Tenants Nationwide Behind on Rent Despite Billions of Unspent Federal Aid

Low-income tenants across the country are behind on rent payments because of the pandemic, even as billions of dollars appropriated by Congress to assist renters remain untouched.

About $5.2 billion of the $46.6 billion — roughly 11% — set aside for the Emergency Rental Assistance (ERA) program has been distributed to low-income tenants, according to the most recent data released by the Department of the Treasury on Wednesday. House Financial Services Committee Ranking Member Patrick McHenry characterized the Biden administration’s handling of the ERA program as “gross mismanagement.”

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Jobless Claims Climb with Pandemic Unemployment Benefits Set to Expire

Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.

The number of Americans filing new unemployment claims increased to 353,000 last week as the economy continues its recovery from the coronavirus pandemic.

The Bureau of Labor Statistics figure released Thursday presents a slight increase in the number of new jobless claims compared to the week ending Aug. 14, when 349,000 new jobless claims were reported. The Aug. 7 to Aug. 14 figure was revised from the 348,000 jobless claims initially reported last week.

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Biden Keeps Making the Same Dubious Jobs Claim

President Joe Biden repeatedly mischaracterized the job growth that has occurred since he took office, saying it is a product of his administration’s economic agenda, multiple media fact checkers have reported.

While the Biden administration has overseen the economic recovery during a period of large gains in the labor market, the White House hasn’t acknowledged that states reopening and ending pandemic-related business restrictions is likely the main catalyst for such growth. The president has also credited without evidence the $1.9 trillion American Rescue Plan, which he signed into law in March, for driving job growth.

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Atlanta, Dallas, Tampa, and St. Louis Among the Cities Experiencing the Highest Consumer Price Spikes

Throughout the COVID-19 pandemic, the Federal Reserve Bank and Congress have taken unprecedented steps to stabilize the economy after entire industries and sectors ground to a halt last year amidst the public health crisis. The Fed has kept interest rates near zero, created lending programs to pump trillions of dollars into the economy, and bought securities to support financial markets. Congress passed three major COVID-19 stimulus packages in response to the crisis: the $2.2 trillion CARES Act in March 2020, the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, and the $1.9 trillion American Rescue Plan in March 2021.

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Virginia Businesses Want More Unemployment Insurance Funding to Avoid Tax Hike

In an effort to prevent a future tax hike on Virginia businesses, Gov. Ralph Northam proposed allocating $862 million in federal relief money to the Unemployment Insurance Trust Fund, but a small business association is warning it might not be enough.

The Unemployment Trust Fund, which provides unemployed Virginians with benefits, is funded primarily through payroll taxes from employers. During the COVID-19 pandemic, Virginia’s fund dried up and the state was forced to borrow money from the federal government. Unless the losses can be fully offset, business taxes would automatically increase to maintain the fund because of the state’s funding formula.

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Virginia Gov. Northam Proposes $862 Million of American Rescue Plan Act Funds to Partially Refill Unemployment Trust Fund

As part of his “Investment Week” announcing American Rescue Plan Act (ARPA) allocation proposals, Governor Ralph Northam announced $862 million for Virginia’s unemployment insurance trust fund, depleted during COVID-19.

“Shoring up the Commonwealth’s unemployment insurance trust fund is a smart investment that will prevent Virginia businesses from paying higher taxes and allow our economy to continue surging,” Northam said in a Tuesday announcement.

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Biden Administration Unveils ‘Historic’ Investment for Communities That Could Create 300,000 Jobs in the ‘Near Term’

President Joe Biden’s administration announced that it would give $3 billion in coronavirus stimulus funds to approved local communities across the country.

The program dubbed “Investing in America’s Communities” amounts to the largest initiative of its kind in decades, according to the Department of Commerce. Local governments and organizations nationwide impacted by the coronavirus pandemic are able to apply to receive the federal funds.

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Virginia Ends Fiscal Year 2021 with $2.6 Billion Revenue Surplus

Virginia ended Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history, with a 14.5 percent revenue growth over FY 2020.

“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Governor Ralph Northam said in a press release.

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Advocates Say Millions of Dollars Needed to Help Virginia Tourism Recover

Virginia’s economy is recovering, but Virginia Tourism Corporation (VTC) President Rita McClenny told legislators this week that a major infusion of $50 million is needed to help the struggling tourism sector.

