Stress rises for unemployed as extra $600 benefit nears end

WASHINGTON (AP) — A major source of income for roughly 30 million unemployed people is set to end, threatening their ability to meet rent and pay bills and potentially undercutting the fragile economic recovery.

In March, Congress approved an extra $600 in weekly unemployment benefits as part of its $2 trillion relief package aimed at offsetting the impact of the coronavirus pandemic. That additional payment expires next week unless it gets renewed.

For Henry Montalvo, who was furloughed from his job as a banquet server and bartender in Phoenix in mid-March, the expiration of the $600 will cut his unemployment benefits by two-thirds. He uses the money to help support his three children and pregnant girlfriend.

“Now that it’s about to end, that grim and uneasy feeling is coming back and really fast,” Montalvo said.

The unemployment insurance program has emerged as a crucial source of support at a time when the jobless rate is at Depression-era levels. In May, unemployment benefits made up 6% of all U.S. income, ahead of even Social Security, and up dramatically from February, when it amounted to just 0.1% of national income.

“The increase has likely done as much or more to limit widespread hardship like food insecurity, homelessness, utility cutoffs, and mental health challenges, as any provision Congress has enacted in response to the pandemic and recession," said Indivar Dutta-Gupta, co-executive director of the Georgetown Center on Poverty & Inequality.

Congress enacted the extra payment for just four months, largely on the assumption that the viral outbreak would subside by late July and the economy would be well on the way to recovery. But confirmed case counts are rising in 40 states and 22 states are either reversing or pausing their reopening efforts, threatening to slow rehiring. The number of...