Millions of Americans will fall off an ‘income cliff’ when extra $600 in unemployment benefits ends next month (Source cnbc.com)
Tens of millions of Americans who lost their jobs because of the coronavirus pandemic have been able to collect an extra $600 in weekly federal unemployment benefits over the past few months on top of the standard amount given by their state. For many households, the enhanced benefits have been a financial lifeline amidst record job loss and a burgeoning recession. But on July 31, that enhanced benefit will end — and that could have dire consequences for millions of households. Renters, who tend to be lower income and have lost a disproportionate number of jobs during the pandemic compared to homeowners, will also be hit particularly hard. When the supplemental benefits run out and tenants who are out of work receive only the base unemployment benefits, they will face an “income cliff,” with many “unable to cover food, clothing and other living expenses,” according to an analysis from the Urban Institute.