West Virginians receiving unemployment benefits will be getting an additional $300 a week from the federal government and another $100 from the state government, which will cost the state about $26 million per week, Gov. Jim Justice said Monday.
An executive order signed by President Donald Trump provides an additional $300 a week from the federal government for all Americans receiving unemployment benefits, which is half of what previous federal assistance paid. States must match this funding with $100. Although states can count their existing payments toward that $100, Justice said the state will match an additional $100.
“I commend President Trump for [the executive order] because we’ve got to get some money flowing to our people [who don’t know how] they’re going to pay the rent, how they’re going to keep from being evicted,” Justice said during a news conference. “… If you’re a landlord, please … don’t kick our people out on the street.”
The state funding will come from money left over from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, which Justice set aside. He said the funding, which amounts to about $678 million, will ensure the state does not have to increase taxes or put burdens on businesses to cover the funding.
“We did things that were prudent” to ensure CARES Act funding would be available, rather than spending it all immediately, Justice said.
The additional $400 per week will be applied retroactively, which means anyone receiving unemployment benefits will receive the additional money starting the week that ended Aug. 1, said Scott Adkins, acting commissioner of WorkForce West Virginia.
A person who already is receiving at least $100 in unemployment benefits will be eligible for the additional funding, Adkins said. Recipients will not have to take any action other than file their weekly claims for unemployment.
Adkins said the funding will function differently than the previous federal benefit. Rather than being funded through the U.S. Department of Labor, it will be funded through the Federal Emergency Management Agency. He said the state is still working out some of the mechanics with the federal government.
Unemployment skyrocketed nationally and in West Virginia because of COVID-19 and the subsequent restrictions on economic activity that followed. Although West Virginia has reopened most of its economy, some industries still are struggling from restrictions and a lack of customers, particularly restaurants and bars.
The state saw a large uptick in COVID-19 cases beginning in July. Although new daily cases have started to trend downward, they still are much higher than pre-July numbers.
