1M Californians will lose benefits day after Christmas if Congress doesn't pass COVID-19 relief bill
OAKLAND, Calif. (KGO) -- The race for a COVID-19 vaccine is reaching the finish line - but so are unemployment benefits for millions of Americans.
Unless Congress acts fast, nearly one million Californians will suddenly lose their unemployment benefits on the day after Christmas - casting yet another bleak shadow over the 2020 holiday season.
RELATED: Bank of America reveals it paid millions to 'double-dipping' EDD fraudsters
And it's not too far ahead. Congressional leaders are still bickering over a possible relief package. It means thousands of gig workers, contractors, the self employed, and part timers - would lose the one lifeline they have.
"This is my last haircut and color for the year," Alicia Orabella is closing her Oakland hair salon. "I'm really bummed and I'm scared," she says.
With the latest shutdown, Orabella is counting on unemployment to kick in.
"A little anxiety today for sure. I kept looking at the clock," Orabella says.
But without quick action from Washington, that lifeline will suddenly drop off.
Andrew Stettner studies unemployment policies as a senior fellow at the Century Foundation in Washington. "The benefits will actually end the day after Christmas. And it's a hard cutoff," he says.
EXCLUSIVE: Insiders reveal how scammers are stealing millions in CA unemployment benefits
He says many don't see what's coming.
"It is kind of a cliff that people were ignoring. They're starting to become aware of it, but I think it's gonna hit hard as we get closer to the holidays," says Stettner.
Benefits will end abruptly on Dec. 26 for workers getting Pandemic Unemployment Assistance, and a 13-week extension of benefits - the lifelines known as "PUA" and "PEUC."
"Anyone on any of the programs that have a 'P' in them, PEUC or PUA, those benefits will not be available after Dec. 26," Stettner says.
That means benefits end for millions of gig workers, contractors, the self employed, business owners, part timers and caregivers - groups that were not covered under traditional unemployment.
RELATED: 'People need help': As many as 1 in every 3 EDD claims is fraudulent, security firm says
It also ends a special 13-week extension for those who ran out of the usual 26 weeks of benefits. That goes away even if you didn't use all the extra weeks.
"People are going to be in a very negative position. We need to underscore: poverty is going to go up. Hardships are going to go up. Children are going to be hurt," says Stettner.
The California Policy Lab estimated 750,000 Californians will lose benefits without a new relief package. However, that number could easily top one million due to the latest shutdown.
However, those on "regular state unemployment" won't face these cutoffs - at least not yet.
VIDEO:Woman watches via text as scammer drains EDD benefits
They can get a 13-week extension under a program called "FED-ED,'' which kicks in during periods of high unemployment. That will cover most Californians until mid-March.
But - it would still leave millions with no income, and leaders still bickering.
"Why are they fighting? We're all out here choking," says Alicia Orabella.
Advocates are urging workers to apply now for other benefits like Medicaid and food stamps. If you're a gig worker or contractor about to lose benefits, we're here to help; contact 7 On Your Side at the link below.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
Have a question for Michael and the 7 On Your Side team? Fill out the form HERE!
7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case.
App users: For a better experience, click here to view the full map in a new window
RELATED STORIES & VIDEOS:
- EDD shuts down 350,000 accounts for suspected fraud, but legitimate workers still left with no money
- Unemployment claims paused for 2 weeks as report reveals 600K awaiting benefits in EDD backlog
- Coronavirus employment recovery will not be equal across Bay Area, new report predicts
- $2.5 million in EDD fraud leads to arrest of 44 suspects in Beverly Hills, police say
- CA begins sending extra $300 per week in unemployment benefits, but many will not receive the supplemental aid
- California lawmakers to conduct emergency audit of EDD
- California woman's stolen information used to collect thousands in unemployment benefits
- Proposed $300 unemployment benefit 'inadequate,' Newsom says CA working on solutions
- California EDD: The most commonly asked questions we get about unemployment and PUA
- California woman shares hack for getting through EDD's overloaded unemployment helpline
- Florida man erroneously receives 12 letters from the California EDD
- California state senators request Newsom create 24-hour helpline for EDD
- Governor Gavin Newsom unveils new task force to tackle EDD backlog
- Out-of-work Californians finally receive benefits, only to be mysteriously cut off
- Unemployed workers share how they got through EDD system to finally receive benefits
- FAQ with EDD: From getting through on the phone to $600 payments, 7 On Your Side gets your questions answered
