Three more states join GOP push to end pandemic unemployment benefits early
Austin, Texas – Texas, Indiana, and Oklahoma have joined 17 other Republican-controlled states in signaling an early end to federal pandemic-related unemployment benefits.
Altogether, the cuts in these states will affect 3.7 million workers who were laid-off during the coronavirus. The early cut-offs will amount to $22 billion in benefits they will not receive, CNN reported.
Under the American Rescue Plan, federal jobless payments of $300 per month in addition to state benefits were extended through September, but states have the ability to opt out of the program.
Now, Republican governors across the country are choosing to end the benefits early, arguing that labor shortages are hampering economic recovery. They believe the federal payments are discouraging Americans from reentering the workforce.
Texas Governor Greg Abbott also claimed that "nearly 18% of all claims for unemployment benefits during the pandemic are confirmed or suspected to be fraudulent."
The GOP governors' reasoning doesn't consider childcare issues and health concerns as reasons why people may choose to stay home.
If those people have less to spend thanks to benefit cuts, it could ultimately do greater harm to local businesses and economies in these states.
Cover photo: 123RF/stokkete