DOL Gives Guidance on Trump's Unemployment Benefits Order

LWA is funded by the Federal Emergency Management Agency through a joint federal-state agreement and provides the states with two benefit options.

Program Funding Details

For the $400 per week benefit, states must contribute 25% ($100); the federal government will cover 75% of the cost ($300).

Trump signaled recently that the federal government could pick up the entire $400 unemployment benefit if governors request that it do so.

States are encouraged to satisfy the 25% state match requirement and provide the additional $100 in benefits either through allocations of the state's Coronavirus Relief Funds (CRF), provided under Title V of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) or other state funding.

For the $300 per week benefit, FEMA will fund the entire amount, and states may choose to simply satisfy the 25% state match, without allocating additional state funds, via state funding used to pay regular state unemployment benefits.

Assistant Secretary of Labor for Employment and Training John Pallasch said in a statement that "with the expiration of FPUC, LWA will provide important assistance to workers who need it."

The LWA program may end earlier than Dec. 27, if FEMA expends $44 billion prior or the balance of the Disaster Relief Fund decreases to $25 billion, or if legislation is enacted that provides supplemental federal unemployment compensation or similar compensation for unemployed or underemployed individuals due to the COVID-19 outbreak.