Policy Backgrounders

Initial Assessment of Early End to Unemployment Benefits: Questionable Impact

September 02, 2021

With the onset of the COVID-19 pandemic, many employers, following guidance or regulation from federal, state and local governments, were compelled to shut down their operations for extended periods of time, affecting millions of workers. Public policy leaders responded swiftly, in order to ease the dramatic shock to those workers and the economy as a whole with redesigned federally enhanced unemployment benefits. In March, the $1.9 trillion American Rescue Plan Act, extended a number of programs that were approved a year earlier to Spetember 6, 2021, including the Federal Pandemic Unemployment Compensation (FPUC) lowered to a $300 supplement; Pandemic Unemployment Assistance (PUA) for the self-employed, gig workers, and others who were not eleigible for standard unemployment insurance; Pandemic Emergency Unemployment Compensation (PEUC) for the long-term unemployed. The bill allowed states to opt out.