Sens. Merkley, Schatz Introduce Legislation to Provide Automatic Cash Assistance to Struggling Families Recovering From Natural Disasters
As the COVID-19 pandemic has made clear, direct cash provides families with immediate relief and gives them the flexibility to use the money wherever they face the most need--be that housing, food, health care, or other expenses.
"Our communities were already struggling in the face of this global pandemic when unprecedented wildfires hit and caused even more damage. The situation is nothing short of a crisis--families have lost loved ones, their homes, all of their belongings, and their jobs," said Merkley. "When people lose everything, their needs are immense, and nobody knows better than they do what is most critical to get back on their feet. This bill would put cash in families' hands when they need it most to secure food, shelter, and other immediate needs."
Due to climate chaos,
For those already struggling, natural disasters lower credit scores and increase debt collections, bankruptcies, credit card debt, and mortgage delinquencies and foreclosures. Economic crises also cause lasting damage--with sudden wealth losses driving up poverty rates and disproportionately impacting younger, lower income, and minority households.
To address those challenges, the Family Crisis Assistance Act would provide cash assistance at
The program would be administered by the
Grants would be made available once one of the following automatic triggers is met:
* A sudden increase in the state or national unemployment rate--the bill applies the Sahm Rule, i.e., an increase in the three-month moving average (six-month moving average for states) of the national or state unemployment rate by 0.5 percentage points or more relative to its low during the previous 12 months;
* A 20 percent increase in state unemployment insurance claims over three months; or
* A significant natural disaster--like the devastating wildfires that have hit
The Family Crisis Cash Assistance Act is supported by
For a copy of the bill text, click here: https://www.schatz.senate.gov/download/family-crisis-cash-assistance-act
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