HARRISBURG, Pa. — Pennsylvanians filing for unemployment may have to wait for at least another month to receive new unemployment benefits from the federal government.
The Pennsylvania Department of Labor and Industry held an update on its unemployment benefits program via Zoom, earlier today. Secretary Jerry Oleksiak told reporters the state has asked the federal government to be included in the President's jobless pay program, which would provide an additional $300 a week.
During the call, Secretary Oleksiak pointed to President Trump's executive order, which he signed on August 8th. It provides federal funds through the Federal Emergency Management Agency's Disaster Relief Fund, and the government hasn't told Pennsylvania that's going to work. "We don't have the guidance from FEMA or the Department of Labor", the Secretary said.
He emphasized the need to create a separate system within his own department to receive the funds from FEMA and distribute them as unemployment benefits in Pennsylvania. "We don't know what exactly will be required of the system we will need to create to provide this benefit... it could take a month or more to get that system ready."
The Department's Compensation Benefits Policy Director, Susan Dickinson, explained how the money doesn't technically qualify as benefits because it's not coming through the U.S. Department of labor. "It's not an unemployment source that funds it, it's emergency funds. So, it can't intermingle with our regular UC trust funds, which our system can't pay it."
The program is being jointly run by FEMA and the U.S. Department of Labor. Accodring to the U.S. House of Representatives' Ways and Means Committee, The states have two options as to how much money they can offer their citizens. The first option allows states the option to offer Unemployment claimants another $300 per week in unemployment benefits without spending any additional state dollars.
The second option gives states the option to offer claimants $400 by adding an additional $100 through their own separate state funds or Coronavirus Relief Funds.
In total, FEMA will spend a total of $44 billion from the Disaster Relief Fund to make the initial $300 possible. But if the fund's balance reaches $25 billion, funds may not last as long. FEMA and Secretary Oleksiak expect the funds to last about five weeks in a state like Pennsylvania, which has the fifth-highest population in the country.
Secretary Oleksiak said the fastest way to get Pennsylvanians the money they need is for Congress to extend the Federal Pandemic Unemployment Compensation Program, which gave payments of $600 a week. The money for that program was included in the federal CARES Act, which passed in March. The same law also created the $1,200 stimulus checks for Americans, which most people began receiving in April.
The new benefits are retroactive to August 1st.