Stimulus: ‘Growing sense of panic’ with no further federal relief in sight

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Since the end of July, approximately a dozen More and more people show up each day for a free lunch in a bag for the homeless in northwest Washington, DC, where tents dot the neighborhood’s parks and street corners. More than a third are new in the center, Charlie’s Place, which also distributes clothing and groceries.

“People have lost their jobs. They don’t get any more stimulus money. They just couldn’t hold on, ”said Reggie Cox, director of the center.

There is support on both sides of the aisle to send a second round of checks, extend at least some unemployment benefits, and allow small businesses to apply for another loan so they can pay their workers. But Republicans, who control the Senate, and Democrats who run the House, remain very distant on the details even after weeks of talks in July.

“Whatever your political affiliation, how could you not want to help these people? It makes political sense to do the right thing here, ”Cox said. “Our guests certainly think that way.”

Millions of people are still unemployed

The financial aid package that Congress passed in March allowed people to make money fairly quickly at a time when lawmakers didn’t expect the pandemic to last that long. This more than made up for the drop in income, according to a report by researchers at the University of Chicago and Notre Dame University.

But the economy is far from being recovered. Consumer spending is down 8% from January and the number of small businesses opened is down nearly 20%. The unemployment rate, at 10.2%, remains higher than at any time during the Great Recession.
`` It's a lose-lose battle. She's been waiting four weeks for the sheriff to kick her out
Some people still wait weeks to collect their unemployment benefits. Almost a million people first filed for unemployment last week and more than 15 million continued to claim benefits. Many states remain overwhelmed by the unprecedented number of claims they must process.

But unlike earlier this year, when people were also receiving stimulus checks, state unemployment benefits may be the only safety net program they can resort to right now – just as some lose their coverage. against evictions.

“There is a growing sense of panic,” said Behnaz Mansouri, a Washington unemployment bill lawyer who helps people fight denied claims.

“Having received various supports, people were managing their fear. But they no longer have that financial safety net, ”she said.

Trump’s executive action sows confusion

With Congress on hold, Trump signed several executive actions, attempting to provide financial aid to Americans. But given the executive branch’s limited power to spend money, the stocks don’t do much of what it promised.

He described a memorandum as providing an additional $ 400 per week in unemployment benefits, intending to replace the $ 600 per week that expired on July 31.

But in reality, the benefit will be $ 300 per week, unless cash-strapped states provide the extra $ 100. Plus, it could be weeks before anyone gets this money, as states will have to put in place a whole new system to administer these benefits – and the money may only last a few weeks.

As of Tuesday, seven states had applied for the new funding, according to the Labor Department. Florida, where the state’s maximum unemployment check is one of the lowest in the country, was not among them. States have until September 15 to apply.

“We’re always getting calls,” Laurie Yadoff, South Florida Coast to Coast legal aid lawyer, said of the new benefit.

“They ask, ‘What’s going to happen to me? They say they have late fees on their bills, interest penalties on their credit cards, and they owe friends and family they borrowed from, ”Yadoff said. “They think I know what’s going on and I don’t.”

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