'A growing sense of panic' fills Americans with no new federal coronavirus subsidy in sight

If US subsidies end, will there be another stimulus package? 1:20

Washington (CNN) - Four months have passed since most of the US $ 1,200 stimulus checks from the federal government were issued. The federal boost of $ 600 a week in unemployment benefits expired three weeks ago, along with a moratorium on evictions. Many small businesses have already spent their federal emergency loan money.

While President Donald Trump has attempted to fill some of the void through executive action, discussions in Congress about reinstating any of those programs or creating other new measures have stalled, and no progress is expected until September at least, even as the economy continues to falter.

Since late July, about a dozen more people have turned up each day for a free bagged lunch at a center for the homeless in Northwest Washington, where tents dot parks and neighborhood corners. More than a third are new to Charlie's Place, which also distributes clothing and groceries.

'People have lost their jobs. They no longer receive stimulus money. They just couldn't hold out, ”says Reggie Cox, the center's director.

There is support from both parties to send out a second round of checks, extend at least some unemployment benefits, and allow small businesses to apply for another loan in order to pay their workers. But the Republicans, who control the Senate, and the Democrats who run the House, remain widely separated on the details even after weeks of talks in July.

'Whatever your political affiliation, how could you not want to help these people? It makes good political sense to do the right thing here, ”Cox said. "Our guests certainly think that way."

Millions of people are still unemployed

The financial aid package that Congress passed in March got money to people fairly quickly at a time when lawmakers weren't expecting the pandemic to last as long as it has. This more than offset the decline in earnings, according to a report by researchers from the University of Chicago and the University of Notre Dame.

But the economy is far from recovering. Consumer spending is down 8% since January and the number of small businesses open is down nearly 20%. The unemployment rate of 10.2% remains higher than at any other time during the Great Recession.

Some people still wait weeks to receive their unemployment benefits. Almost a million people filed for unemployment for the first time last week and more than 15 million were still claiming benefits. Many states remain overwhelmed by the unprecedented number of applications they must process.

But unlike the beginning of the year, when people were also receiving benefit checks, state unemployment aid may be the only safety net program they can take advantage of right now, just as some lose protection against eviction.

"There is a growing sense of panic," said Behnaz Mansouri, an attorney for the Unemployment Law Project in Washington, which is helping people fight denied claims.

“Having received various supports, people were managing their fear. But they no longer have that financial safety net, "he said.

Trump's decree is causing confusion

With Congress stalled, Trump signed several decrees, attempting to deliver financial aid to Americans. But given the executive branch's limited authority to spend money, the stock does little of what it promised.

Trump said in a memorandum that he would provide an additional $ 400 a week in unemployment benefits, with the intention of replacing the $ 600 benefit the week that expired on July 31.

But in reality, the benefit will total $ 300 a week unless cash-strapped states provide the additional $ 100 benefit.

Also, it could take weeks before someone receives that money because states will have to put in place an entirely new system to manage those benefits, and the money may only last a few weeks.

As of Tuesday, seven states had applied for the new funds, according to the Labor Department. Florida, where the maximum state unemployment benefit is one of the lowest in the country, was not one of them. States have until September 15 to apply.

"We get calls all the time," Laurie Yadoff, an attorney with Coast to Coast Legal Aid of South Florida, said of the new benefit.

"They ask, 'What's going to happen to me?' They say they have late payments on their bills, interest penalties on their credit cards, and they owe it to the friends and family they borrowed from, ”Yadoff said. "They think I know what's going on and I don't know."

unemployment benefits