Congress’ new unemployment stimulus package may not help everyone out of a job in NC
Congress has passed a coronavirus aid package that, among other things, will increase unemployment benefits for people who lose their jobs due to business closures as the pandemic spreads.
But unless the legislature changes state law, many North Carolinians could fail to receive that aid.
An unprecedented 200,000-plus North Carolinians have filed for unemployment since Monday March 16, as national job losses also set new records. That period here includes the orders from Democratic Gov. Roy Cooper that forced many businesses like bars, restaurants, gyms, movie theaters and salons to close in an effort to slow the spread of COVID-19.
The federal aid would be an extra $600 a week, and it would last up to 13 weeks beyond when the state stops paying its regular benefits.
For the average North Carolinian on unemployment — who receives $264 a week for eight or nine weeks in one of the lowest-paying plans in the country — the federal aid would be a massive boost.
But there’s a chance that it won’t apply to everyone in North Carolina who is out of work as the disease spreads and more businesses close.
National media outlets have reported that Congress’ plan is to give the extra $600 a week to people who have already been deemed eligible for unemployment by their home state.
However, only around 10% of unemployed North Carolinians actually receive unemployment benefits, one of the lowest rates in the country, said Sen. Wiley Nickel of Cary. Nickel is the only Democrat on the state legislature’s unemployment oversight committee.
The legislature is set to come back a month from now, and Nickel said making sure more people qualify for state benefits — so that they can also receive the federal benefits — needs to be a top priority.
“If we don’t make changes, we will be leaving billions of dollars on the table,” Nickel said in an interview. He also called on his fellow lawmakers to increase the state’s benefits in general.
Rep. Jason Saine, a Lincoln County Republican who’s one of the legislature’s top budget writers, said there is bipartisan consensus that the state needs to react. But many of the details of the federal stimulus are still unknown, Saine said Friday, including basic questions like how North Carolina will even apply for or receive the money.
Without knowing more about what Congress is actually doing, he said, it’s still too early to say what the state should do.
“We want to maximize everything the feds are going to do for us, without also acting too fast and hurting ourselves in the long term,” Saine said.
North Carolina has a $4 billion surplus in the unemployment fund, due to benefit cuts enacted by the legislature in 2013. Republicans including Senate leader Phil Berger have said they might look into dipping into that surplus now.
Who qualifies for unemployment?
While North Carolina does reject most people who apply for unemployment, it is possible that some people who get rejected by North Carolina might still be able to receive the federal money.
“This bill creates a new program, called Pandemic Unemployment Assistance, that extends benefits to gig workers, contractors and others who wouldn’t otherwise qualify for unemployment compensation but cannot work due to the coronavirus emergency,” NBC News reported.
The state government could make similar changes, if lawmakers decide they’re needed. On Wednesday, a new legislative committee focused on the economic response to coronavirus met for the first time.
The committee will focus on unemployment issues, as well as what the legislature should do to help businesses — and especially small businesses — stay afloat.
Lawmakers on both sides of the aisle appear to agree that some sort of change to unemployment benefits is a top priority, as job losses skyrocket.
“The quicker we can do that, the better,” Republican Rep. Julia Howard of Davie County said during Wednesday’s meeting. Howard is a co-chair of the new group focused on coronavirus economic support.
“It’s not just one area,” said Democratic Rep. Michael Wray of Roanoke Rapids, another co-chair. “It’s from the mountains to the coast. It’s all of North Carolina.”
Key parts of the unemployment stimulus
One noteworthy piece of the federal stimulus package is that it will apply to people who lost their job due to coronavirus, even if they used up their state-level benefits due to a different layoff in the recent past.
“If you’ve exhausted your benefits, eligible workers could generally reapply,” The New York Times reported. “But how much you would get and for how long would depend on the state where you worked.”
North Carolina doesn’t allow people in that situation to qualify for any benefits. So anyone who does find themselves in that situation would be eligible for the federal aid, but nothing extra from the state, unless the legislature makes a change.
Another key part of the federal unemployment package is that its extra $600 a week would go even to people who lost their job for reasons other than coronavirus, including people who lost their jobs before the outbreak and are still eligible for benefits.
The New York Times reported that the extended benefits will be available to anyone who became eligible for unemployment as of Jan. 27, and through the rest of 2020.
There is no telling how high that number might climb. In the week of March 14-21, according to data released Thursday, more than 3 million people filed for unemployment — a number that far exceeded even the heights of the Great Recession a decade ago.
This story was originally published March 27, 2020 at 4:32 PM.
