THIRD WORLD USA
Arizona, California, New York, Rhode Island and Tennessee are among the first states to begin paying a $300 weekly boost to unemployment benefits.
The $300 enhancement was offered by the $900 billion Covid relief law signed by President Donald Trump on Dec. 27.
Connecticut and Washington state expect to start disbursing the benefit in mid-January. Other states don't appear to have concrete timelines.
First payments
Workers in California were paid the $300 weekly supplement as early as Sunday, according to the state Employment Development Department.
However, the first tranche is only available to the 1.3 million Californians who are receiving regular state benefits or aid through the Federal-State Extended Duration program, which kicks in during periods of high unemployment, the agency said.
Benefits will be delayed for others — almost 3 million people — until "revised programming is in place" for the extended federal programs, the agency said.
Those federal programs include Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation.
All workers in New York and Rhode Island, including those collecting PUA and PEUC benefits, will begin receiving the $300 boost along with this week's payments, according to state labor officials.
Rhode Island recipients will get the funds as early as Monday, according to Margaux Fontaine, a spokeswoman for the state's Department of Labor and Training.
Arizona residents were able to file a weekly claim for the additional $300 beginning Sunday, according to Tasya Peterson, a spokeswoman for the state's Department of Economic Security. The payments started flowing this week along with workers' regular benefits, she said.
Tennessee began disbursing the funds on Monday, according to Chris Cannon, a spokesman for the state Department of Labor and Workforce Development.
Connecticut, Washington
Connecticut labor officials expect to start paying the $300 enhancement by mid-January, according to a statement issued Tuesday by Gov. Ned Lamont and Kurt Westby, the state's labor commissioner.
Washington state expects to issue two weeks' worth of payments on Jan. 15, according to information on the state's unemployment website. It typically takes a few days for banks to process the payments after being issued, according to information on the Employment Security Department's website.
The New Jersey Department of Labor has reprogrammed its systems to administer the $300 benefit and will soon begin distribution, once user testing is successfully completed, according to spokeswoman Angela Delli-Santi.
The $300 weekly supplement follows two others enacted during the coronavirus pandemic: a $600-a-week stipend provided by the CARES Act through July, and a subsequent $300 weekly Lost Wages Assistance payment offered for up to six weeks through early September.
While some states were able to disburse that aid quickly, many took several weeks — even a few months — to do so.
The $300 enhancement was offered by the $900 billion Covid relief law signed by President Donald Trump on Dec. 27.
Connecticut and Washington state expect to start disbursing the benefit in mid-January. Other states don't appear to have concrete timelines.
© Provided by CNBC
A handful of states have begun issuing a $300 weekly boost to unemployment benefits or signaled workers will get the payments starting this week. Others expect the aid to kick in later this month.
Workers in Arizona, California, New York, Rhode Island and Tennessee will receive the first batch of enhanced payments this week, according to state labor agencies. California and New York are the No. 1 and 2 states, respectively, relative to the number of workers receiving jobless benefits.
Connecticut and Washington state aim to disburse the supplement beginning in mid-January, officials said.
A handful of states have begun issuing a $300 weekly boost to unemployment benefits or signaled workers will get the payments starting this week. Others expect the aid to kick in later this month.
Workers in Arizona, California, New York, Rhode Island and Tennessee will receive the first batch of enhanced payments this week, according to state labor agencies. California and New York are the No. 1 and 2 states, respectively, relative to the number of workers receiving jobless benefits.
Connecticut and Washington state aim to disburse the supplement beginning in mid-January, officials said.
© Provided by CNBC
The $300-a-week increase in jobless benefits comes as part of a $900 billion Covid relief package signed Dec. 27 by President Donald Trump.
The stipend is available for up to 11 weeks, to workers unemployed at any time between Dec. 26 and March 14.
Most other states haven't yet offered concrete payment timelines as they work to implement new unemployment rules included in the relief law. Workers will be reimbursed for any gap resulting from delayed aid.
Those provisions include 11 extra weeks of federally funded benefits for workers who exhausted their standard allotment of state aid, and to self-employed and other workers who don't qualify for state benefits.
The $300-a-week increase in jobless benefits comes as part of a $900 billion Covid relief package signed Dec. 27 by President Donald Trump.
The stipend is available for up to 11 weeks, to workers unemployed at any time between Dec. 26 and March 14.
Most other states haven't yet offered concrete payment timelines as they work to implement new unemployment rules included in the relief law. Workers will be reimbursed for any gap resulting from delayed aid.
Those provisions include 11 extra weeks of federally funded benefits for workers who exhausted their standard allotment of state aid, and to self-employed and other workers who don't qualify for state benefits.
First payments
Workers in California were paid the $300 weekly supplement as early as Sunday, according to the state Employment Development Department.
However, the first tranche is only available to the 1.3 million Californians who are receiving regular state benefits or aid through the Federal-State Extended Duration program, which kicks in during periods of high unemployment, the agency said.
Benefits will be delayed for others — almost 3 million people — until "revised programming is in place" for the extended federal programs, the agency said.
Those federal programs include Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation.
All workers in New York and Rhode Island, including those collecting PUA and PEUC benefits, will begin receiving the $300 boost along with this week's payments, according to state labor officials.
Rhode Island recipients will get the funds as early as Monday, according to Margaux Fontaine, a spokeswoman for the state's Department of Labor and Training.
Arizona residents were able to file a weekly claim for the additional $300 beginning Sunday, according to Tasya Peterson, a spokeswoman for the state's Department of Economic Security. The payments started flowing this week along with workers' regular benefits, she said.
Tennessee began disbursing the funds on Monday, according to Chris Cannon, a spokesman for the state Department of Labor and Workforce Development.
