What the upcoming ‘benefits cliff’ means for the economy
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What’s happening
Millions of Americans are set to lose unemployment benefits on Monday, when federal policies to support the jobless during the coronavirus pandemic come to an end.
Enhanced unemployment insurance was one of the key elements of the first stimulus bill, which was passed by Congress in March 2020 as nationwide lockdowns derailed the U.S. economy. The program provides extra federal money — $600 a week at first, $300 a week currently — in addition to state unemployment funds. The bill also expanded eligibility so gig workers, freelancers and others who typically don’t qualify for unemployment could receive weekly support.
These provisions will expire nationally on Labor Day, but 26 states — all but one led by Republican governors — have already stopped distributing the extra funds in an effort to persuade the unemployed to return…
