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States on hook for billions under Trump's unemployment plan

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Falls Church, Va. — Whether President Donald Trump has the constitutional authority to extend federal unemployment benefits by executive order remains unclear. Equally up in …
Falls Church, Va. — Whether President Donald Trump has the constitutional authority to extend federal unemployment benefits by executive order remains unclear. Equally up in the air is whether states, which are necessary partners in Trump’s plan to bypass Congress, will sign on. Trump announced an executive order Saturday that extends additional unemployment payments of $400 a week to help cushion the economic fallout of the pandemic. Congress had approved payments of $600 a week at the outset of the coronavirus outbreak, but those benefits expired Aug.1 and Congress has been unable to agree on an extension. Many Republicans have expressed concern that a $600 weekly benefit, on top of existing state benefits, gives people an incentive to stay unemployed. But under Trump’s plan, the $400 a week requires a state to commit to providing $100. Many states are already facing budget crunches caused by the pandemic. Asked at a news conference how many governors had signed on to participate, Trump answered: “If they don’t, they don’t. That’s up to them.” Aubrey Layne, secretary of finance for Virginia Gov. Ralph Northam, a Democrat, said in a phone interview Sunday he believes it would be feasible for Virginia to participate in such a program if states are allowed to use money that’s been allocated to them under the already passed CARES Act. He said his preliminary understanding is that states can do so, but he and others are waiting to see the rules published. The better solution, Layne said, would be for Congress to pass legislation. “It’s ludicrous to me that Congress can’t get together on this,” he said. “I think it would have been better for the president to use his influence in those negotiations, rather than standing on the sideline and then riding in like a shining knight.

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