National Economic Council Director Larry Kudlow said Americans can expect the additional $600-per-week unemployment bonus to run out at the end of July.
During an interview with CNN host Jake Tapper during Sunday’s “State of the Union,” Kudlow said the federal assistance program was “slated to run out in six weeks.”
In the exchange, Tapper asked what Americans can expect going forward as some states have begun reopening businesses and entertainment venues.
“Should American families that are receiving these extra $600 checks right now expect that money to stop in August?” the host asked via the Independent Journal Review.
Kudlow specified unemployment benefits would not stop but the additional $600 for unemployment would be ending at the end of next month.
“I mean, we’re paying people not to work. It’s better than their salaries would get,” he said, noting some people were receiving more money staying home than they would be if they returned to work. “That might have worked for the first couple of months. It’ll end in late July.”
Politico reports the economic director also said the Trump administration was working on a “reform measure” to get people to get back to work.
“It will not be as large [as the additional $600] but it will create an incentive to work,” he said. “That goes along with the other incentives we’ve generated, the tax rebates and, most particularly … the Payroll Protection Program, which I think was a huge success.”
Kudlow was pressed by CNN host Jake Tapper on the idea that Americans don’t want to return to work. Tapper pointed out that some Americans’ jobs aren’t coming back — a point Kudlow called “fair.”
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“I personally agree with you. I think people want to go back to work,” Kudlow responded. “I think they welcome the reopening of the economy, and I think they’re anxious to get out and about.”
“However, at the margin, incentives do matter,” he added. “We have heard from business after business, industry after industry, and there’s already some evidence that this effect is taking place.”
The House-passed Heroes Act would extend the $600 additional weekly unemployment benefit through the end of January 2021. The Senate has not passed similar legislation.