Washington. In the midst of the coronavirus pandemic, millions of Americans will lose their unemployment benefits, which have been significantly increased due to the crisis. US President Donald Trump’s Republicans and Democrats in Congress were unable to agree on an increase in the unemployment benefit increase of $ 600 a week by Friday noon (local time).
The increase agreed at the end of March as part of a corona stimulus package expires in all states at the latest on Friday night.
The White House, the Republicans and the Democrats blamed each other for the replacement of the generous unemployment benefit scheme. The House of Representatives Democrats had already approved another $ 3 trillion stimulus package in May, but the Senate Republicans only started addressing the issue a few weeks ago. They presented a package of $ 1 trillion. Negotiations on a compromise proposal failed.
Democrats: Millions of Americans in distress
The Democrats warn that dropping the extra aid could put millions of Americans in financial difficulties. Even the head of the US Federal Reserve, Jerome Powell, had asked politicians this week to find a follow-up arrangement because millions of people needed further support given the high unemployment rate. Analysts warn that the loss of additional aid should slow the beginning recovery of the US economy.
The unemployment rate in June was an extremely high 11.1 percent. Before the pandemic in the United States escalated in March, the rate was 3.5 percent. Most recently, around 17 million people received regular unemployment benefits.