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U.S. jobless benefit cut-off pushes millions to financial cliff-edge

Published 12/27/2020, 12:04 AM
Updated 12/27/2020, 12:10 AM
© Reuters. FILE PHOTO: Forgotten Harvest food bank distributes goods ahead of Christmas in Michigan

By Simon Lewis

(Reuters) - When the U.S. Congress passed a pandemic aid bill on Monday, Meghan Meyer, a single mom from Lincoln, Nebraska, thought she would get some respite from the daily struggle to feed and house her two kids during an unprecedented health and economic crisis.

But the next day President Donald Trump declared the long-awaited relief package "a disgrace" and said he would not sign it into law, decrying some of its spending measures while also demanding it include bigger stimulus checks for most Americans.

By the weekend, he had refused to budge.

That leaves Meyer, who has been on unpaid medical leave from her customer service job at retailer TJ Maxx since May because she is at risk of severe COVID, facing a financial cliff edge. She is one of roughly 14 million Americans whose emergency unemployment benefits, introduced by Congress when the pandemic took hold in March, ended on Saturday.

"I don't know what I'm going to do,” Meyer, 39, told Reuters in a phone interview. To make it through 2020, Meyer said she has had to lean on friends and charities to help put food on the table, pay her rent, cover the family dog's medical expenses, and buy Christmas presents for her kids.

"I have held out and held out," she said.

The new relief bill would extend through mid-March programs that support self-employed workers and those unemployed for more than half a year. It also gives an additional $300 a week through mid-March to all those receiving jobless benefits, some 20.3 million people. And it extends through January a moratorium on evictions due to expire on Dec. 31 and provides $25 billion in emergency rental assistance.

Many economists agree that the aid is insufficient and more will be needed after Democratic President-elect Joe Biden takes office on Jan. 20. Biden has called the bill a "downpayment."

Negotiated by Trump's own Treasury secretary, Steven Mnuchin, and the Republican Party's congressional leaders, the bill has been flown to the president's Florida beach resort where he is staying for the holiday, awaiting his possible signature. In tweets on Saturday, Trump signaled he was still unwilling to sign the bill, despite pleas from lawmakers to show goodwill at Christmas time.

"I simply want to get our great people $2000, rather than the measly $600," he tweeted Saturday, referring to the bill's stimulus checks, while he also continued to rail about the November election as he made baseless claims about election fraud.

Trump had not criticized the aid package's terms before it went before the House of Representatives and the Senate for a vote.

As pandemic lockdowns hammered the economy in March, Congress rushed through emergency unemployment benefits as part of the $2 trillion CARES Act. At the time, lawmakers did not envisage the aid would be needed beyond Christmas and, until last weekend, they could not reach a deal to extend the benefits.

Meyer, like others, has watched her benefits dwindle over the past six months after a CARES program that gave her $600 a week in supplemental jobless payments expired in July and she went on to exhaust her allowance of Pandemic Emergency Unemployment Compensation.

That left her with extended benefits of just $154 a week up until Saturday, which would increase to $454 if Trump relents and signs the bill. If he doesn't, Meyer will get nothing.

"It's the difference between whether we have enough groceries or not, whether I can pay my car insurance, whether I can have gas to go to a food bank," she said.

Meyer said she voted for Trump in 2016 but was quickly turned off by his behavior in office, and described his opposition to the relief package as "mean-spirited."

'SQUEEZE' ON GROWTH

U.S. job growth has slowed after an initial rebound when stay-at-home orders were lifted over the summer, and a new wave of coronavirus infections now threatens to dent the recovery.

Andrew Stettner, a senior fellow at nonpartisan think tank The Century Foundation, said delaying relief will slow the recovery even if most Americans are vaccinated and life returns to normal in 2021.

“If you don't have this money circulating in the economy, it's going to squeeze things,” Stettner said.

Like Meyer, most people who are no longer eligible for federal unemployment benefits will be left with no income at all, as most states offer meager assistance, he said.

About 9 million Americans who would not normally qualify for unemployment insurance, including the self-employed and gig workers, were receiving Pandemic Unemployment Assistance (PUA) until it expired along with other CARES programs on Saturday, Stettner said.

