Title: The $600 Federal Unemployment Boost Is Set To End July 31. Here’s What Happens Next
Headings: The $600 Federal Unemployment Boost Is Set To End July 31. Here’s What Happens Next
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The $600 Federal Unemployment Boost Is Set To End July 31. Here’s What Happens Next
Additional Unemployment Benefits to End in July
Controversy and Research Over $600 Boost
What the Research Says
Where This Leaves Extended Unemployment Benefits Under the CARES Act
Bottom Line

Content: However, the report finds the positive impacts of these additional payments start to wane as time goes on. Although economic output would be greater through the end of this year, it would drop in 2021. The report states that an extension in the weekly benefit boost would “weaken incentives to work” since unemployment benefits could be greater than potential earnings; the CBO estimates that roughly 80% of people would take home more money through unemployment than they would if they were employed, should the benefits be extended until Jan. 31, 2021. Additionally, the report points out how funding the additional benefits would increase the federal budget deficit—and leave lasting marks on the economy. “In CBO’s assessment, large deficits tend to slow the growth of the economy in the long term, thereby reducing overall income and the consumption of goods and services in the future,” according to the CBO report. Where This Leaves Extended Unemployment Benefits Under the CARES Act
Even if Congress doesn’t renew the weekly unemployment boost, some extended unemployment benefits provided by the CARES Act will continue. Unemployment benefits are a joint effort between federal and state governments. In most states, unemployment benefits last for up to 26 weeks. But the CARES Act extended eligibility to 39 weeks total.