Connecticut, Washington
Connecticut labor officials expect to start paying the $300 enhancement by mid-January, according to a statement issued Tuesday by Gov. Ned Lamont and Kurt Westby, the state's labor commissioner.
Washington state expects to issue two weeks' worth of payments on Jan. 15, according to information on the state's unemployment website. It typically takes a few days for banks to process the payments after being issued, according to information on the Employment Security Department's website.
The New Jersey Department of Labor has reprogrammed its systems to administer the $300 benefit and will soon begin distribution, once user testing is successfully completed, according to spokeswoman Angela Delli-Santi.
The $300 weekly supplement follows two others enacted during the coronavirus pandemic: a $600-a-week stipend provided by the CARES Act through July, and a subsequent $300 weekly Lost Wages Assistance payment offered for up to six weeks through early September.
While some states were able to disburse that aid quickly, many took several weeks — even a few months — to do so.
Some people will get debit cards for their $600 stimulus payment
$600 stimulus checks are targeted by scammers
The legacy of 2020: Riches for the wealthy and White, financial pain for others
Here’s how long the $600 stimulus checks will last for Americans living paycheck to paycheck
The second round of $600 stimulus payments is already hitting Americans' bank accounts. But with holiday debts to cover and increased utility costs as winter sets in, this money may not last very long.
© Provided by CNBC
For the average working American living paycheck to paycheck, the latest $600 stimulus check will last three to three and a half months, according to an analysis from Earnin, a mobile app that allows you to access your paycheck early.
Using data from over a million app users, Earnin analyzed how long it will take for bank account balances to return to the average amount they were prior to the federal payments hitting the account. During the first round of $1,200 stimulus checks, Earnin found that it took bank accounts about six and a half months, or 25 weeks, to return to normal fund levels.
Those who use the Earnin app tend to be living paycheck to paycheck and have lower bank balances, says Ram Palaniappan, CEO of Earnin. "Many of them would be people who work retail, nurses who work at hospitals, government employees such as TSA agents and people in call centers," Palaniappan says. "This is a large group of America."
For the average working American living paycheck to paycheck, the latest $600 stimulus check will last three to three and a half months, according to an analysis from Earnin, a mobile app that allows you to access your paycheck early.
Using data from over a million app users, Earnin analyzed how long it will take for bank account balances to return to the average amount they were prior to the federal payments hitting the account. During the first round of $1,200 stimulus checks, Earnin found that it took bank accounts about six and a half months, or 25 weeks, to return to normal fund levels.
Those who use the Earnin app tend to be living paycheck to paycheck and have lower bank balances, says Ram Palaniappan, CEO of Earnin. "Many of them would be people who work retail, nurses who work at hospitals, government employees such as TSA agents and people in call centers," Palaniappan says. "This is a large group of America."
© Provided by CNBC A look at how long it took the average bank account balance to return to normal levels following the first round of $1,200 stimulus payments.
But the latest $900 billion Covid-19 relief package only allocated up to $600 per individual ($1,200 for married couples filing jointly), including dependent children under age 17, if you earned less than $75,000 ($150,000 for couples) in 2019. Stimulus payments start to phase out if you earned more than that, stopping completely for those with adjusted gross incomes of $87,000 or more ($174,000 for married couples).
Less money means it will take less time to spend it. And lower stimulus payments will hit those living without any savings much harder, Palaniappan tells CNBC Make It.
For Americans with less than $100 in their checking accounts, Earnin estimates that the stimulus check won't last more than six weeks. About 1 in 5 of those struggling financially will spend the money right away, Earnin estimates.
"The $600 stimulus check will last for different amounts of time for different people. But for the people who are even more distressed financially, it's going to be about one and a half months," Palaniappan tells CNBC Make It.
Of course, this is just an initial estimate, Palaniappan says. The timing of these stimulus payments plays a role as well. "It's a time of higher expenses," Palaniappan says. It's just after the December holiday season, which generally means people are paying off holiday gift expenses, experiencing higher energy bills and potentially earning less income due to time off.
Additionally, unemployment is still pretty high. "Let's not forget that it's still really tough for people to get a job," he says.
Plus, at the beginning of the pandemic, many Americans were able to defer payments on their credit cards, student loans and mortgages. While programs have been extended for some, for others, those debt obligations are starting to catch up, Palaniappan says.
But the latest $900 billion Covid-19 relief package only allocated up to $600 per individual ($1,200 for married couples filing jointly), including dependent children under age 17, if you earned less than $75,000 ($150,000 for couples) in 2019. Stimulus payments start to phase out if you earned more than that, stopping completely for those with adjusted gross incomes of $87,000 or more ($174,000 for married couples).
Less money means it will take less time to spend it. And lower stimulus payments will hit those living without any savings much harder, Palaniappan tells CNBC Make It.
For Americans with less than $100 in their checking accounts, Earnin estimates that the stimulus check won't last more than six weeks. About 1 in 5 of those struggling financially will spend the money right away, Earnin estimates.
"The $600 stimulus check will last for different amounts of time for different people. But for the people who are even more distressed financially, it's going to be about one and a half months," Palaniappan tells CNBC Make It.
Of course, this is just an initial estimate, Palaniappan says. The timing of these stimulus payments plays a role as well. "It's a time of higher expenses," Palaniappan says. It's just after the December holiday season, which generally means people are paying off holiday gift expenses, experiencing higher energy bills and potentially earning less income due to time off.
Additionally, unemployment is still pretty high. "Let's not forget that it's still really tough for people to get a job," he says.
Plus, at the beginning of the pandemic, many Americans were able to defer payments on their credit cards, student loans and mortgages. While programs have been extended for some, for others, those debt obligations are starting to catch up, Palaniappan says.
