Summary
The White House has warned that if the government shutdown continues, some states may have trouble funding unemployment benefits. However, the impact is expected to be less severe than the effect on food assistance programs like SNAP. Unemployment benefits are mostly paid for by states, with the federal government covering only a small part of the administrative costs.
Key Facts
- About 1.6 million Americans are currently unemployed and rely on unemployment benefits.
- Approximately 20,000 of these are former federal workers.
- The Trump administration stopped SNAP payments due to the shutdown, affecting about 42 million people.
- Unemployment benefits are mainly funded by states with taxes from employers, while the federal government covers around 7% of administrative costs.
- States haven't received new federal funding for administrative costs since October 1.
- Some states might feel financial pressure by mid-November if the shutdown continues.
- Experts say it's unlikely that unemployment benefits will stop, as states will prioritize these payments.
- The Labor Department has suggested ways for states to fund administrative costs temporarily and promised reimbursement once the shutdown ends.
