States can pay unemployment benefits past Sept. 6 using pandemic funds
Treasury Secretary Janet Yellen answers questions during a Senate Appropriations Subcommittee hearing on June 23, 2021.
Greg Nash-Pool/Getty Images)
States can pay benefits to the unemployed past a looming Sept. 6 expiration date using pandemic funds that Congress previously allocated to state and local governments, Labor and Treasury Department officials said Thursday.
The American Rescue Plan, passed in March, extended pandemic-era unemployment benefits to Labor Day. More than 11 million jobless workers are poised to lose income support or see their aid reduced by $300 a week.
But it may make sense for jobless workers to continue getting income support past Sept. 6 in states where unemployment remains high, Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh wrote Thursday in a letter to the heads of the Senate Finance and House Ways and Means Committees.
Doing so will allow…