Trump indicates support for renewing boosted unemployment insurance payments, says he wants to 'get funds to people so they can live'
- President Donald Trump indicated he could support a federal unemployment benefit, saying "we want to get funds to people so they can live" in a Fox News interview.
- But he still expressed concern about causing a disincentive to work, mirroring other Republicans who opposed a now-lapsed $600 government supplement for the same reason.
- Democrats are seeking to restore the bulked-up benefits through January and keep it in place while jobless rates are high.
- Experts say that the payouts have not caused work disincentives since unemployed people outnumber available jobs by at least four to one.
President Donald Trump indicated on Wednesday he would support extending a federal supplement to unemployment benefits in a final stimulus deal with Democrats. But he expressed concern about causing a disincentive to work.
"We want to get funds to people so they can live but we don't want to disincentivize people" from returning to the workforce, the president said in a Fox News interview. However, he did not specify a benefit amount.
Trump also railed against additional federal aid to states, calling it a "bailout" for cash-strapped state governments. That's been a critical Democratic demand for months as plummeting tax revenues caused by the pandemic forces significant layoffs of public workers.
Negotiations over another stimulus package are progressing slowly with Democrats and the White House at odds over unemployment insurance. The $600 weekly federal benefit expired last Friday for millions of unemployed people, and Congress has fiercely debated the amount it should be replaced with. Democrats are pushing to renew the benefits through January.
On Tuesday, Senate Majority Leader Mitch McConnell suggested he could accept a revival of the payouts if it was part of a negotiated stimulus package supported by Trump.
Republicans have assailed the weekly $600 supplement onto state unemployment checks since shortly after it was approved in March. They say it causes many laid-off workers to earn more than their past jobs and disincentivizes work.
The GOP introduced a 70% wage-replacement plan for jobless people early last week. But it drew little support among Republican lawmakers and Democrats rejected the proposal.
Asked about cutting benefits during period of high unemployment and scarce jobs last week, McConnell said Republicans were seeking a "sweet spot" — to strike a balance between jobless people meeting their basic needs and encouraging them to search for new employment.
However, experts say there are a lack of jobs available with unemployment at 11.1% and few signs of a quick economic recovery. A new study from economists at Yale University also found people drawing the bulked-up benefit checks joined the workforce at roughly the same rate as others.
The Washington Post reported on Wednesday that the Trump administration offered Democrats a proposal to extend a $400 weekly federal benefit through July. Democrats led by Speaker Nancy Pelosi, however, are seeking to restore the $600 benefit and keep it in place while unemployment is high.
A new survey from Morning Consult indicated around 5.4 million Americans will struggle to pay their bills with the end of federal unemployment benefits.