Abstract:On Saturday (August 8th) local time, US President Trump signed an executive order to extend the period for granting federal unemployment benefits, but the Democratic Party pointed out that Trump’s behavior is suspected of being unconstitutional. In addition, what is more noteworthy is that Trump bypassed Congress to issue bailouts, which may burden the states with billions of dollars in fiscal expenditures.
On Saturday (August 8th) local time, US President Trump signed an executive order to extend the period for granting federal unemployment benefits, but the Democratic Party pointed out that Trump’s behavior is suspected of being unconstitutional. In addition, what is more noteworthy is that Trump bypassed Congress to issue bailouts, which may burden the states with billions of dollars in fiscal expenditures.
Congress cannot agree on Trump's executive order
The content of the executive order is to extend the weekly unemployment benefits of 400 US dollars to alleviate the economic impact of the epidemic. Since the outbreak of the epidemic, Congress has approved an additional $600 a week for the unemployed. However, this subsidy policy expired on August 1, and Congress has been unable to reach an agreement to extend the period. Many Republicans worry that, in addition to the unemployment benefits provided by the states, the $600 weekly benefit provided by the federal government will encourage people to remain unemployed.
Under Trump's executive order, states need to provide $100 of the additional $400 in weekly benefits.
Affected by the epidemic, many states have faced budgetary tightening. When asked how many governors agreed to participate in the plan, Trump said: “If they don’t participate, that’s all. It’s up to them.”
Virginia Democratic Governor Ralph Northam’s Finance Director Aubrey Layne said in a telephone interview on Sunday (9th) that he believes that if states are allowed to use federal bailout funds The state of Virginia can participate in the funds allocated to them by the federal government under the CARES Act. He said that according to his preliminary understanding, states can do this, but he and others are still waiting for the release of specific rules.
Lane said that a better solution is for Congress to pass legislation.
"Congress cannot reach a consensus on this. This is ridiculous." He said, "It would be better if the president used his influence in negotiations to promote consensus in Congress."
The details of the plan are already confusing. The White House economic adviser, Larry Kudlow, is conflicted about whether federal funds will depend on additional state spending.
Subsequently, the White House stated in a clarification statement: “These funds will be provided to those who meet the conditions, including those who receive $100 a week in existing assistance and can prove to be unemployed due to the epidemic.”
Most states do not support Trump’s plan and say it is difficult to achieve it
Several advocacy organizations concerned about the plan said that the structure of the executive order is obvious, and federal funding will depend on the 25% of the financial support contributed by the states.
New York State Democratic Governor Andrew Cuomo called the plan "an impossible thing."
"I don't know whether the president really thinks this executive order is a solution, or it is just a strategy in the negotiation." Cuomo said, "but it is impossible for the states to coordinate. I I think this is just a chapter in the book "Washington's Ineffective Response to the New Crown Epidemic."
In Connecticut, Democratic Governor Ned Lamont (Ned Lamont) pointed out in an interview with CBS that the plan will allow Connecticut to allocate $500 million in fiscal expenditures to provide unemployment benefits in the second half of the year. Lamont called Trump's plan "not a good idea."
Lamont said: "I may therefore use funds for testing for the new coronavirus-I don't think this is a good solution."
Ohio Republican Governor Mike DeWine praised Trump's executive order.
"He is trying to do something. He is trying to push things forward." Devin said.
However, his attitude towards whether Ohio will participate in the program is still unclear: "We are measuring whether the program can be implemented."