California secures federal funds to pay for extended pandemic unemployment benefits
California has secured $4.5 billion for the "Lost Wages Assistance Program" made possible through an executive order signed by President Donald Trump August 8.
Individuals who are currently eligible to receive at least $100 per week in unemployment benefits from the state may also now qualify for an additional $300 weekly supplement, paid for by the Federal government.
The Employment Development Department (EDD) has announced the state's participation in the Lost Wages Assistance (LWA) program in a release, which was authorized by an August 8, 2020 Presidential Memorandum.
The Federal Emergency Management Agency (FEMA) approved the state's application Saturday and will provide an initial amount of $4.5 billion to pay for an extra $300, with the possibility of additional funding going forward. The state also kicks in $100 per week.
Governor Gavin Newsom initially said California would not be able to participate in the new program, saying the state couldn’t afford the $700 million weekly price tag to participate in the federal aid program.
According to the FEMA program application, "the state-funded portion may be sourced from the Coronavirus Aid Relief and Economic Security fund allocation." That act was signed into law on March 27. States can also leverage existing state funding used to pay regular state unemployment benefits to satisfy the state funding requirement.
The LWA supplemental payment of $300 per week will be available for a limited period of time, a minimum of three weeks, for claimants who are:
- Currently eligible to receive at least $100 per week in benefits, and
- Who have provided a self-certification that they are unemployed or partially unemployed due to disruptions caused by COVID-19.
The LWA supplement will be available for weeks of unemployment dating back to
August 1. EDD and Cal OES jointly filed the grant application on Wednesday night. The application was approved Friday.
EDD will provide more information on this approved program as it becomes available.
