Catherwood LibraryILR School

Congress is endeavoring to find compromise on a new economic rescue plan that balances the White House's desire to encourage people to return to work with House Democrats who argue that lowering the federal unemployment benefit will bring devastation to many unemployed low-income workers who may be unable to pay for basic necessities such as housing, food and utilities. The White House is proposing to replace the current $600 benefit with a payment that would would combine with a state unemployment benefit to replace 70% of recipients’ previous income. House Democrats had already approved legislation that would extend the current $600 benefit through January, but Republicans are concerned that workers will be reluctant to return to work given that research shows that two-thirds of the unemployed are making more than than they earned at their jobs. Economists and other researchers say that the protracted battle, along with the likelihood that state unemployment offices will struggle to implement the White House proposal due to antiquated systems, is not helping a weak economy that still has an 11.1% unemployment rate and hiring that has slowed due to increased Covid-19 cases.