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: The CBO released a report on June 4 about the impacts of the $600 boost, which argued it could cause a drag on employment in the long term. According to the CBO report, the additional $600 would keep household spending on food, housing and other goods and services closer to what Americans would spend if they were employed. Additionally, the report finds U.S. economic output would “probably be greater” in the second half of 2020 than it would be without the extension. This would result in increased supply demand, showing how critical the payments are as lifelines to Americans with little to no savings or retirement funds to tap into. To keep up with that demand, more jobs would be filled. 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.