After a year and a half, federal unemployment benefits that have provided a crucial economic lifeline to many Michigan residents out of work duringthe pandemicare set to expire in just a few weeks.
The federal programsthat expanded jobless benefits to cover freelancers and contract workers— who typically wouldn't be covered by traditional state benefits—and added an extra $300 to regularweekly benefits that went to all claimants, among other programs, will last be paid out in Michigan the week ending Sept.4.
The benefits' expiration after Labor Day has been long planned, and President Joe Biden's administration won't seek toextend thebenefits beyond this date.
The pandemic though, is seemingly far from over, as the delta variant leads to increased COVID-19 cases in the state, renewing worker fears of contracting the virus. And for the state's Unemployment Insurance Agency, its work is far from over even as hundreds of thousands ofclaimants are expected to lose their benefits in a few weeks.
There were stillnearly 89,000 Michigan residents receiving regular state benefits as of Aug. 7, according to the most recent data from the U.S. Department of Labor, who willcontinue to receive benefits after the federal programs expire. Their benefit amount will drop to a maximum of $362 a week as the extra $300 goes away.
And there are still 20,000 unpaid claimants, according to the agency's data dashboard, and each case needs to be examined.
"Those are the ones that we are continuing to work through and weare working the most diligently at," Liza Estlund Olson, the acting director of the state's UIA, said in a call with reporters Wednesday.
There are also protests and appeals of agency decisions that the staff needs to work through, Olson said, and as a result, she's recommending that claimants continue to monitor theirMiWAM accounts and emails for communications from the agency for up to a year from now.
She said claimants can appeal agency decisions to an administrative law judge and then theUnemployment Insurance Appeals Commission.
"All of that takes time," Olson said. She added that those waiting for aneligibility determination for any of the federal programs and who receive it after Sept. 4 will be paid all funds for which they are eligible.
Still, the agency will slowly start to offboard about 1,500 contract workersas new jobless claims are expected to drop and call volumes decrease, she said. Nearly 650 permanent staff members and nearly 500 limited-term workers will remain at the agency, she said.
Which jobless programs are expiring
The programs expiring include:
- Pandemic Unemployment Assistance (PUA), which expanded benefits to freelancers, contract workers and those that are self-employed
- Pandemic Emergency Unemployment Compensation (PEUC), which extended benefits for up to 53 weeks once a claimant exhausted their regular state claim
- Pandemic Unemployment Compensation (PUC):An extra $300 a week for all eligible claimants
- Mixed Earners Unemployment Compensation (MEUC):Providedan additional $100 per week to certain claimants who have earned at least $5,000 in net self-employment income.
Several Republican-led states cut these benefits early, arguing that the enhanced benefits were a disincentive for people to go back to work and businesses struggled to hire as the economy reopened.
In Michigan,Gov. Gretchen Whitmer vetoed a GOP-backed bill in late July that would have prevented the state from distributing the additional federal$300 in weekly unemployment benefits.
The federal benefits, made available under the Coronavirus Aid, Relief and Economic Security, or CARES,Act, have gone through several iterations since they were first introduced in April 2020.
Until July 2020, claimants received$600a week in addition toof their state benefits, which max out at $362 weekly. Then-President Donald Trump made available an extra $300 in weeklybenefits through an executive order, which was retroactive to August 2020 and lasted a few months. Stimulus packages signed into law by both Trump and Biden continued the extra $300, but there were delays in getting these benefits to claimants.
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What claimants should know
- The Sept. 4 expiration dateapplies for people who show a benefit balance on their claims, according to a news release from the state's UIA.
- Claimants who arewaiting for an eligibility determination for any of the federal programs and receive it after Sept. 4 will be paid all funds for which they are eligible, the agency said, and they should continue to certify for benefits through Sept. 4.
- All protests and adjudications that have not been resolved by Sept. 4 will continue through the process despite the federal programs ending, the agency said.Benefits will be paid to claimants who are determined to be eligible.
- Some claimants receiving PEUC benefits may be able to apply for regular benefits.“If they do, then they could come back in and receive regular unemployment," Olson said. Claimants shouldlog in to theirMiWAM account and follow the link under "Account Alerts" to reopen/file a claim.
Separately, claimants whochoose to receive their benefits through a prepaid debit card should have gotten a new card from U.S. Bank by Wednesday, Olson said.Claimants have until Nov. 1 to spend the money on their old Bank of America card, she said.
What resources are available for those no longer receiving benefits
Stephanie Beckhorn, director of the Michigan Department of Labor and Economic Opportunity’s Office of Employment and Training, said there are more than 90,000 open jobs onMITalent.org.
"We really, really believe that there is something for everyone there," Beckhorn said in a call with reporters Wednesday."We don't want them to do it on their own. We have individuals and resources that can help walk them through the process."
She pointed to the department'sReturn to Work Playbook, which features industry-specific resources and resources to support individuals, such as veterans or people with disabilities, andvisit MichiganWorks.org, which offers job fairs, resume assistance, interview skills and more.
Contact Adrienne Roberts: amroberts@freepress.com.
