South Carolinians on unemployment could get $300 more a week after state seeks aid
South Carolinians on unemployment who are struggling to find work because of COVID-19 could get some extra cash soon.
The state’s workforce agency has applied for $300 a week extra in unemployment benefits through a federal program for every eligible person in the state who files for support, Gov. Henry McMaster’s office and the state’s Department of Workforce and Employment said Thursday.
“Our state should be proud of the economic recovery efforts and the progress we have made to date, but we know that some of our citizens are still struggling in the wake of this pandemic,” McMaster said in a statement. “We’ve chosen to participate in this program in a way that will provide additional unemployment relief from the federal government while maintaining our strong record of fiscal responsibility and protecting the interests of South Carolinians.”
The program, announced by President Donald Trump earlier this month after negotiations in Congress over a second round of COVID-19 aid stalled, is the second iteration of $44 billion in federal aid aimed at helping unemployed workers get the financial support they need while the pandemic continues to hamper the economy.
It’s unclear, however, exactly how fast the state’s application will be approved and how quickly the money will arrive.
The New York Times reported this month that it could take weeks, if not months, before people receiving unemployment assistance get the extra money since states will have to make adjustments while dealing with, in some cases, an antiquated computer system and a heavier-than-usual load of unemployment filings.
If approved, DEW director Dan Ellzey said the agency will work as quickly as possible to get the application into DEW’s system.
The payments will be retroactive to Aug. 1, DEW said. However, unlike previous federal benefits that were through the federal CARES Act, there is a funding cap. And if the program runs out of money, the payments will stop.
DEW said the program and all payments will end on Dec. 26 if the funding is not gone before the sunset date.
By applying for that $300 option — rather than the $400 option that would have required a state match of $100 — South Carolina will not have to pay $20 million more per week, or a total of up to $462 million — as it continues to deal with a large revenue dip.
It also means the Legislature won’t have to approve the application since the option will not require spending state dollars.
Earlier this month, McMaster voiced approval for the Lost Wages Supplemental Payment Assistance, and Wednesday reiterated his support, saying his office was getting “real close to making a decision” and stated his preference for the $300 option.
The federal government has approved the applications of at least 30 states so far.
Of those approved, 28 states applied for the $300 option, while two applied for the $400 option, according to a memo written by Dan Ellzey, the director of the state’s Department of Workforce and Employment that was obtained by The State Tuesday.
In that same memo, Ellzey recommended South Carolina take the $300 option.
“We recommend that South Carolina submit an application for the $300 option for a specified period of time, such as five weeks,” Ellzey wrote to McMaster and to legislative leaders. “This allows South Carolina to deliver enhanced weekly benefit amounts to our claimants with minimal cost to the State. Even though there is the potential for costs due to fraudulent payments, this appears to be a reasonable trade-off in order to receive an estimated $280 million in federal funding available under the LWA program.”
About 223,000 South Carolinians currently get unemployment benefits.
But those eligible for the program must get at least $100 weekly in unemployment insurance benefits, meaning all but 12,500 South Carolinians on unemployment will qualify, Ellzey said.
The state’s average weekly unemployment benefit is $260, and the maximum weekly unemployment benefit is about $326.
“Deciding whether or not it was in the state’s best interest to apply for these funds was not an easy decision,” Ellzey said in a statement Thursday. “Taking the time to weigh the options in order to best mitigate the state’s risk and ensure it wouldn’t cost South Carolina taxpayers was the right thing for the governor and legislators to do.”
This story was originally published August 26, 2020 at 5:36 PM.
