Massachusetts unemployment checks to get $300 boost from feds amid coronavirus crisis - Insurance News | InsuranceNewsNet

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August 25, 2020 Newswires
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Massachusetts unemployment checks to get $300 boost from feds amid coronavirus crisis

Boston Herald (MA)

Aug. 24--Massachusetts unemployment checks will soon get $300 fatter thanks to a federal grant amid the coronavirus crisis, according to the state's Executive Office of Labor and Workforce Development on Monday.

The Bay State -- with the country's highest unemployment rate -- has been approved for the Lost Wages Assistance Grant. This will result in Massachusetts receiving three weeks of Federal Emergency Management Agency funds to pay an extra $300 per week in unemployment benefits.

Recently, the extra $600 in federal weekly unemployment benefits expired.

Then President Trump signed an executive order to extend additional benefits of $300 or $400 per week -- depending on which plan governors choose -- to the unemployed.

Gov. Charlie Baker last week signaled the state would apply to receive funds under the new program.

The state's application was submitted late last week by the Massachusetts Emergency Management Agency, in coordination with the Department of Unemployment Assistance.

"Per FEMA's authorization, the grant will fund an additional $300 weekly payment to those who are eligible for the three weeks ending 8/1/20, 8/8/20, and 8/15/20," the Executive Office of Labor and Workforce Development said in a statement. "The Massachusetts Department of Unemployment Assistance has already begun work on the technology requirements necessary for this program and anticipates being able to quickly deliver retroactive funds to eligible claimants in the coming weeks.

"Most claimants currently receiving benefits do not need to take any action because the Commonwealth will automatically add LWA to their weekly benefit payment retroactive to the dates they are eligible," the statement said.

Under Trump's $400 per week plan, states are required to ante up 25% of the added cost, or $100 per claimant in order to access the extra federal benefit dollars.

But Massachusetts' application indicates that the Bay State will not add the extra $100 supplement.

Baker was recently asked if the state could afford the additional $100, and he noted how the state would have to dip into emergency aid provided in the CARES Act.

About $900 million from the CARES Act is "money that we made available to communities to fund things like going back to school," Baker said. "So it's coming out of a pot that most of us believe is sort of already designated for a very particular purpose that was consistent with the original intent of the legislation."

Massachusetts had the nation's highest unemployment rate in July at 16.1%, according to a U.S. Bureau of Labor Statistics report released Friday.

Bay State unemployment was down from 17.4% in June, but still far above July's national unemployment rate of 10.2%.

___

(c)2020 the Boston Herald

Visit the Boston Herald at www.bostonherald.com

Distributed by Tribune Content Agency, LLC.

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