Hawaii’s massive unemployed population is dependent on federal aid, which is about to expire
HONOLULU (KHON2) – Monday’s announcement that the state’s tourism industry is scheduled to reopen on Jan.
Nearly 250,000 Hawaiian residents remain unemployed and their weekly federal government unemployment insurance plan will expire on July 31st.
Hawaii’s US Congressman Ed Case helped the House of Representatives pass a $ 3 trillion stimulus package called the HEROES Act in May, but the law stalled on Capitol Hill. As it is currently being written, the HEROES Act would send out economic checks of $ 1,200 and continue the weekly unemployment checks of $ 600 through January.
“Some of the senators, and certainly the president, simply did not support the idea of further emergency relief,” said Rep. Case. “Now you come to the fact that it is the federal government that is the only institution in our country that has the capacity and ability to truly provide stability as we go through an ongoing severe crisis.”
The federal government has the ability to run into debt that states cannot do.
Hawaii‘s tourism-based economy has been on hold since March, leading to inflated unemployment and billions in lost tax revenues.
The state of Hawaii is projected to be $ 132 million short in 2021, absorbing a billion losses each year, reaching $ 6.4 billion by 2026.
“We are harder hit than many parts of the country because we did the right things in the public health sector during this crisis,” said Rep. Case. “So the irony is that we have had one of the best public health responses and one of the worst economic outcomes as a result of doing the right thing.”
In place of the extra $ 600 a week in unemployment insurance, some Senate Republicans and President Trump have been promoting the idea of a return to work bonus. Case argues that with so many tourism-dependent jobs in Hawaii, the idea won’t work.
“How do you go back to work when there is no work there? That is the fundamental dilemma we have, ”said Rep. Case.
With arguments on both sides of the aisle about what the reopening did to spurn record high numbers of COVID-19 cases, Rep. Case believes the economy will not recover until the COVID-19 health crisis is resolved.
Until that happens, a quarter of a million Hawaiian residents will wait for the Senate, White House, and House of Representatives to come to an agreement on aid before they run out of time and money.
“I’m relatively optimistic that we can get a bigger package out by the end of this month,” said Rep Case. “I think the Senate decided after months of sitting that it might be necessary after all.”
The House and Senate begin a new legislative term on July 20, with Congress ending on July 31. The Senate will meet again from August 3rd to 7th.
