Coronavirus Crisis Brings 1 Million Unemployment Claims In 12 Days

By Emily Hoeven/CalMatters

If the $2 trillion coronavirus stimulus package that the U.S. Senate passed late Wednesday night is passed by the House of Representatives and signed into law by President Donald Trump, California will receive over $10 billion in block grants, individuals will see up to a $600 increase in weekly unemployment benefits, and there will be other “specific, very direct support” to the state, Gov. Gavin Newsom said Wednesday.

Newsom said $5.5 billion would be allocated to the state and the rest to local governments. But he emphasized the importance of putting money directly in people’s pockets, saying that federal unemployment relief “cannot happen soon enough,” given that over 1 million unemployment insurance claims have been filed in California since March 13.

Many of the people filing for unemployment are still recovering from the 2008 recession, the governor added.

• Newsom: “People are older and still struggling. And so these are individuals that once again are disproportionately impacted by this moment. … We need to focus on those faces, their stories, not just the face of government, not just the face of business, but on the faces of individuals struggling day in and day out to make ends meet, struggling to feed their families, feed themselves.”

California currently provides weekly unemployment insurance ranging from $40 to $450. With the federal stimulus package, many Californians would receive more than $1,000 a week, Newsom said.

Yet California’s unemployment insurance system faces significant hurdles in meeting increased demand. A recent report from the nonpartisan Legislative Analyst’s Office anticipated delays “much longer” than three weeks for workers to receive first benefits. And if California decided to increase weekly benefit levels during the coronavirus crisis, the report said it could take the department a year to adjust because of technological limitations.

It’s unclear whether those limitations would also affect the rollout of federal unemployment insurance benefits, the Sacramento Bee reported.

Another way of putting money directly in people’s pockets: Newsom said Wednesday that JPMorgan Chase, Citigroup, Wells Fargo, US Bank and nearly 200 state banks and credit unions will provide a 90-day mortgage payment grace period for Californian homeowners directly impacted by coronavirus, CalMatters’ Laurel Rosenhall reports.

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