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AOC Wants to Bring Back Pandemic Unemployment Insurance

Critics have said the federal programs encourage the unemployed to refrain from looking for work, contributing to labor shortages.

U.S. Rep. Alexandria Ocasio-Cortez, a Democratic congresswoman from New York, is introducing legislation that would reinstitute COVID-related federal unemployment insurance payments through Feb. 1, 2022.

unemployment benefits application

The pandemic-era programs provided the long-term unemployed and out-of-work freelancers, gig workers and caregivers with unemployment compensation. “The majority of workers who received pandemic aid do not qualify for traditional jobless benefits from their state,” CNBC reported.

The federal payouts also delivered $300 per week extra to people collecting traditional state unemployment benefits to bolster what program proponents say was low payments from the states.

The programs, however, came to an end Labor Day weekend. Ocasio-Cortez believes the programs should be reinstated. Her Extended Unemployment Assistance Act of 2021 would change the expiration date of the benefits from Sept. 6, 2021 to Feb. 2, 2022.

Payments would be made retroactively for already-passed weeks in which the unemployed did not receive the benefits. “We can’t let pandemic unemployment assistance lapse when we’re still recovering from the cost effects of the pandemic,” Ocasio-Cortez said.

Some Republican legislators, along with certain business owners and hiring managers, have said federal unemployment insurance was a key factor in driving the current labor shortage in the U.S. With some earning more on unemployment than they would on the job, critics of the programs say the federal compensation discouraged people from looking for work. Shortages have been particularly pronounced in certain states.

However, some studies have found that in states where the federal unemployment insurance programs were ended early by state officials, there were no appreciable gains in hiring. Workers have named health concerns related to COVID-19 and childcare as top issues they consider when weighing their decision to seek employment.

The Biden administration opted to allow the federal unemployment insurance programs to end in early September as planned. Ocasio-Cortez’s extension amendment is likely to encounter stiff resistance from Republicans, and it’s uncertain if it will pass and become law – something the legislator acknowledges.

Nonetheless, she said she “simply could not allow this to happen without at least trying” to extend the programs.