Unemployed people in Arizona were the first Americans to start receiving an extra $300 in weekly unemployment benefits Aug. 17 under an executive order issued by President Donald Trump, and since then, 39 other states have been approved to hand out the money — but only six are doing so.
Laid-off workers shouldn’t get too used to the extra cash: it will likely dry up in a matter of weeks.
The memorandum Trump signed Aug. 8 at his New Jersey golf club called for a “Lost Wages Assistance” program to distribute an additional $300 in weekly federal unemployment benefits on top of the state benefits that unemployed people typically receive. The source of that extra $300 is a $44 billion fund set aside for the Federal Emergency Management Agency. The Committee for a Responsible Federal Budget, a nonpartisan think-tank, estimates the funds won’t last more than five weeks.
“ Nearly 1 million Americans who receive less than $100 a week would be ineligible for the add on benefit ”
There is another significant caveat — jobless Americans are only eligible for the $300 add-on if they already receive at least $100 a week in benefits from their state. Therefore, nearly 1 million Americans who receive less than $100 a week would be ineligible for the add-on benefit, Eliza Forsythe, a labor economist and assistant professor at the University of Illinois at Urbana-Champaign, calculated.
The Lost Wages Assistance payments aren’t automatic. States must apply through FEMA for a grant “to administer the supplemental payments for lost wages.” States will have to pay 25% of the cost of delivering the extra $300. (The FEMA grants do not cover that expense.)
So far no states who have applied for the FEMA grants have been rejected, Keith Turi, Assistant Administrator of Recovery at FEMA, told reporters Aug 20.
At least one governor has said her state won’t apply for the FEMA grant because residents don’t need the extra $300. South Dakota Gov. Kristi Noem, a Republican and Trump ally, said she won’t be submitting an application. “My administration is very grateful for the additional flexibility that this effort would have provided, but South Dakota is in the fortunate position of not needing to accept it,” she said in a statement. “South Dakota’s economy, having never been shut down, has recovered nearly 80% of our job losses.”
Here’s where things stand in states that have been approved by FEMA
Alabama
Alabama received FEMA’s approval on Aug. 21.
Based on estimates from FEMA and the U.S. Department of Labor, the Alabama Department of Labor said eligible unemployment beneficiaries could expect to receive the $300 add-on benefit ”in approximately three weeks.”
Alaska
Alaska received FEMA’s approval on Aug. 23.
Alaskans likely won’t receive those benefits for at least six to eight weeks, Cathy Muñoz, Deputy Commissioner at the Department of Labor and Workforce Development, said.
Arizona
As of Aug. 26, more than $252 million was distributed to unemployed Arizonans to make the extra $300 payments according to Arizona’s Department of Economic Security.
Approximately 400,000 unemployment beneficiaries in the state have received the $300 supplemental unemployment benefit that was retroactively paid for the first week and second week of August.
Arkansas
Arkansas received FEMA’s approval on Aug. 25.
It’s not yet clear when unemployed individuals will start to receive the add-on benefit.
California
California received FEMA’s approval on Aug. 21.
At first California Gov. Gavin Newsom, a Democrat and critic of Trump, did not support the executive order. Then he decided to apply for the add-on benefit. “As I say, don’t look a gift horse in the mouth,” he said on Aug. 10.
The Employment Development Department of California said it “will begin processing LWA payments in phases for eligible individuals in the week beginning September 7, 2020.”
Colorado
Colorado received FEMA’s approval on Aug. 16, but the state’s Department of Labor and Employment has “not yet determined what the benefit amount will be nor do we have any estimate on development timelines to reprogram our systems to pay these benefits,” Cher Haavind, a spokeswoman for the department, told MarketWatch.
Connecticut
Connecticut received FEMA’s approval on Aug. 24.
“The agency anticipates disbursement in mid-September and expects about 250,000 claimants will be eligible for the federal benefit,” according to an Aug. 21 statement published by the Connecticut Department of Labor.
Florida
Florida received FEMA’s approval on Aug. 29.
It’s not yet clear when unemployed Floridians will start to receive the add-on benefit.
Georgia
Georgia received FEMA’s approval on Aug. 23.
It will likely take three to four weeks for the Georgia Department of Labor to start distributing the add-on benefit, said Kersha Cartwright, a spokeswoman for the agency.
Hawaii
Hawaii received FEMA’s approval on Aug. 29.
“We’re diligently building a new program within the unemployment computer system to implement and pay LWA benefits as soon as possible,” said Acting Director Anne E. Perreira-Eustaquio of the Hawaii Department of Labor and Industrial Relations in an Aug. 27 statement.
