CARES Act: Unemployment Insurance Expansion

CARES Act: Unemployment Insurance Expansion

  • Helps those not eligible for regular unemployment insurance: Creates a new Pandemic Unemployment Assistance program to help those not traditionally eligible for UI, such as self-employed and independent contractors, like gig workers and Uber drivers, as well as those who are unable to work or telework as a result of the coronavirus public health emergency. Providers funding to reimburse nonprofits and government entities that are not part of the state unemployment system for 50% of the costs they incur through December 31, 2020, to pay unemployment benefits.
  • Provides an additional payment to each recipient - Provides additional $600/week payments to each UI or Pandemic Unemployment Assistance recipient for 4 months beginning April 1 through July 31, 2020.
  • Supports states who pay individuals quickly - Provides funding for the 1st week of unemployment for states to waive their traditional "waiting week" before benefits begin.
  • Allows for additional weeks of unemployment benefits when needed - Provides an additional 13 weeks of unemployment to help those who remain unemployed after weeks of state unemployment are exhausted.
  • Assists states in meeting critical staffing needs to get benefits out quickly - Provides states with temporary, limited flexibility to hire temporary staff or re-hire former staff to quickly process unemployment claims.
  • Helps states maintain and establish programs to prevent layoffs during a downturn - Provides funding to states to help them maintain short-time compensation programs to prevent layoffs, as well as expand these work-sharing programs in the future.

Dislocated Worker Grants:

DOL announced $100 million in emergency grants for the Displaced Workers Grant Program. States must apply for these grants to be able to provide disaster-relief employment and job training activities.

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