Title: CARES Act Includes Essential Measures to Respond to Public Health, Economic Crises, But More Will Be Needed | Center on Budget and Policy Priorities
Headings: CARES Act Includes Essential Measures to Respond to Public Health, Economic Crises, But More Will Be Needed
CARES Act Includes Essential Measures to Respond to Public Health, Economic Crises, But More Will Be Needed
Expanded Unemployment Insurance
Direct Payments to Households
State Fiscal Relief
Increased Resources for Programs That Can Help Respond to Current Crisis
CARES Act Omits Urgent Needs That Next Legislation Must Address
Health Coverage
SNAP
Flexible Emergency Assistance Grants
Duration of Relief Provisions Should Be Tied to State of Economy, Not Artificial Timelines
End Notes

Content: Expanded Unemployment Insurance
The CARES Act includes a robust expansion in unemployment benefits that, in the near term, will enable more jobless workers to receive benefits and provide benefits that are more robust. This is critical, given both the sharp rise in unemployment we are already seeing and the underlying weakness in the basic Unemployment Insurance (UI) system. Three million workers filed a claim for UI benefits during the week of March 21, according to the Labor Department — an unprecedented increase. Initial claims averaged under 240,000 over the previous four weeks. Without the kinds of improvements in the CARES Act, the basic UI program would leave many workers out altogether and provide inadequate help to many others. Each state runs its own program and has significant discretion over eligibility and benefits. As a result, states vary widely in what share of jobless workers qualify for benefits and the level and duration of benefits. Nationally, fewer than 3 in 10 unemployed workers received UI over the 2010-2019 period. [ 1] Many do not qualify because they lack sufficient recent work history, are looking for part-time work in states that exclude part-time workers from UI, or left their job for a reason not covered by their state’s program, such as needing to care for an ill family member. During a recession, the share of jobless workers who qualify for UI typically rises because more unemployed workers have longer work histories and more lose their jobs for reasons that qualify them for benefits (layoffs versus a health issue).