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First, the Memorandum requires that to be eligible, an individual must receive at least $100 per week in regular state unemployment compensation assistance (up from $1). The Disaster Relief Memorandum makes two significant changes in eligibility compared to the $600 supplemental benefit under CARES. The Disaster Relief Memorandum directs FEMA to provide benefits from the Department of Homeland Security’s Disaster Relief Fund and directs states to use their Coronavirus Relief Fund allocation to provide financial relief to unemployed Americans affected by COVID-19, principally through an up to a $400-per-week supplemental unemployment compensation benefit. Disaster Relief/Unemployment Insurance BenefitsĪs most employers and others are aware, the CARES Act provided a $600 per week federally funded unemployment compensation assistance to an eligible unemployed person, in addition to standard state unemployment benefits. The Executive Order (the “Housing Executive Order”) directs various Cabinet and Executive Agency heads to find means of limiting evictions and foreclosures.Īlthough none of the Executive Orders are currently operational, the constitutionality of these actions has been questioned, and legal challenges have been threatened and may be instituted, it is important for you to have a basic understanding of these actions. A third Memorandum was issued to the Secretary of Education (the “Education Memorandum”) and extends student loan payment deferment and reductions of student loan interest rates to zero until December 31, 2020. The second Memorandum was issued to the Secretary of Treasury (the “Tax Memorandum”) and temporarily defers the collection and payment of certain payroll taxes from compensation paid between Septemand December 31, 2020. One Memorandum was issued to the Secretary of Labor, the Secretary of Homeland Security, and the Administrator of the Federal Emergency Management Agency (“FEMA”) (the “Disaster Relief Memorandum”) and provides for supplemental unemployment payments to certain eligible claimants at up to $400 per week until the earlier of when the $25 billion allocated by the President is depleted or December 6, 2020. Seyfarth Synopsis: On August 8, 2020, President Trump issued an Executive Order and three Memoranda to his Cabinet and Executive Agency heads (collectively, the “Executive Orders”) that provide or extend COVID-19 relief to individuals and businesses. Visit our Beyond COVID-19 Resource Center.