Federal Unemployment Benefits Extension and $300 Boost To End But States Can Likely Use Existing Stimulus Funding To Extend State Unemployment Benefits

The Biden Administration has now confirmed that they won’t extend federally funded unemployment benefits past the September 6th expiration date. They are instead encouraging states with high unemployment or hit hard by COVID-19 Delta to use existing ARPA stimulus funding to extend and expand traditional state unemployment benefits for as long as needed.

With the unemployment rate approaching 5% nationally and many (mainly Republican) states having already opted out of pandemic unemployment programs (PUA, PEUC and $300 FPUC); the Biden Administration is reluctant to extend these federally funded programs by Executive order and would rather defer the decision to the states who manage and administer their unemployment programs.

“The temporary $300 boost in benefits will expire on September 6th, as planned. As President Biden has said, the boost was always intended to be temporary and it is appropriate for that benefit boost to expire. States and cities can use their portions of $350 billion in direct aid from the American Rescue [Stimulus] Plan to provide assistance to unemployed workers, including by continuing to provide additional weeks of benefits.”

Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh in a co-written Senate letter

State Funding From ARPA Bill

Biden’s ARPA stimulus bill provided $350 billion of State and Local Fiscal Recovery (SLFR) funding to address issues from COVID-19 related economic and joblessness.

As discussed in this video, there is wide latitude for usage of these funds by state governors and departments. This would include extending and expanding state unemployment benefits.

States Who Ended Federal Pandemic Unemployment Benefits Early

Over 25 states have already ended their participation, up to 10 weeks early, in these federal unemployment programs in order to encourage jobless workers to return to the workforce as their unemployment benefits could have been more than what they were making by working.

Most of these states still have low unemployment rates and high job vacancy rates. So it is unlikely they would use SLFR funding to extend or expand unemployment benefits, even if they wanted to.

Expanding State Unemployment to Pandemic Unemployment Assistance (PUA) Claimants

The one exception many state unemployment departments may make is to expand their existing programs to cover workers in the PUA program (free lancers, gig workers etc) who would normally not be covered by traditional state unemployment programs.

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7 thoughts on “Federal Unemployment Benefits Extension and $300 Boost To End But States Can Likely Use Existing Stimulus Funding To Extend State Unemployment Benefits”

  1. I have been locked out of the system since they updated it and haven’t received anything since July I talked to someone about it and they said it would be fixed and now I’m unable to get anyone to help

    Reply
    • To Whom It May Concern I been trying to get some benefits from UI though they are taking me through so much to ID me it’s in barrable it’s taking weeks and I still have no results yet it’s horrible that I am 54 yrs.old I should have no problem with ID ing my self im in need of help my bills and family are eating me out of house and home at times I want to give up please help me I need further assistance asap what do I do they won’t even except my ID at this point what do I do Im with out a answer and my paperwork is not coming in fast enough I need help with everything I lost help me please

      Reply
  2. BLESSINGS
    I TOO ALSO HAVE A REMAINING BALANCE ENOUGH FOR 1 MORE MONTH I CAN NOT CERTIFY NO MORE – PLEASE ADVISE HOW TO GET THE REMAINING BALANCE OF THE PUA – THANK YOU

    Reply
  3. WHEN IS MEUC BEING PAID ALREADY IN OHIO ….. KEEP GETTING THE RUN AROUND ABOUT IT. BEING THAT THEY OWE FROM DEC-SEPT. AND NOW THAT ITS STOP BEING PAID THERE IS NO ANSWER BUT ONLY BEING TOLD ITS STILL BEING IMPLEMENTED. THEY HAVE BEEN SAYING THAT FOR 4 MONTHS ALREADY. UGH

    Reply
  4. Wow…Obtaining this information now is very sad to me…Iam a groundskeeper/maintenance technician (in training) and a single mom of three children…Due to CODVID-19 I was forced to put my two weeks notice in at work because my child care provider was unable to provide services for me …so I was able to receive unemployment benefits for the past eight months…I was presented with a specific amount of benefits I have been surviving off of ..and I’m gratefully for the extra help yes but..in January when my benefits began I calculated my entire budget based of off the amount that was given to me … everything leading up to September 6th 2021 the end date…for me to find out today august 29th 2021 that the remaining balance (few thousand dollars) left in MY PUA account will not be (AVAILABLE TO ME)…on September 6th 2021..
    ummm WHY?…
    I have looked at a confirmed AVAILABLE AMOUNT OF BENEFITS for eight months for them to say the benefits will sit basically…
    Ummmm WHY?…
    I’m sending this email hoping it goes to the right place..please just let us get what ever is left in our account on September 6 2021 ..this is very serious just imagine how many people did what I did …please respond and share with the proper people…GOD BLESS..

    Reply
  5. My PUA stopped 2 weeks ago for no reason what is going on I need that money??????? I called NJ unemployment and they hung up on me 3x after waiting an hour

    Reply
  6. I never got the FPUA I got my unemployment and I certified every week. I am owed $300 a week from May 10 2021 thru June 2021. I need help in collect these funds. They say you do not have to do anything to get these funds I have been waiting , nothing was deposited into my account

    Reply

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