Federal Pandemic Unemployment Benefits Expired: Weekly Unemployment Benefits to Decrease

For nearly a year and a half, unemployed Americans have been receiving additional unemployment benefits as part of the relief package in the CARES Act. Those who were eligible for unemployment compensation were able to receive extended benefits, in addition to a weekly supplement from the federal government. The federal supplement expanded state unemployment benefits to cover independent contractors, gig workers, and self-employed individuals.

Weekly unemployment compensation is calculated based on income received prior to termination. In New York State, the maximum weekly unemployment benefit is $504. The federal supplement added another $600 for four months at the start of the pandemic and then $300 thereafter. During the pandemic, many New Yorkers lost their jobs due to the shutdown and very gradual reopening of businesses. Those eligible to receive unemployment benefits have been receiving a maximum of $804 per week before taxes. While $804 per week doesn’t seem like much, it is far better than $504 and has kept many New Yorkers afloat.

Unfortunately, the federal unemployment benefits have come to an end. That program expired yesterday, leaving New Yorkers with a maximum benefit of $504. An estimated 2.1 million Americans lost this federal supplement. Millions of Americans remain unemployed due to the pandemic. Some have not been able to secure a new position, while others are simply uneasy about returning to work during the pandemic due to their health or the health of household members.

For those eligible, the Child Tax Credit is still providing $300 per month until the end of the year. If it’s any consolation to New Yorkers, some states terminated those benefits several months ago. Foreclosures and evictions will eventually resume as will repayment on student loans deferred due to the pandemic. This can create the perfect storm if you are now living on reduced unemployment benefits. If you are struggling with your bills and concerned about the loss of federal unemployment benefits, please contact Zimmelman Law PLLC to help you navigate your financial hardship.

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Zimmelman Law PLLC

With over ten years of experience, Matthew D. Zimmelman, Esq. has helped thousands become debt-free and saved countless New Yorkers from losing their homes in foreclosure. Whether you are an individual or a small business, looking to file bankruptcy or looking to eliminate your debt without filing bankruptcy, we are here to help you get a fresh start.

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