State Unemployment Insurance Systems Are Held Together With “Chewing Gum and Duct Tape”

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Going from a flat $600 per week for unemployed workers to a more complicated calculation based on income will break the already-fragile state systems.

Photo illustration by Slate. Photo by pic_studio/iStock/Getty Images Plus and Samohin/iStock/Getty Images Plus.

The COVID-19 pandemic has sparked an unprecedented economic crisis, during which more than 30 million Americans have relied on state and federal unemployment benefits as a lifeline. While states have delivered hundreds of billions of dollars in aid to the jobless, almost everyone would admit that the process was something like a catamaran sailing during a hurricane.

submitted by mid-June were paid by June 30—better than in the spring, but still far below historical averages. While some of these claims were made by workers that may be eventually declared ineligible, for many more, it’s been a purgatory of pending status. In usual times, states decide 80 percent of disputed claims within three weeks, but in May, less than one-quarter of cases were decided in a matter of weeks.

Last week, the HEALS Act presented by Senate Republicans proposed that states dramatically restructure the largest, and most successful, aspect of the CARES Act: pandemic unemployment compensation. They want to take it from a flat $600 per week to a capped benefit equal to the difference between state benefits and 70 percent wage replacement.

 

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