The U.S. Congress Joint Economic Committee (JEC) recently issued a brief that found early cancellation of enhanced Unemployment Insurance (UI) provisions possess the potential to impact local economies nationwide by more than $13 billion.
JEC Chairman Don Beyer (D-VA) released a brief on the matter on the panel’s behalf, detailing 24 states have made plans to end the emergency UI provisions in the CARES Act, Pandemic Unemployment Assistance, and Pandemic Emergency Unemployment Compensation more than seven weeks before the September 6 statutory expiration of the program.
Additionally, per lawmakers, 20 states are slated to end all three programs, while four will only end the $300 per week unemployment compensation boost.
“The enhanced Unemployment Insurance provided through the CARES Act ensured that tens of millions of Americans were still able to put food on the table, prescriptions in the medicine cabinet and keep the lights on during one of the worst economic recessions in our nation’s history,” Beyer said. “Many of those Americans still remain deeply uncertain about their economic futures as we still remain more than 8 million jobs short of where we were pre-pandemic.”
Beyer said there is little evidence that enhanced UI is holding back employment. He added that if states proceed with plans to end the programs, the actions will hinder the nation’s economic recovery.