Why Republicans' Boosted Unemployment Proposal Just Isn't Good Enough

Millions of Americans have been grappling with unemployment since the COVID-19 pandemic took hold, and with the outbreak worsening in recent weeks, it's clear that the recession we've landed in will be with us for a while. That's bad news in light of the fact that the $600 weekly boost to unemployment benefits has just expired, leaving millions of jobless folks at a severe financial disadvantage.

On Monday, Republican lawmakers revealed their proposal for a COVID-19 relief package to follow late March's CARES Act -- the act that allowed for boosted unemployment in the first place. But while this new proposal does include extra money for the jobless, it falls short of providing adequate relief.

What Republicans' new plan entails

The new proposal, known as the HEALS (Health, Economic Assistance, Liability Protection, and Schools) Act, seeks to extend boosted unemployment to help the millions of Americans who are still out of work and might be for a while. But the $600 weekly boost, which expired over the weekend, won't be upheld in full. Instead, lawmakers are proposing a $200 weekly boost through September. Come October, that $200 would then be replaced by a new formula that seeks to provide benefits amounting to 70% of workers' lost wages.

Of course, any boost to unemployment is better than none at all. But given the dire financial circumstances so many jobless Americans have landed in through no fault of their own, a $200 weekly increase comes off as stingy.

When we factor in an extra $200 a week, the average worker on unemployment will wind up collecting about $521 a week, according to a CNBC analysis of jobless data from May. All told, workers on unemployment will be looking at a 43% pay cut compared to what they were able to collect while the $600 weekly boost was in play.

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