A group of House Democrats plan to introduce legislation that would cover 100% of most worker paychecks throughout the coronavirus outbreak.
Rep. Pramila Jayapal, a Washington Democrat and co-chairwoman of the Congressional Progressive Caucus, announced the Paycheck Guarantee Act, which she said would provide “a federal paycheck” to workers, covering 100% of earnings up to $100,000.
“A federal paycheck guarantee is a real solution that matches the scale of the crisis. Mass unemployment is a policy choice. We can and should choose differently,” Jayapal said in a statement Friday. “A federal paycheck guarantee would stanch more layoffs and unemployment, and quickly and reliably deliver relief to workers. Workers would not be forced to apply for unemployment insurance, overwhelm that system and then have to once again find a job. Businesses of all sizes would be able to keep workers on payroll and benefits — and be able to quickly re-open — partially or fully, without having to rehire and retrain their workforce.”
Congress and President Trump last month enacted a $2.2 trillion measure providing $1,200 in direct cash payments and expanding unemployment insurance to four months with an additional stipend of $600 per month.
Jayapal said her measure would create a streamlined process that eliminates the need to apply for unemployment pay and would keep workers connected to their jobs, which would enable a faster economic recovery.
The measure would allow workers to remain enrolled in employer-sponsored benefits, including health insurance plans.
And it would encourage employers to rehire recently laid-off workers by covering payroll retroactively to the start of the coronavirus outbreak.
The measure would also pay for rent and other business expenses to “ensure that businesses don’t shutter completely and can re-open when the pandemic ends.”
Several House Democrats have signed on to the measure, among them Reps. Rosa DeLauro of Connecticut, Earl Blumenauer of Oregon, and Mark Pocan of Wisconsin.
Several liberal groups issued statements supporting the bill.
“The Paycheck Guarantee Act is exactly the kind of bold action that government needs to take right now to support working families in this time of extraordinary need, and in doing so help secure a quicker, more equitable recovery,” Andy Green, managing director of economic policy at the Center for American Progress, said in a statement.
Jayapal’s measure stands little chance of advancing in Congress.
Republicans, who control the Senate, say they want to monitor the disbursement of the $2.2 trillion measures. They are also seeking to add $251 billion to a small business aid program that is running out of money. Democratic leaders are seeking to double the funding amount to include new money for hospitals and state and local governments, as well as an increase in food stamp benefits.
