WASHINGTON–Two senators have introduced legislation that would tie enhanced unemployment benefits to joblessness levels in each state.
Senate Minority Leader Chuck Schumer (D-NY) and Sen. Ron Wyden (D-OR) are co-sponsoring the bill, under which the additional $600 a week that jobless workers have been receiving during this economic crisis would be phased out in stages as each state as its unemployment rate drops below 11%.
According to the New York Times, each percentage point drop in the rate, based on a three-month average, would correspond to a $100 decrease in enhanced weekly benefits, meaning at least some additional benefits would be available in a given state until its unemployment rate drops below 6%.
The legislation would also allow unemployed Americans to continue getting 13 weeks of extended benefits, provided under the CARES Act, until March 27 of 2021. After that, the extension would be phased out as a state’s unemployment rate drops from 8.5% to 5.5%, with even more weeks available in states where unemployment is above 8.5%, the Times reported.
The bill would also extend unemployment benefits designed for gig workers and others who are not eligible for traditional unemployment insurance until March 2021, after which those benefits would also be tied to states’ unemployment levels.