The Economy & Your Finances: 750k Californians set to lose unemployment benefits on Dec. 26

The Economy & Your Finances: 750k Californians set to lose unemployment benefits on Dec. 26

With no stimulus deal in sight, more than 12 million Americans are set to lose their pandemic unemployment benefits on December 26. An estimated 750,000 of those will be Californians, most of them losing their Pandemic Unemployment Assistance (PUA), the rest pushed out of traditional unemployment assistance (UI) by the expiration of a CARES Act provision. Non-white workers face higher odds of losing their benefits than do white workers. A group of 125 economists are urging for more stimulus checks, and President-Elect Biden is calling on Congress to make a deal before year’s end, but as of now Democrats and Republicans in Congress remain at an impasse.

While in October, California’s unemployment rate fell below 10 percent for the first time since the start of the pandemic, spiking coronavirus cases and new restrictions may soon raise that number. Those who are receiving or applying for unemployment benefits continue to experience difficulties with California Employment Development Department (EDD). A state audit revealed that the department has jeopardized 38 million Californian workers’ social security numbers since the start of the pandemic. And many Californians have been unduly stripped of the funds on their unemployment debit cards.

The EDD is now requesting income verification documents from some who are receiving unemployment benefits. Members receiving Pandemic Unemployment Assistance (PUA) benefits have reported getting email notices from the EDD requesting that they upload documents through their UI Online Home page verifying their 2019 income. Watch out for any such income verification notices from the EDD! If you receive such a notice from the EDD via email or paper, you have only 21 days from the date of the notice to submit the required documents. Failure to timely provide the required documentation may result in a decrease in your weekly benefit amount or you may have to repay what you were not entitled to receive.

Last Friday, Governor Gavin Newsom announced he was shutting down his economic task force amid a resurgence of COVID-19. He also announced the launch of the California Rebuilding Fund, a recommendation from the task force, which will aid in the recovery of small businesses impacted by the pandemic.

While a quicker-than-expected economic rebound has California anticipating a $26-billion windfall by the next calendar year, a state legislative analyst is predicting California will be looking at a budget gap of $17.5 billion by 2024-2025.

Sources: NPR, California Policy Lab, LAist, CNBC, The Mercury News, The San Francisco Chronicle, ABC 30, Politico, Office of the Governor of California