News Flash

Home

Posted on: August 14, 2020

President’s Supplemental Unemployment Compensation Plan Poses Problems

As reported in our Monday Daily Update, President Trump took action last weekend, to address a few aspects of the economic crisis, caused by the Coronavirus. His Memorandum on Authorizing the Other Needs Assistance Program for Major Disaster Declarations Related to Coronavirus Disease 2019 looked to address the July expiration of the $600 a week federal supplement to state unemployment benefits. It would divert $44 billion of FEMA Disaster Relief Funding to a program that could add up $400 a week to state unemployment benefits. Federal FEMA funding would cover $300 of the total if States agree to provide the other $100. The memo orders the aid to continue through December 6, or until funding is exhausted.

States may provide claimants a lost wages supplement of up to $400, composed of a $300 federal contribution from the Disaster Relief Fund (DRF) and an additional amount up to $100 from state funds. The state-funded portion may be sourced from the Coronavirus Aid Relief (CRF) and Economic Security Fund allocation. The total lost wages supplemental payment may not exceed $400. States may instead provide claimants the lost wages supplement of $300 paid entirely from the $300 federal contribution and satisfy the match, with no additional state payout, by leveraging existing state funding used to pay regular state unemployment benefits. In this case, the state must demonstrate at the aggregate level that the total of its state-funded unemployment benefits to claimants receiving the lost wages supplement were at least 25% of the total lost wages assistance benefits paid in conjunction with all of the unemployment programs.

According to the U.S. Bureau of Labor Statistics, there were 750,000 unemployed New Jerseyans, at the end of June. At $100, each, it would cost the State $75 million, each week, to provide the full $400 supplement.

Further, most of the CRF and Economic Security Funds have already been allocated or obligated by the States for other purposes. Use of the funding to offset the State portion of the unemployment benefit may reduce the amount of money states have promised to local governments.

Using DRF during hurricane season could also severely limit the ability of FEMA to respond to and provide assistance to local governments that may be impacted by large scale disasters. FEMA also recently released a notice of funding opportunity for the new Building Resilient Infrastructures and Communities (BRIC) grant program to states, local communities, tribes and territories (SLTTs) for pre-disaster mitigation activities. However, the use of the DRF, which funds the BRIC grants, for unemployment benefits could also reduce the amount of money that is available to state and local governments for disaster mitigation.

It is important that Congress act immediately to extend the unemployment benefits in the next relief package and that the federal government does not siphon funding from the critical DRF program to supplement unemployment benefits.

Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.

Facebook Twitter Email

Other News in Home

State FY 22 Budget Signed

Posted on: June 30, 2021

2022 Budget on Gov. Murphy's Desk

Posted on: June 28, 2021

State FY 22 Budget Introduced

Posted on: June 24, 2021

S-1 Passes Senate

Posted on: June 14, 2021

S-1 Passes Senate

Posted on: June 14, 2021

DLGS Posts Portal for ARP Funding

Posted on: June 14, 2021

Act Now: Resolution on Bag Ban

Posted on: May 18, 2021

Shuttered Venue Operator Grants

Posted on: April 30, 2021

New Jersey SFY 2022 Budget Update

Posted on: April 30, 2021

Week of April 19: COVID-19 Update

Posted on: April 27, 2021

Week of March 29 COVID-19 Update

Posted on: April 1, 2021

Cannabis Legalization Deadlines

Posted on: March 26, 2021

Local Part PERS Legislation Advances

Posted on: March 26, 2021

Week of March 22: COVID-19 Update

Posted on: March 26, 2021

Legislative Preview: Week of March 15

Posted on: March 15, 2021

Cannabis Briefing March 18

Posted on: March 15, 2021

Week of March 8: COVID Update

Posted on: March 15, 2021

Legislative Preview: Week of March 8

Posted on: March 9, 2021

Wear Your Pearls for WIMG Movie Night

Posted on: March 10, 2021

American Rescue Plan Overview Webinar

Posted on: March 10, 2021

Week of Feb. 22: COVID-19 Weekly Update

Posted on: February 26, 2021

Feb. 26, 2022 Cannabis Update

Posted on: February 26, 2021

FY 2021 State Budget-Municipal Interest

Posted on: February 24, 2021

Legislature Preview: Week of February 22

Posted on: February 22, 2021

Gov. Murphy Signs Legalization Legislation

Posted on: February 22, 2021

LEAP Challenge Grant Deadline Approaching

Posted on: February 16, 2021

Expanded Earned Income Tax Credit Program

Posted on: February 16, 2021

Amended Shared Service Bill S-1 Advances

Posted on: February 16, 2021

Week of February 8: COVID-19 Update

Posted on: February 16, 2021

Congressional Activity on SALT Deduction

Posted on: February 1, 2021

Marijuana Legalization Update

Posted on: February 1, 2021

Week of January 24: Covid-19 Update

Posted on: February 1, 2021

Week of January 18: COVID-19 Update

Posted on: January 22, 2021

COVID-19 Update: Week of January 4

Posted on: January 11, 2021

Governor Signs Tax Incentive Legislation

Posted on: January 11, 2021

Cannabis Clean Up Legislation Held

Posted on: January 11, 2021

Larger Stimulus Checks Unlikely

Posted on: January 4, 2021

Federal Update and Further Stimulus

Posted on: December 30, 2020

COVID Relief & Omnibus Bill Passed

Posted on: December 28, 2020

Week of December 21 COVID-19 Update

Posted on: December 28, 2020

Week of December 14: COVID-19 Update

Posted on: December 18, 2020

Senate Passes PFRS 20 and Out Legislation

Posted on: December 18, 2020

Tax Incentive Legislation Moving Quickly

Posted on: December 18, 2020

Covid-19 Update: Week of December 6

Posted on: December 14, 2020

Cannabis Legislation Advancing

Posted on: December 14, 2020

Small Cell Regulation Bill Advances

Posted on: December 14, 2020

LFN Issued on UCC Enforcement

Posted on: December 10, 2020

AG Issues Marijuana Charge Guidance

Posted on: December 10, 2020

Law Requires Use of Body Cameras

Posted on: December 2, 2020

Gov. Murphy Signs Plastic Ban into Law

Posted on: November 11, 2020

2019 Senior Freeze Deadline Extended

Posted on: November 2, 2020

Hospital Propety Tax Bill Held from Vote

Posted on: November 2, 2020

Vegetation Management Bill Advances

Posted on: September 21, 2020

Hospital Property Tax Bill Advances

Posted on: September 21, 2020

Governor Takes Action on Bills

Posted on: September 21, 2020

MIllioniares' Tax to Bolster State Budget

Posted on: September 21, 2020

State Budget Deliberations Begin

Posted on: September 11, 2020

Final NJ Census Push in Full Swing

Posted on: September 9, 2020

Census 2020- Time Is Running Out

Posted on: September 8, 2020

Proposed Budget Holds ETR/CMPTRA Level

Posted on: August 25, 2020

Week of August 17: COVID-19 Update

Posted on: August 25, 2020

Local Aid Crucial for Economic Recovery

Posted on: August 25, 2020

Week of August 10: COVID-19 Update

Posted on: August 14, 2020

Time is Running Out for the 2020 Census

Posted on: August 14, 2020

Week of August 2: COVID-19 Update

Posted on: August 9, 2020

COVID-19 Research Volunteers Needed

Posted on: August 6, 2020

Storm Update from NJBPU

Posted on: August 5, 2020

Week of July 27: COVID-19 Update

Posted on: August 5, 2020

Gov. Takes Action on Legislation

Posted on: May 18, 2021