Among those is artist Marji Rawson, 54, of Ann Arbor, Michigan, who in a normal year would run a booth at art festivals across the country. Those festivals may not return until June, but Rawson from Saturday will lose about $150 a week in PUA that she has relied on throughout the pandemic.

© Reuters. FILE PHOTO: Forgotten Harvest food bank distributes goods ahead of Christmas in Michigan

"As if this world isn't full of anxiety already, now we have this on top of it," said Rawson.

Latest comments

She still spends money on medical care for her dog? priorities
STRONG BEAR WILL BE LAUGHING ALL THE WAY TO THE BANK ON 2021!######!!!!!!!!!!
Why doesnt Congress have THEIR pay cut off and given out to the prople who have seen their lives destroyed
I see hiring signs everywhere. millions of places are hiring.
If Trump sells his soul, giving taxpayers a measly 5% of the 2.3 Trillion...What trash reporting. What about congress stuffing in 5500 pages of pet projects?
Never Forget you are reading Reuters which is a heavy left leaning news source. The flavor of the minute never changes, blame Trump, promote Biden.
Exactly what i have seen and read...basically, If there is anyway to have a remote or weak negative link to trump, they will print it, otherwise they won’t even publish the story. Garbage.
We dint get any cash as such in India...
The undecency is limitless. Millionaires and billionaires using the poors as an argument to make more money. I guess those people will buy Tesla shares?
I live in Russia. Putin transferred $ 65 for each child,that's all the help))) America is a Paradise for those who want to work!
But the cost of life might not be the same. Besides, Russia has no debt, the US has a tremendous one.
we only have $ 65 too in Taiwan. but businesses are fine here.
seriously? Do you have a brain?
I live in Russia. Putin transferred 65 dollars for each child))) That's all the help)) America is a Paradise for those who want to work!
GOOD!! don't use my tax money to feed those lazy incompetents.
Where the jobs at tho! Q4 is about to end and we got millions of “seasonal” hires about to get layed off on top of the already 20 million unemployed, anybody who wants a job wont be able to find one, just like anybody who wants a test can get a test, in reality couldn’t smh.
each entitled to their own opinion...use it for critical thinking instead of stone throwing. That is the problem though, While I don’t agree 100% with the premise of his comment, there are many people who make more money sitting at home now and they do get an a job, which further hurts manufacturers and society. Simple truth. I’ve seen it.
it's one thing to not work for lack of ambition and drive Zack. It's another thing to own your own business or work for 20 years at a business to then be told that you CAN'T work understandably due to ppl dying. MOST ppl would be happy to return to work if the circumstances were different. But if the govt is offering to help then either put up or shut up. The American Ppl don't need to hear about what you're NOT gonna do for them. We've already been hearing that for 7 months.
To much mimimi in USA. People struggling going to food banks with their very expensive SUV. Americans don’t know what a struggle is. Go to Africa and see what hardship people are facing. Deiving SUV, watching netflix in a comfortable home and carrying an iphone is not a struggle
Yes and no, once you contracted all those debt to pay for the SUV and the rest, you are indeed poorer than those who have nothing. Remember 2008? Where does come the money that make your stocks grow?
You cabnt eat a SUV, and yoi cab't sell it back because nobody has the money. That's a crisis.
leave it to Reuters to come up with some sob story and make Trump look like the bad guy because he won't sign some BS stimulus package
You think trump is an Angel? Cmon.. Please Don't fool yourself
cone on yourself...you dont have to even like Trump to see the weak, one-sidedness of this article...Where is the mention of Congress only having to pull out the 5500 pages of pork and say American citizens get this much on one page? AOC and the squad did itlol!
stimulus is never helping anyone zach. It only sedates the economy. Look up cantillon effect. Look up m2 money supply against the value of the dollar. The best thing for the economy is jobs. Tell cali oregon, washington amd the northeast open like florida or no funding the charades needs to stop. Everytime we have a “stimulus bill” the wealth gap widens and widens. The fed and treasury needed this dearly to buy more bank reserves and bonds. This had more to do about keeping up and inflated busted economy instead of letting it fall and start with clean money. Dont believe me look all this up. Google jerome powell begs for stimulus, m2 money supply and the debasement of the dollar, cantillon effect with george gammons.
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