Joe Biden Surrenders On Federal Unemployment Benefits | HuffPost Latest News - Action News
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Posted: 2021-06-04T20:16:07Z | Updated: 2021-06-04T20:52:45Z

President Joe Biden has conceded to Republicans in the political battle over unemployment insurance.

Biden said last month that the extra $300 the federal government is temporarily adding to unemployment benefits has no measurable impact on hiring. The president changed his tune on Friday, however, saying the extra money has been helpful but that it makes sense it expires in 90 days.

Millions of workers will actually receive their final federal benefits this month, as Republican governors in 25 states who claim the money has caused a worker shortage pull the plug on the extra $300, as well as separate programs for gig workers and the long-term unemployed.

White House press secretary Jen Psaki said Friday afternoon that governors have every right to not accept the extra benefits. Its the first time the White House has weighed in on the biggest controversy over the red state cutoffs, which congressional Democrats did not anticipate when they extended the temporary benefits earlier this year.

Labor law experts and Sen. Bernie Sanders (I-Vt.) have argued federal law actually requires the Labor Department to make sure some of the benefits get paid until their scheduled expiration in September. Labor Secretary Marty Walsh told HuffPost on Thursday that his department was looking into it, but Psakis statement indicates the White House thinks Sanders is wrong.

The presidents comments about ending the extra $300 are hugely disappointing and will do nothing to help the millions of workers still in crises, the National Employment Law Projects Nicole Marquez said in a statement. The worker advocacy group has argued the law requires the administration to keep paying gig worker benefits.

Psaki wouldnt say whether the administration believes the boosted federal unemployment insurance is hurting employment levels, saying its a really difficult thing to analyze. She said the coronavirus remains the biggest impediment to the economic recovery.

Economic and unemployment experts said the benefits had minimal impact on employment levels in the May jobs report, which came in slightly below expectations but nevertheless showed bigger monthly gains in the job market than in decades before the pandemic.