Bill Overview
Title: Continued Waiver of Interest on State Unemployment Loans during the Pandemic Act
Description: This bill extends the waiver on interest on State Unemployment Loans from September 6, 2021, to September 30, 2022.
Sponsors: Rep. Davis, Danny K. [D-IL-7]
Target Audience
Population: global population potentially affected by changes to state budgets through interest waivers on unemployment loans
Estimated Size: 70000000
- State unemployment funds borrow money to cover benefits when state funds fall short.
- Under typical circumstances, states must pay interest on these loans, potentially affecting state budgets.
- The waiver of interest saves states money, which can be redirected to other necessary expenses or services, including unemployment benefits.
- States without interest payments could maintain or improve their social service provision without budget reallocations.
- During the pandemic, more individuals have relied on unemployment benefits due to increased joblessness.
Reasoning
- The policy targets state budgets and the provision of unemployment benefits, indirectly affecting individuals who rely on these services.
- The budget is able to cover the interest on loans, meaning states could potentially reallocate or avoid cuts to essential services.
- Individuals' self-reported wellbeing can be influenced by the economic environment and security provided through unemployment benefits.
- People from various backgrounds and different levels of dependence on state services will experience different impacts.
- Most individuals will perceive indirect impacts through the state's ability to fund other programs or services.
- A few individuals will be directly impacted if the policy helps maintain the quality of services they depend upon.
Simulated Interviews
Unemployed (Los Angeles, CA)
Age: 37 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- I've been struggling to make ends meet since I lost my job during the pandemic.
- Knowing that the state won't have to pay interest on these loans might mean more funds for continued unemployment assistance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Factory Worker (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I just got laid off and am worried about not being able to find work soon.
- It's good to know the state might have more room to support people like me until we get back on our feet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Freelance Graphic Designer (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- I don't rely on unemployment benefits, but it's good to know that others who do might have more support.
- Things like this help stabilize the economy overall, which benefits everyone indirectly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Elementary School Teacher (Chicago, IL)
Age: 53 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- My job hasn't been affected much, but a lot of my students' families are struggling.
- Keeping money circulating in the community helps us all, so this policy is probably a good thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Small Business Owner (New York, NY)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- My business took a hit, but I'm focusing on recovery now.
- Anything that helps unemployed people eventually helps businesses like mine, as they'll be spending money again.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.5 years
Commonness: 16/20
Statement of Opinion:
- I'm not directly affected anymore, but I worry about my kids and grandkids.
- If the state can avoid some financial strain, I'd hope resources are better managed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
IT Specialist (Birmingham, AL)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- I personally feel secure but understand others don't.
- Waiving the interest might not seem like much, but it prevents other cuts and keep services intact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Barista (Seattle, WA)
Age: 24 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- My hours are up and down, and I'm worried about paying rent.
- The state not having to pay interest might mean better support if I end up needing unemployment benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Construction Worker (Houston, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- I've been back at work but remember how hard it was without a full paycheck.
- It’s a relief knowing the system might catch me thanks to policies like this.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Healthcare Worker (Miami, FL)
Age: 33 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- It's been tough seeing people struggle so much.
- Extended support might not affect my pay, but it affects my community, which is important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $1500000000 (Low: $1200000000, High: $1800000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The ability of states to use funding flexibility to manage pandemic-related expenditures.
- Potential impact on federal requirements for states to resume interest payments post-waiver period.