The total amount of unemployment benefit remains uncertain and would fall $300 from $400. President Donald J. Trump announced last weekend that it would be smaller than that initial suggestion. At the same time, the distribution of the money, and the number of workers who will benefit remains unclear.

The Labor Department said that the new applications for state unemployment benefits fall below one million since the pandemic took hold in March. The filings remain high, and other measures show that the economy is losing its momentum. 

$400 Unemployment is Only $300 and You Won't Receive It Sooner
(Photo : Jp Valery)
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According to the NY Times, the proposed $600-a-week federal supplement to unemployment benefits to address the pandemic stopped at the end of July. The purpose of the unemployment benefits in July was to pull away from the support for nearly 30 million Americans and the broader economy. 

Trump wants to implement a $300 weekly supplement to state unemployment benefits known as the "Lost Wages Assistance" program. The program would have cut 50% from the $600 level before expiring. The administration  

The proposal has cut 50% of the $600 level before terminating at the end of July. According to Business Insider, after setting off a backlash from cash-strapped states, the administration reduced it from $400 and is unable to chip in an extra $100 benefit as laid out in a recent memorandum.

Most of the states are still checking whether they can set up the new benefit program or not. But the memorandum from the White House has raised concerns about the potential exclusion of some low-earners. The memo contains a provision stating that the unemployed people will only qualify for federal aid if they get at least $100 in state benefits every week.

On the other hand, the unemployed must already be receiving government help to be eligible for extra government help. Workers such as part-time, low-wage, and gig-economy workers previously collected $600 federal benefit that expired in late July. 

"The people I'm most worried about are those who are doing their best to get back to work. They're getting a partial benefit, and that benefit will fluctuate weekly and drop below $100," a senior policy analyst at the National Unemployment Project, Michele Evermore, told Business Insider.

Low-earners are most at risk of not getting unemployment boost

Eliza Forsythe, a labor economist, and professor at the University of Illinois estimated that 6% of the unemployed people on state unemployment boost receive less than $100 a week in benefits. Forsythe said that they were disproportionately women. "They're people who were already low-earners before they lost their job," Forsythe told Business Insider.

However, Forsythe said that the overall figure is higher since her projection doesn't include people in federal programs like the Pandemic Unemployment Assistance (PUA). PUA was set up for independent contractors and gig workers who are usually not eligible for state benefits.

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