Texas to end federal COVID-19 unemployment benefits, Governor Greg Abbott says
Texas is opting out out of federal unemployment compensation related to COVID-19 starting June 26, Gov. Greg Abbott announced Monday.
The funds include $300 in weekly unemployment supplement payment from the Federal Pandemic Unemployment Compensation program. Abbott wrote to the U.S. Department of Labor Monday to provide notice that the state would end its participation in the federal benefits, citing a “thriving” economy.
“The Texas economy is booming and employers are hiring in communities throughout the state,” Abbott said in a statement.
He continued that there are nearly as many job openings in Texas as the number of people receiving benefits.
“That assessment does not include the voluminous jobs that typically are not listed, like construction and restaurant jobs,” Abbott said. “In fact, there are nearly 60 percent more jobs open (and listed) in Texas today than there was in February 2020, the month before the Pandemic hit Texas.”
The announcement comes after Texas business leaders wrote to Abbott on May 13 requesting the state end participation in the $300 payments. The letter from the Texas Association of Business and 38 other professional associations and chambers of commerce points to the payments as a “major barrier” for employers working to fill job openings.
“With COVID-19 on the decline and job openings on the rise, we believe it is time for Texas leaders and the Texas Workforce Commission to re-examine unemployment benefits and look for new opportunities to support working families,” the letter reads.
A spokesperson for the Fort Worth Chamber of Commerce in an email said the chamber does not have a position or comment, as it’s still learning more.
In explaining his reasoning for ending the pandemic-related federal benefits, Abbott cited Texas Workforce Commission figures that show nearly 45% of posted jobs offering pay over $15.50 per hour. About 2% of the jobs pay around the minimum wage, according to Abbott’s office.
Abbott’s office also said the action was needed to address fraudulent claims, pointing to estimates from the Texas Workforce Commission that nearly 18% “of all claims for unemployment benefits during the pandemic are confirmed or suspected to be fraudulent, which totals more than 800,000 claims, worth as much as $10.4 billion, if all claims had been paid.”
“At this stage of opening the state 100 percent, the focus must be on helping unemployed Texans connect with the more than a million job openings, rather than paying unemployment benefits to remain off the employment rolls,” a news release from the governor’s office reads.
Texas is one of at least 20 states, all with Republican governors, planning to end the federal benefit, according to Forbes.
Texas Workforce Commission spokesperson James Bernsen in a statement said the commission and its workforce solutions partners will “continue to offer services to assist individuals in finding employment and their training needs.”
“We will be providing additional information to claimants as we transition away from these programs,” he said.
Workforce Solutions for Tarrant County Executive Director Judy McDonald said it has six Workforce Centers throughout Tarrant County that can assist job seekers. Workforce Solutions for Tarrant County is also holding two virtual job fairs in June. More information is available on www.workforcesolutions.net or at 817.413.4000.
The Monday announcement was met with backlash from Rick Levy, president of labor federation Texas AFL-CIO, who called Abbott’s decision “callous.”
“We can’t even imagine the thinking behind Gov. Abbott’s callous decision to strip the remaining federal Unemployment Insurance benefits out of the pockets of Texas working families,” Levy said in a statement. “If he took the time or had any interest in understanding the challenges working people face, Gov. Abbott would see clearly that folks across Texas desperately need these funds as they try to navigate their way through the economic carnage of the pandemic.”
This story was originally published May 17, 2021 at 3:13 PM with the headline "Texas to end federal COVID-19 unemployment benefits, Governor Greg Abbott says."