Idaho
Idaho received FEMA’s approval on Aug. 19.
“To ensure individuals who need it most are receiving the new benefit, [Gov. Brad] Little directed the Idaho Department of Labor to identify ways to ensure the $300 per week in additional benefits is also provided to individuals who receive less than $100 per week in unemployment benefits,” an Aug. 19 statement reads. It’s not clear if the state will have to pay out an additional $100 to every jobless resident or make up the difference so that each claimant receives at least $100 a week in benefits.
The department did not immediately respond to MarketWatch’s request for a comment.
Indiana
Indiana received FEMA’s approval on Aug. 21.
“The State of Indiana, through the Department of Workforce Development, has applied for funding under this federal program and plans to begin providing it to eligible Hoosiers within the next three to four weeks,” states a notice posted on the department’s site.
Iowa
Iowa received FEMA’s approval on Aug. 14, one day after submitting an application. The state’s labor department, known as Iowa Workforce Development, declined to provide details on when jobless Iowans could expect to receive the add-on benefit.
Kentucky
Kentucky received FEMA’s approval on Aug. 21.
Kentucky will be contributing an additional $100 a week on top of the $300 federal benefit. That will boost unemployment benefits for every Kentuckian by $400 a week.
“While the application is approved, reconfiguring the computer systems to pay the $400 is likely to take about two weeks,” a statement put out by Kentucky Gov. Andy Beshear, a Democrat, states. “Therefore, benefits recipients should not expect the payments until sometime in early September.”
Louisiana
Louisiana received FEMA’s approval on Aug. 14.
More than 300,000 eligible claimants received the add-on benefit as of Aug. 26, and another 50,000 people are expected to receive it on Aug. 27. In total, the Louisiana Workforce Commission said it expected to distribute $284 million this week to make the $300 add-on payment.
Maine
Maine received FEMA’s approval on Aug. 25.
The Maine Department of Labor estimates that it will take three weeks to being issuing the benefit.
Maryland
Maryland received FEMA’s approval on Aug. 20.
“While it will take some time to work with the federal administration to implement this new program, all claimants will receive benefit payments retroactive to their earliest date of eligibility within the new program,” Maryland Department of Labor Secretary Tiffany Robinson said in an Aug. 19 statement.
Unemployment beneficiaries will start receiving the add-on benefit in late September, the agency said.
Massachusetts
Massachusetts received FEMA’s approval on Aug. 21.
The state has highest unemployment rate, 16.1%, in the country, according to the Bureau of Labor Statistics for the month of July. It’s unclear when Massachusetts residents will start receiving the $300 add-on benefit.
Michigan
Michigan received FEMA’s approval on Aug. 21.
The Michigan Unemployment Insurance Agency estimates that “about 910,000 Michiganders would receive at least $300 per week in supplemental benefits,” according to an Aug. 18 statement.
The agency has not indicated when Michiganders can expect to receive the add-on benefit.
Minnesota
Minnesota received FEMA’s approval on Aug. 29.
The state waiting for the U.S. Treasury “transfer LWA funding into our bank account,” according to a notice posted by the Minnesota Department of Employment and Economic Development. “Once we receive these funds, we expect we will be able to implement the new program immediately. The Minnesota Unemployment Insurance Program has already taken all the necessary administrative steps to implement the new program.”
Mississippi
Mississippi received FEMA’s approval on Aug. 22.
“It will be approximately three to four weeks before claimants in Mississippi start to receive these benefits,” Dianne Bell, a spokesperson for the Mississippi Department of Employment Security, told MarketWatch. “Our system must be recalibrated in order to accurately provide this service,” she added.
Missouri
Missouri received FEMA’s approval on Aug. 16.
100,000 eligible claimants in Missouri should receive the add-on benefit for the week ending Aug.1 by the end of this week, Rose Delores, a spokeswoman for the Missouri Department of Labor and Industrial Relations, told MarketWatch. Many should have already received it, she added.
Montana
Montana received FEMA’s approval on Aug. 18.
Montana will be contributing an additional $100 a week on top of the $300 federal benefit. That will boost unemployment benefits for every Montanan by $400 a week.
Over $31 million has been distributed to unemployed Montanans, Gov. Steve Bullock said on Wednesday.
New Mexico
New Mexico received FEMA’s approval on Aug. 15.
“It is unclear at this time when funding will become available, or how much funding is available,” Workforce Solutions Secretary Bill McCamley said in an Aug. 13 statement. The state agency did not directly respond to MarketWatch’s request for a comment.
New York
New York received FEMA’s approval on Aug. 23.
