To fix unemployment, fix unemployment insurance

One step in fixing the unemployment problem in this country is fixing the unemployment insurance problem. This is especially the case with the approximately 100,000 self-insured nonprofit organizations that are struggling to stay afloat in the face of the COVID-19 crisis.

The initial CARES Act, signed by President Donald Trump, set up a two-tiered system for the nonprofit organization industry. Nonprofit organizations that pay into the state unemployment system on a regular basis got 100% of their claims paid for by the federal government. Nonprofit organizations that self-insure only got half of their benefit charges paid for by the federal government.