President Trump has signed executive orders including one that will provide $400 in enhanced unemployment benefits to millions of out-of-work Americans. But there’s a catch.
This could create issues with the Stafford Disaster Relief and Emergency Assistance Act, which includes a program that provides assistance to people who don’t qualify for traditional unemployment, according to Michele Evermore, a senior policy analyst at the National Employment Law Project, a think tank that advocates for labor and employment legislation.
States can’t use their current unemployment insurance infrastructure to pay a benefit that isn’t authorized by Congress, according to Evermore. The language in the memorandum says that these benefits must be paid “in conjunction with the state's unemployment insurance system,” which means that states will have to set up a new way to add these payments to existing benefits, she says.
“It's a difficult proposition for states to implement in a short period of time," says Stettner."States had already struggled to get unemployment money in the hands of out-of-work Americans. This will disappoint workers. They think they’ll get that $400 next week, but they’re not.”
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