“We are diligently working to update our systems so we can administer the Lost Wages Assistance program and deliver supplemental benefits to New Yorkers as quickly as possible,” said Deanna Cohen, spokeswoman for the New York State Department of Labor.
North Carolina
North Carolina received FEMA’s approval on Aug. 21.
North Carolina Division of Employment Security said the agency “has been working to reprogram its benefits system and set up the accounting process to make payments to eligible North Carolinians as quickly as possible. Updates on a timeline for payments will be provided as more information is available.”
New Hampshire
New Hampshire received FEMA’s approval on Aug. 24.
It’s unclear when New Hampshirites will start to receive the add-on benefit.
Ohio
Ohio received FEMA’s approval on Aug. 26.
Ohio Gov. Mike DeWine said eligible unemployed Ohioans can expect to receive the add-on benefit by mid-September at a press conference earlier this week.
Oklahoma
Oklahoma received FEMA’s approval on Aug. 18, one day after submitting an application.
The Oklahoma Employment Security Commission told MarketWatch that Oklahomans could expect to receive the add-on benefit within four to five weeks and that the benefit will be “retroactive to Aug. 1, and all eligible claimants will receive back pay to that date once changes to the system have been put into production.”
“Working with legacy technology to implement this benefit will hinder the agency’s ability to make quick changes to the system, but our team will work as fast as possible given the constraints that exist dealing with 40-year-old technology,” OESC Interim Executive Director Shelley Zumwalt said in an Aug 17. statement.
Oregon
Oregon received FEMA’s approval on Aug. 28.
It’s unclear when people will start to receive the add-on benefit.
“We hope we are looking at a few weeks, but we’re really not certain until we get a little further into the work. As we get a more solid estimate, we will certainly share that. We don’t want people to have a false expectation of exactly when they will receive it,” Oregon Employment Department Acting Director David Gerstenfeld said ahead of the state’s approval by FEMA
Pennsylvania
Pennsylvania received FEMA’s approval on Aug. 24.
It’s unclear when Pennsylvanians will start to received the add-on benefits. Like many states, Gov. Tom Wolf, a Democrat, said the state will have to reprogram its computer system to administer unemployment payments.
Rhode Island
Rhode Island received FEMA’s approval on Aug. 22.
The Rhode Island Department of Labor and Training anticipates it will take two to three weeks to implement the add-on benefit, Margaux Fontaine, a spokeswoman for the department told MarketWatch.
Tennessee
Tennessee received FEMA’s approval on Aug. 22.
Tennessee started issuing the aid Wednesday, Chris Cannon, a spokesman for the Department of Labor and Workforce Development, told CNBC.
Texas
Texas received FEMA’s approval on Aug. 21.
Texas received $1.4 billion in funding from FEMA to distribute the $300 benefit add-on, Texas Gov. Greg Abbott, a Republican said in statement. $424 million has been distributed in the form of the add-on unemployment to more than 1.7 million people as of Aug. 24, according to the Texas Workforce Commission.
Utah
Utah received FEMA’s approval on Aug 16.
“We anticipate Utah will be ready to distribute within three to four weeks,” Nate McDonald, a spokesman for the Utah Department of Workforce Services, told MarketWatch. “Reprogramming the system will be the biggest piece.”
Vermont
Vermont received FEMA’s approval on Aug. 22.
The Vermont Department of Labor said it “expects to start issuing payments to eligible Vermonters in the coming weeks.”
“In addition to the application submitted to FEMA for this benefit, the Governor has requested $20 million in Coronavirus Relief funding from the Vermont Legislature to provide an additional $100 per week to eligible claimants, bringing the total benefit to $400 per week, for three weeks,” the Department said in an Aug. 24 statement.
Virginia
Virginia received FEMA’s approval on Aug. 26.
It’s unclear at this time when Virginians will start to receive the add-on benefit.
Washington
Washington received FEMA’s approval on Aug. 24.
“We will implement this as quickly as possible to distribute the extra payments to Washingtonians once our application is approved,” said Employment Security Department Commissioner, Suzi LeVine, in an Aug. 20 statement. “Any additional funds to help unemployed workers are welcome – and we estimate that this will provide more than $400 million to families, individuals and our state’s economy.
West Virginia
West Virginia received FEMA’s approval on Aug. 27.
Initially West Virginia Gov. Jim Justice said the state would be contributing an additional $100 on top of the $300 add-on benefit. However, FEMA did not indicate that when it announced the state’s approval.
It’s unclear when West Virginians could expect to start receive any additional benefits.
Wyoming
Wyoming received FEMA’s approval on Aug. 28.
It’s not yet clear when people will start to receive the add-on benefit.
This story was updated on Aug. 31, 2020.
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