August 10, 2020
Assessing the Executive Order Creating a Federal Unemployment Insurance Supplement
President Trump recently issued an executive order that creates a $400 a week unemployment insurance supplement. The executive order directs $44 billion from the Department of Homeland Security’s Disaster Relief Fund (DRF) to cover 75 percent of the UI supplement with states paying for the remaining 25 percent out of pandemic-relief funds they previously received. The federal contribution from the DRF is expected to cover 5 weeks of the executive order’s new supplement. AAF’s Labor Market Policy Data Analyst Isabel Soto discusses how this order could put additional burdens on states already struggling to meet unemployment compensation needs.
The challenge with this executive order is ensuring that the total $400 weekly supplement is implemented in a timely fashion. Due to the added complexity of different funding streams, it could leave several unemployed individuals without additional income support and put added strain on states’ unemployment offices.