Writing in The Hill, co-author Jonathan Williams and ALEC Center for State Fiscal Reform Research Manager Thomas Savidge explain how the expanded unemployment insurance payments are incentivizing people not to work.
Recently, states have started to address this problem. Gov. Greg Gianforte of Montana and Gov. Henry McMaster of South Carolina led the way, stating that their two states would end participation in a range of federal programs created under the CARES Act last year and extended under ARPA, including the additional $300 per week for unemployment benefits authorized by ARPA.
Now 25 states have announced that they will stop giving expanded unemployment payments over the summer, with many states ending the payments in June. A new report from the Foundation for Government Accountability uncovered some fascinating information. As the first 22 states announced their withdrawal from the unemployment bonus payments, job applications immediately increased by 5 percent.