Unemployment $600 Federal Aid Cut, California Received $55.1 billion

A new update for unemployment: the proposal from the Senate includes another $1,200 in direct payments to taxpayers, but it cuts the enhanced unemployment benefit from $600 to $200. According to reports, California lawmakers may offer relief for recipients of unemployment benefits as the $600 weekly federal aid is set to expire July 31.

California workers out of a job or working reduced hours in this historic pandemic have received a total of $55.1 billion in unemployment benefits since March, which also provides valuable consumer spending support for businesses and communities.

The state’s Employment Development Department (EDD) has processed a total of 9.3 million claims during this pandemic, between the regular Unemployment Insurance (UI) program, extensions, and separate Pandemic Unemployment Assistance (PUA) program.

Approximately 7.1 million of those are for regular state-provided UI benefits over the last almost five months – about double the number of regular UI claims the EDD processed during the highest year of the Great Recession (3.8 million in 2010).

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