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Politics The GOP will reportedly seek to reduce coronavirus unemployment benefits to $200 a week until states can implement a 70% wage replacement scheme for jobless people

20:18  27 july  2020
20:18  27 july  2020 Source:   businessinsider.com

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Mitch McConnell wearing a suit and tie: Republicans leaders say they'll soon unveil details for the next coronavirus stimulus. Ting Shen/Xinhua via Getty) (Xinhua/ via Getty Images © Ting Shen/Xinhua via Getty) (Xinhua/ via Getty Images Republicans leaders say they'll soon unveil details for the next coronavirus stimulus. Ting Shen/Xinhua via Getty) (Xinhua/ via Getty Images
  • The GOP will propose scaling back the $600 federal boost to unemployment benefits to $200 each week until state systems are capable of implementing a wage replacement scheme amounting to 70% of a jobless person's past wages.
  • Republicans will push for a two-month transition period for state agencies, The Washington Post first reported.
  • Democrats are seeking to extend the $600 federal supplement through January, setting the stage for a fierce clash with Republicans on unemployment benefits.
  • Visit Business Insider's homepage for more stories.

Senate Republicans will propose scaling back the $600 federal boost to unemployment benefits to $200 each week until state systems are able to implement a 70% wage replacement scheme for unemployed people.

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The Washington Post first reported the development, citing two sources granted anonymity to share elements of the forthcoming plan set to be released later on Monday. It's expected to form part of the GOP's $1 trillion stimulus bill.

The newspaper reported that Republicans want the flat bonus to be in place for two months, the time frame in which they expect state unemployment offices will be able to set up the wage replacement proposal. If implemented, it would distribute a lower amount of federal payments for jobless Americans.

Read more: The Trump administration and Senate Republicans are quibbling over the next coronavirus stimulus. Here's what's in store for the final bill, including more checks, loans for small businesses, and $100 billion to reopen schools.

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The plan will likely encounter staunch opposition from Democrats. They're seeking to extend the $600 federal supplement through January 2021, arguing that the economy remains in weak health and unemployment is high. The jobless rate currently stands at 11.1%.

Republicans long assailed the $600 federal bonus. They say it disincentivizes people from returning to work since a substantial figure of unemployed people can earn more from the government compared to their previous jobs.

In March, Congress approved the $600 bonus, and it's slated to expire at the end of the month with final enhanced payments in all 50 states sent on Saturday and Sunday.

Experts, however, say that state unemployment systems may struggle to implement the wage replacement proposal given their antiquated systems and large backlog of unprocessed claims. The National Association of State Workforce Agencies warned Congress it could take states anywhere between eight to 20 weeks to transition to the method, NPR reported.

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Read the original article on Business Insider

Video: 25 million Americans at risk of losing expiring unemployment benefits (ABC News)

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usr: 4
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