Illinois warns extra $300 in weekly unemployment benefits will last only three weeks and leave out thousands of jobless workers

Illinois hasn’t been approved for the extra $300 weekly unemployment benefits authorized by President Donald Trump, but is already warning the aid will be limited.

The state said Monday it has applied for the Lost Wage Assistance program, which President Donald Trump created through executive action to extend federal jobless benefits after the $600 weekly supplement ran out at the end of July.

The state said in a news release it expects the “shelf-life” of the program under the current funding model to last about three weeks. It said about 55,000 low-income claimants won’t be eligible for the funds, which are limited to those who qualify for at least $100 in weekly unemployment benefits, either through state programs or the federal pandemic assistance program.

In early August, President Trump authorized the Federal Emergency Management Agency to spend no more than $44 billion for lost wage payments. But those funds are likely to dry up as more states receive approval and start disbursing benefits.

States approved for the program are guaranteed an initial three weeks of funding, and additional funding will be determined on a weekly basis, according to FEMA.

Illinois is one of the last states to apply for the program. As of Monday, 41 states have received approval for the benefits, according to FEMA’s website. The agency will dole out funds to states, and states will administer those funds retroactive to Aug. 1.

In an emailed statement, FEMA said “states, territories or the District of Columbia should apply for grants as quickly as possible given the potential for program termination based on the parameters established.”

The state did not respond to question Tuesday about the timing of its application. Gov. J.B. Pritzker said in a news release the program creates “needless competition among the states” for limited FEMA dollars and will “sow more confusion among the unemployed.”

Eliza Forsythe, assistant professor in labor and employment relations at the University of Illinois at Urbana-Champaign, said it’s possible states that were slow to apply could receive only the allotted three weeks of funding from FEMA.

“Once the pot of money is gone, it’s the end of the program,” Forsythe said.

Some states acted more quickly than others because they could process benefits under the new program using their current systems, she said.

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