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To fix unemployment, fix unemployment insurance

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Published February 11, 2021 5:00am ET
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To fix unemployment, fix unemployment insurance
Fred Delaurenti, a volunteer driver with Meals on Wheels, prepares to make a delivery at an apartment building, Wednesday, Dec. 9, 2020 in Renton, Wash., south of Seattle. Nationally, Meals on Wheels America said its 5,000 community programs are, on average, serving more meals this year compared to in 2019, and nearly all of them are facing financial strain because the COVID-19 pandemic has also forced them to buy additional safety equipment and pay drivers to replace volunteers. | (AP Photo/Ted S. Warren)

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.

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Tag:

Charity Congress Nonprofits Unemployment