“The $27 billion tourism engine stalled out in 2020 as a result of the global pandemic. Every component sector was negatively impacted: lodging, food service, attractions, business, conventions,  events, transportation, entertainment and recreation. The entire sector needs financial recovery support,” McClenny told the Senate Finance and Appropriations Committee.

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Virginia Politicians Call for Action to Make Sure Unemployment Benefits Don’t Keep People from Getting Jobs

bluecollar

Virginia politicians are calling on Governor Ralph Northam to take steps to make sure unemployment benefits aren’t preventing potential employees from returning to work. Senate Republicans want to use American Recovery Plan funds to create “Back-to-Work” bonuses to incentivize current unemployment recipients to re-enter the workforce. Congresswoman Elaine Luria (D-Virginia-02) is calling for better enforcement of unemployment benefit eligibility rules.

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Warner, Wexton Highlight American Rescue Plan Opportunities for Broadband Expansion and Small Business Relief

Senator Mark Warner (D-Virginia) and Congresswoman Jennifer Wexton (D-Virginia-10) made two stops in northern Virginia on Friday and Monday discussing impacts of COVID-19 and financial opportunities from federal relief.

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Virginia Legislators Lay Out Priorities for American Rescue Plan Funds

The American Rescue Plan will provide $7.2 billion for Virginia: $2.9 billion allocated for municipalities, and $4.3 billion for the state government, according to a Tuesday announcement from Senators Mark Warner and Tim Kaine. On Wednesday, Governor Ralph Northam and Democratic General Assembly leaders released their priorities for the $4.3 billion, including upgrading public health infrastructure, funding the Rebuild Virginia small business recovery plan, adding funds to the Unemployment Trust Fund, modernizing public schools, and deploying broadband across Virginia.

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Judge Grants Virginia Employment Commission Brief Extension to Respond to Class-Action Lawsuit over Slow Unemployment Claims Processing

Virginia is trailing the rest of the United States in processing certain unemployment claims. That’s led to a class-action lawsuit against the Virginia Employment Commission (VEC), filed in April. VEC Commissioner Ellen Hess asked for an extension until the end of May to respond to the lawsuit, but on Wednesday, a district judge ruled that the VEC could only have a four-day extension from May 7 until May 11.

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Virginia Applications Open for New Restaurant Revitalization Fund

Restaurants can now apply for up to $10 million in COVID-19 relief funds through the Restaurant Revitalization Fund (RRF), a part of the recently passed American Recovery Plan (ARP). The RRF will provide a minimum $1,000 in funds to eligible restaurants and similar businesses to replace funds lost due to the pandemic.

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13 States Sue Biden Administration, Demand Ability to Cut Taxes

West Virginia Attorney General Patrick Morrisey

Thirteen states sued President Joe Biden’s administration over an American Rescue Plan provision prohibiting states from cutting taxes after accepting coronavirus relief funds.

The 13-state coalition argued that the provision included in the Democrats’ $1.9 trillion coronavirus relief package preventing states from cutting taxes if they accept relief from the federal government is unconstitutional. The coalition, led by Republican West Virginia Attorney General Patrick Morrisey, filed the federal lawsuit Wednesday evening in the U.S. District Court for the Northern District of Alabama.

“Never before has the federal government attempted such a complete takeover of state finances,” Morrisey said in a Wednesday statement. “We cannot stand for such overreach.”

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Northam, Beyer and Buttigieg Announce $3.7 Billion Transforming Rail in Virginia Initiative

New U.S. Transportation Secretary Pete Buttigieg and Congressman Don Beyer (D-Virginia-08) joined Governor Ralph Northam at Alexandria’s Amtrak station Tuesday. Northam announced a partnership with Amtrak, CSX and the Virginia Rail Express (VRE).  The partnership includes a $3.7 billion investment into expanding infrastructure, funded by Amtrak, state, and regional partners.

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General Assembly Will Need Another Session to Allocate American Rescue Plan Funds

The General Assembly will probably have another special session in 2021, which is necessary to allow the legislature to allocate federal funds granted to the Commonwealth in the $1.9 trillion American Rescue Plan (ARP) passed by Congress and signed by President Biden Thursday.

Virginia Secretary of Finance Aubrey Layne said, “It will require another session, but it probably will be sometime in the future weeks or possibly months because the Governor has made no decision. But part of that is because we have not received a specific certification on the actual monies yet from the Feds.”

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