Trump admin opposes extending enhanced unemployment benefit

Trump ministration opposes a Democratic proposal to extend a $600 per week federal unemployment benefit approved in response to coronavirus pandemic, Labor Secretary Eugene Scalia said on Tuesday.

$600 payment, which is in dition to rmal unemployment benefits, “was right thing to do,″ Scalia said, but is longer needed as ecomy begins to recover.

money, included in a government relief pack enacted in late March, has helped millions of workers stay in ir homes and pay bills even as unemployment rate surged to its highest levels since World War II.

payments are set to expire July 31, and Democrats have pushed a plan that would extend enhanced benefit through January. Democratic-led House approved proposal last month, but it is considered unlikely to vance in Republican-controlled Senate.

Scalia pointed to an unexpectedly rosy jobs report released last Friday. By end of July, “we expect ecomy to be deep into process of reopening, with shutdown orders ended and millions of Americans freed to return to work,″ he told Senate Finance Committee.

Unemployment benefits will still be needed in August and beyond, “but circumstances that originally called for $600 plus-up will have changed,″ Scalia said. “Policy will need to change as well.″

Democrats challenged that view, saying unemployment rate is likely to remain at historically high levels through summer at least.

Friday’s jobs report showed that unemployment dropped unexpectedly in May to 13.3% as reopened businesses began recalling millions of workers faster than ecomists h predicted, but jobless rate is still on par with what nation witnessed during Great Depression.

Watching President Donald Trump “celebrate victory” Friday as jobs report was released “is yet ar sign that he doesn’t understand what it’s like for people born without a real estate portfolio,″ said Oregon Sen. Ron Wyden, panel’s top Democrat.

“Speaking conservatively, more than 20 million Americans are still out of work today,″ Wyden said, “and I bet you’re t celebrating if you’re among many people who don’t kw how y’re going to pay rent or put food on table this month.

Sen. Chuck Grassley, R-Iowa, Finance Committee chairman, said $600 weekly payments were “poorly targeted,″ with result that most recipients are being paid more on unemployment insurance than y earned when y were working.

“This discours people from returning to work or taking a new job, delaying recovery,″ Grassley said.

Grassley and or Republicans cited a report by Congressional Budget Office indicating that extending $600 payments through January would mean that about 5 of every 6 recipients would receive benefits higher than amount y would have earned from working.

Grassley said he hears from Iowans every day who wonder why y are earning less than ors y kw who are getting unemployment benefits. Employers also have complained that generous benefits are resulting in fewer applicants for job openings, he said.

Wyden called that evidence anecdotal and said idea that Americans don’t want to go back to work “is de wrong and insulting.″

Scalia said he agrees that most Americans “are excited to go back to work,″ but ded that ”at margins, a certain number will choose t to work” because of $600 payments.

Sen. Sherrod Brown, D-Ohio, said fact that those collecting ditional $600 per week receive more than ir usual pay only shows that “y were underpaid before.″ He pushed a plan to raise minimum w to $15 an hour, a concept Scalia resisted.

Sen. Michael Bennet, D-Colo., said lawmakers me “a profound mistake” by allowing enhanced payments to expire in July. Inste, he said, payments should be tied to ecomic conditions, so y continue as long as unemployment remains high.

“Benefits end, but costs don’t end,″ Bennet said.

With unemployment rate expected to remain in mid-teens through July, lawmakers will face pressure to compromise on some form of renewed benefits for jobless.

So far re are formal negotiations on ar relief pack. But analysts say need to dress fate of $600 weekly benefits could force a resolution of issue this summer.