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Collins Expresses Concern Over Extending Supplemental Unemployment Insurance

Jun 4, 2020
Press Release

WASHINGTON — Rep. Doug Collins (R-Ga.) today joined Rep. James Comer (R-Ky.) and a number of colleagues in sending a letter to House and Senate leadership outlining their concerns with proposals to extend the $600 supplemental unemployment insurance (UI) provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

As businesses across the country are beginning to reopen, a number of employers have expressed concern over the negative impact of supplemental unemployment insurance. Because of the unemployment increase included in the CARES Act, many employers are now finding their employees do not want to return to work as they are receiving more in unemployment than they were making in wages.

“At this critical point in reopening, our economy and our business owners cannot afford to have their employees earning a substantial income from their fellow taxpayers,” they wrote. “Small businesses receiving loans from the Paycheck Protection Program (PPP) are especially harmed if they cannot provide competitive wages and persuade their employees to return to work within the allotted time frame for PPP forgiveness.”

“The supplemental UI was intended to be a lifeline for those whose employer was unable to retain them, not set individuals on a path to continued reliance on government assistance,” they continued. “If these benefits are extended, it would only reinforce and deepen the structural issues and rampant abuse of our public assistance programs that existed prior to the coronavirus (COVID-19) pandemic.”

Read the full letter here.