WASHINGTON (Pakistan Point News / Sputnik - 19th August, 2021) US states with high unemployment can extend expanded jobless benefits due to the coronavirus pandemic beyond the September 6 expiration by diverting other funds from the American Rescue Plan, Treasury Secretary Janet Yellen said on Thursday.
"In states where a more gradual wind down of income support for unemployed workers makes sense based on local economic conditions, American Rescue Plan funds can be activated to cover the cost of providing assistance to unemployed workers beyond September 6th," Yellen said in a letter to chairs of the Senate Finance and House Ways and Means committees.
In addition to unemployment programs operated by US states, Congress provided an additional $300 in weekly benefits as part of the $1.9 trillion American Rescue Plan.
When money the Federal jobless benefit subsidy runs out, Yellen said states have the option of diverting funds from $350 billion also provided by the ARP to support pandemic responses by state and local governments.
The soon-to-expire extra $300 in weekly unemployment payments proved controversial in several US states, where officials claimed low wage workers earned more by remaining at home than if they found new jobs.
