Distribution of Additional $300 Unemployment Checks Ends in 10 States

By M.G. Alison. Sep 23 2020, 05:55 AM EDT

The distribution of the additional $300 unemployment checks has ended in at least 10 states as federal funding for it has dried up.

Among the states who made the announcement were Texas, Utah, Iowa, Arizona, Alabama, Montana, Tennessee, Louisiana, Oklahoma and Missouri.

Unless a legislation for another stimulus package is passed, or President Donald Trump would be able to bypass the Congress once again for additional funding, the next months for the unemployed workers will be bleak.

With six months into the COVID-19 pandemic, there are about 30 million people who are still collecting jobless benefits.

Economics assistant professor Ioana Marinescu of the University of Pennsylvania said the additional $300 unemployment checks were just a stopgap measure and would not last for long. However, it was better than nothing.

The additional $300 unemployment checks were offered by the Lost Wages Assistance Program (LWAP), which was created by a memorandum signed by Trump when it became clear that the Republicans and the Democrats will not be able to reach a deal on a second stimulus package.

Trump signed the memorandum on August 8 after the $600 weekly boost to the unemployment benefit, which was part of the CARES Act, ran out near the end of July. The President had allocated $44 billion from the Federal Emergency Management Agency (FEMA) for the LWAP.

The additional $300 unemployment checks were to be given for six weeks, between weeks ending August 1 until September 5, for a lump sum of $1,800. It is given on top of the regular unemployment benefits provided at the state level.

Earlier this month, the nonpartisan Committee for a Responsible Federal Budget had said that it was expecting the federal budget to last only until the week ending on August 29.

FEMA has approved a total of 48 states for the LWAP, and Arizona was the first to send out the enhanced checks on August 17. Nevada applied for the program on September 2 and is awaiting approval.

While the 10 states have already disbursed their six-week allocation of checks, other states are still in the process of distributing the additional $300 unemployment checks for those who are eligible to receive it.

Both Republicans and Democrats have said they are willing to continue negotiations for another COVID-19 relief aid. However, these are empty words as they continue to butt heads regarding passing a new legislation.

As both parties are locked up on that issue, another crisis has come up, which was caused by the death of Supreme Court Justice Ruth Bader Ginsburg. The Republicans and Democrats are once again at loggerheads as to the replacement of Ginsburg.

Trump wants to immediately fill the seat left by Ginsburg while the Republicans urge that it remain vacant until after the November 3 general election.

Without federal aid, either an extension of the additional $300 unemployment checks or another COVID-19 relief aid, the inequality exposed by the current economic downturn would deepen, said Marinescu.