LANSING, MI (WKZO AM/FM) – A state agency says that unless Congress takes action on federal unemployment insurance programs provided under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act , those benefits will end December 26.
The Michigan Unemployment Insurance Agency estimates that the unemployment benefits of nearly 692,000 Michigan workers may be affected unless Congress acts swiftly to extend UI provisions under CARES. The federal legislation expanded UI to provide Pandemic Unemployment Assistance to 487,000 workers in Michigan impacted by the COVID-19 pandemic, including workers who are not ordinarily eligible for unemployment benefits, such as the self-employed and independent contractors.
CARES also provided Pandemic Emergency Unemployment Compensation, which allowed an additional 13 weeks of benefits to those who exhausted their regular state claim and federal reimbursements for Work Share benefits. That affects 205,000 in Michigan who will not be paid benefits for any weeks after December 26.
UIA Acting Director Liza Estlund Olson said “Allowing these programs to expire is not only harmful to Michigan workers, but it would be devastating to Michigan’s economy.”
Michigan’s average weekly unemployment benefit is currently estimated at $319. Olsons says the expiration of the unemployment claims could result in over $220 million that would not go into workers’ pockets or the state’s economy each week.
There is currently legislation pending in the State Legislature that would continue certain unemployment expansions but is unrelated to the CARES programs. Senate Majority Leader Mike Shirkey (R-Clark Lake) says the legislation would not include a permanent extension of benefits to 26 weeks.
