Reed Seeks to Expand $600-per-week Insurance

PROVIDENCE, R.I (WLNE) – With individuals facing dire unemployment challenges in the midst of the COVID-19 pandemic, Senator Reed is offering legislation to expand unemployment insurance through July.

According to Reed’s office, the ill would improve Unemployment Insurance Provisions in the CARES Act and continue to offer out of work Americans a $600-per-week booster beyond July 31st, through the end of the year.

Noting that more than 30 million Americans lost their job, Reed’s new legislation, the Strengthening UI for Coronavirus Impacted Workers and Students Act, would extend federal compensation for those who have exhausted their benefits.

Reed says that in the midst of a pandemic, Congress and the Trump Administration “can and should” do more to help improve public health, aid economic stability, and help effectively reopen the country’s economy.

“The economic pain and uncertainty people are feeling is real.  Bills are piling up and coronavirus has taken people’s steady paychecks.  Refusing to extend unemployment insurance in the midst of an ongoing pandemic could make a desperate situation worse for individuals and harm the economy.  Being jobless in these uncertain times and relying on unemployment is stressful enough.  If Congress arbitrarily cuts them off and tries to prematurely push them into unsafe work environments, it will cost families, businesses, and communities alike,” said Senator Reed.

The law clearly states that the benefits are only available for those who are eligible and that if an employer reopens and calls workers back to work and they refuse, then they can lose their UI eligibility.  Anyone found to be in violation of the rules may be forced to pay back all of the illicitly gained money, as well as a 30 percent penalty, and have limitations imposed on their ability to file for future unemployment assistance.  Reed also noted that UI is a direct form of economic stimulus for states because the cash distressed job seekers receive gets quickly spent and plowed right back into the economy, benefitting businesses, workers, and local governments.

The Strengthening Unemployment Insurance for Coronavirus Impacted Workers and Students Act, would expand upon the CARES Act and make needed fixes to enhance the law by:

• Extending the FPUC through December 31, 2020;
• Making the FPUC retroactively available as far back as thecoronavirus pandemic disaster declaration date;
• Codifying into law current U.S. Department of Labor (DOL) guidance to provide a full $600 per week federal payout to individuals whose employers have enrolled in work sharing UI programs.
• Exempting UI benefits from income for all means-tested programs, such as federal Section 8 housing and nutrition assistance programs like SNAP;
• Creating a $300 federal benefit for recent college graduates and students.
• Extending 100% federal financing of UI Extended Benefits.

“In this midst of a pandemic and unprecedented economic upheaval, this legislation would help extend unemployment insurance and maintain economic stability for individuals, families, and communities,” said Reed.

“Nobody is living it up on $600 per week, but that sum could make a life-saving difference for thousands of Americans.  It is appalling that some lawmakers want to try to financially pressure Americans into choosing between their health and destitution.  COVID-19 doesn’t care about the calendar or political time tables.  We have to be smart and this targeted, temporary measure will help ensure Americans who are out of work through no fault of their own can afford food, housing, and medicine until it is safe to go back to work”, he continued.

Rhode Island is one of 27 states that is currently offering work-sharing programs, also referred to as short-time compensation (STC).

Rhode Island’s WorkShare program is available to any employer with two or more employees.

Any Interested employers may apply for WorkShare by visiting DLT’s WorkShare website or calling their employer phone line at (401) 462-8418.

“Work sharing is a critical tool in an economic downturn that allows companies to reduce work hours for their staff but keep them on full payroll, and maintain their health and retirement benefits.  So workers win and companies save on re-hiring costs.  It is a proven job saver in both red states and blue states and this $100 million will benefit Rhode Island and other states with existing work-sharing programs, and help those that are looking to enact a program qualify for federal support,” said Senator Reed,

Senator Reed noted that work-sharing programs have helped 40,000 people nationwide during the pandemic, according to the Labor Department.

©WLNE-TV/ABC6 2020