White House press secretary Jen Psaki affirmed the right of Republican states to opt out of the enhanced pandemic unemployment program early, even as some Democrats have vowed to fight back.
The May jobs report released on Friday fell a bit short of expectations, reigniting concerns among some economists that the expanded benefits, which provide the unemployed $300 on top of whatever states pay, might be keeping people from entering the labor force. While the program is set to expire in September, more than two dozen states have announced they would end it sooner.
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During a Friday speech about the jobs report, President Joe Biden highlighted the temporary nature of the payments and said it “makes sense” that they end in 90 days. Psaki was asked about the impact that the benefits might be having on labor and also made a point of emphasizing their temporary nature. She also said that governors “have every right” to end them earlier.
“It is important for people to understand, factually, that the president, no one from the administration, has ever proposed making these permanent or doing it over the long term,” she said, adding that Biden’s reference to the sunset date during his speech earlier in the day was likely an effort to make that clear to the public.
The remarks are a tone shift from a month ago, when Biden defended the increased funds as a “lifeline” for millions and that “we don’t see much evidence” that people are opting to collect unemployment rather than find jobs.
Psaki’s comments stand in contrast to those of Democratic Sen. Ron Wyden, the chairman of the Senate Finance Committee, who told Politico this week that he would “do whatever it takes” to keep the benefits in place, even if it means changing the law.
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The first four states (Alaska, Iowa, Mississippi, and Missouri) will exit the expanded program on June 12.
