In an update to our previous story on the next piece of proposed stimulus legislation, the White House is looking at options for a return-to-work bonus, making clear their preference for incentivizing reopening the economy rather than extending unemployment benefits for the time being.
CNBC reports that the Trump administration has, according to Larry Kudlow, voiced their disapproval of the proposed extension of the extra $600 per week for families on unemployment, opting instead for a smaller temporary weekly sum for people returning to work.
To recap, the current bonus of $600 per week for those on unemployment is scheduled to expire after July 31st, but the HEROES Act from House Democrats proposed extending it through the end of the year; the notion attracted criticism for several reasons, the most notable of which included waning unemployment numbers and some viewing the idea as an incentive to continue collecting unemployment rather than actually stimulating the economy.
An ancillary proposition to decrease the amount of extra aid per week incrementally as unemployment numbers fall was mentioned, but the Trump administration appears to stand firm on their counterproposal involving the aforementioned return-to-work bonus.
It’s not unreasonable for this administration to want to incentivize those who are reluctant to return to work, especially when unemployment numbers in the last few months have been the highest since the Great Depression; in any event, it seems that, whether or not the HEROES Act passes, folks on unemployment will most likely stop receiving that extra $600 per week at the end of this July.
We recognize that a little over a month isn’t a supremely generous amount of time with which to prepare for a sharp cut in income, and there are only a few things you can actively do to ensure that you’re adequately prepared for the proposed incentive.
Firstly, if you’re furloughed for now, there isn’t much you can do other than wait for your place of occupation to open; however, if you were laid off, actively seeking a job opening in your field–or any field, at this point–will be enough for you to qualify for the bonus.
More importantly, however, is that you start looking at how the lack of funding will impact you in the short-term. Remember, 63 percent of Americans on unemployment were actually making more money with the bonus $600 per week than they were while working, so while the impact of losing that bonus come August won’t be negligible, hopefully unemployment is enough to cover the necessities.
Unfortunately, aside from “go back to work”, there isn’t a whole lot to do besides hurry up and wait. We’ll know more about this round of proposed stimulus activity in the coming weeks.