Today is the last day that many unemployed workers can claim federal benefits - and states probably won't be renewing them
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- Saturday, September 4 is the last day many jobless people can claim federal unemployment benefits.
- At least 7.5 million people are going to lose a steady source of income at a perilous stage in the pandemic.
- Congress and President Biden have shown no interest in renewing the benefits.
- See more stories on Insider's business page.
Federal unemployment benefits expire on September 6, but many unemployed Americans will be claiming them for the last time today.
That's because the expiration comes on Monday, making it so many workers can't claim benefits for the week following September 6. Instead, as Insider previously reported, they can only claim benefits for the prior week - and many states end their claim weeks on Saturday or Sunday.
It's not just the additional $300 weekly distribution that jobless workers are set to lose. Also expiring are two different pandemic-era programs that expanded both who's eligible for benefits and how long they can receive them.
That means that newly eligible unemployed gig workers and freelancers will completely lose their benefits, as well as those who were still receiving benefits after exhausting their states' allocation.
Those groups of people will be deprived of a steady source of income as the Delta variant sparks a surge of infections and hospitalizations in many parts of the country. The development is renewing concerns among many economists that the new pandemic wave could set back the recovery.
"I feel like they should not end any benefits until at least there is a vaccine for all ages of the people in America," Amanda Rinehart, an unemployed mother in Pennsylvania, previously told Insider. Her child is at high risk for COVID-19 and too young to receive a vaccine, meaning Rinehart will have to continue to stay at home to oversee virtual learning.
Most Democrats aren't interested in renewing the federal aid, which many economists credit with propping up the economy and workers through perilous stretches of the pandemic. Early rumblings from progressive lawmakers like Rep. Alexandria Ocasio-Cortez - who opened the door on pushing for an extension - have subsided. Republicans are staunchly opposed to the bulked-up benefits, arguing the generous aid is dissuading people from seeking new jobs.
In an August letter, Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh confirmed that federal benefits would end on September 6. However, the letter also said that states could use leftover funds from the American Rescue Plan to extend benefits on their own. Further guidance from the Department of Labor obtained by Insider said states could issue one-time or period payments to impacted workers.
But no states have committed to extending benefits. California has issued one-time stimulus payments to a majority of its residents, partially subsidized by Biden's first stimulus package.
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