Due to the pandemic, more than 40 million Americans found themselves without income. After this week, more than 25 million people will be affected once the $600 a week Federal Pandemic Unemployment Compensation benefit expires.
“It will expose more of the real pain of mass unemployment, just as many states are reimposing shutdowns,” CNN reported.
On top of this, thousands are still getting laid off regularly. Many are worried that ending this program will halt economic recovery.
“These emergency unemployment benefits have been propping up families and propping up the economy now for several months,” Kali Grant, a senior policy analyst, said. “Ending the benefits prematurely will really set back any economic recovery that may have been on the way.”
According to CNN, lawmakers are already working on the next economic stimulus package, but it may not come anytime soon.
“The provision was controversial from the start,” CNN reported. “Mainly because the $600 boost, when added to the state benefits, is more than what two-thirds of workers made on the job.”
Non-working Americans will still be receiving state unemployment benefits, but this can not be a permanent solution.
Senate Republicans are against extending the benefit as it “creates a disincentive for people to return to work.” While Democrats want to extend the program into 2021.
“The right thing to do for families and the economy is extend supercharged unemployment benefits,” said Oregon Sen. Ron Wyden (Democrat). “They have unquestionably kept the economy afloat.”