Read on Twitter
Quick thread: the Trump admin has been pretty unclear about what it means by an "EO on unemployment insurance," but the main idea I've seen floated is notable in both how insufficient and counter-productive it would be 1/ https://twitter.com/JakeSherman/status/1291818580980518912
Per Politico, the Trump admin is considering allowing states to use money from a $150 bn CARES Act fund to top off benefits, in lieu of the Federal $600 bump that expired almost two weeks ago https://www.politico.com/news/2020/08/06/trump-unemployment-aid-plan-392500 2/
Why is this a terrible idea? First, states/localities are facing desperate funding crises now, so they need that money (and much more) to address public health and prevent layoffs of teachers and other public employees. This would make those funding crises even worse 3/
Second, I’m curious on takes @EvermoreMichele, @IndivarD, @pelhamprog and others, but this would likely require states to not simply adjust their systems (already a challenge), but probably pass new legislation – almost impossible when legislators aren’t in session 4/
Third, there’s not enough money here to address the problem! The Admin is pointing to $81 billion unspent, but that is mostly an accounting fiction – states have already allocated three-quarters of their money (and some goes to localities) https://www.cbpp.org/blog/states-are-using-federal-fiscal-aid-but-need-substantially-more 5/
By contrast, Treasury reported that additional unemployment payments were $80 billion in June alone. Given that the $600 expired two weeks ago, it’s not clear to me that there’s enough money to even cover what workers will have lost ALREADY vs. an extension 6/
So rather than enact a bill like the House passed 2+ mos. ago, Trump would take money desperately needed for public health/education, use it for UI in a way that is likely unworkable, and there still wouldn’t be enough to help workers for a meaningful length of time /end
Right after I wrote this thread, a new idea (taking FEMA money) was put on the table. But same issues apply (setting aside legality) -- e.g., is Trump going to take $2.5 billion away from disaster relief already committed to Florida? https://twitter.com/JStein_WaPo/status/1291847850733830146?s=20
