half and extended to September 6. The unemployment rate remains well above the national average in California, New York, and Nevada, the New York Times reported.

The boost has helped Americans to have their spending power as the nation recovers from the session. However, the benefit boost had problems as well. Some business owners and Republican owners blamed it on the issues in filing jobs that other employers face.

The Department of Labor will be ready to assist states that want to utilize the existing unemployment insurance infrastructure for enhanced benefits, according to the Biden administration.

As an aid to Americans to find jobs, the Treasury Department announced an additional $47 million in new CAREER grants.

Unemployment in the U.S.

For four consecutive weeks, initial claims for unemployment benefits had dropped. Claims for unemployment assistance reportedly hit a low of 348,000 for the week ending August 14.

Aljazeera reported that it was the lowest level since March 20, when the pandemic first closed many businesses and sent workers home. The Department of Labor said it was a sign that the nation's labor market is picking up despite the surge of COVID cases in some states.

Joe Biden and his economic team had argued that strong support continues to be necessary to ensure that the U.S. economy makes a full recovery.

The Federal Reserve has said that it will continue to support the economy until it meets its goal of maximum employment, with an inflation rate of two percent in the longer term.

Despite the data's report, the highly contagious Delta variant makes this fall remains uncertain. The Federal Open Market Committee said in a statement that the path of the economy continues to depend on the trajectory of the virus.

The statement further noted that progress on vaccinations would likely continue to reduce the effects of the pandemic on the economy.

As the unemployment benefits near the deadline, around 7.5 million Americans will be left without them. Some will have to see smaller weekly unemployment payments as a result.

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This article is owned by Latin Post

Written by: Mary Webber

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