States Can Legally Withdraw From Federal COVID Unemployment Programs To Get Job Vacancies Filled

(Washington, DC) — The Labor Department says it can’t legally stop states from opting out of extended federal COVID unemployment money. Roughly four-million Americans have been getting an extra 300-dollars a week. The agency said there’s no way to keep benefits flowing to those affected individuals once their state discontinues the programs. Twenty-five states led by Republican governors are ending the cash benefit. The states claim these enhanced benefits are creating a labor shortage, and offering an incentive to stay home instead of work. Critics of the move say, despite evidence to the contrary, benefits aren’t a big contributor to any labor-supply issues.