$100 billion of federal jobless aid has yet to be paid

With millions of Americans set to lose $600 a week in extra federal unemployment benefits — an economic lifeline during the pandemic — many thousands have yet to receive that money.

State unemployment agencies have been so swamped with claims that more than $100 billion of benefits owed still haven’t been paid, according to Bloomberg calculations based on Treasury and Labor Department data.

Those billions should eventually be distributed even if Congress doesn’t act to extend the benefits, set to expire Friday. But the delays underscore the magnitude of the nation’s jobless crisis, as well as the daunting bureaucratic challenges of coping with it.

Some out-of-work people have received only part of their promised benefits. Morgan Johnson, a single mother in Pennsylvania, said her extra benefits were halted because of suspected fraud. Calls to state agencies were met with busy signals. She hasn’t been paid in six weeks and is on the verge of “losing everything.”

The Treasury disbursed about $323 billion in unemployment benefits between the beginning of March and July 18, according to its daily statements. While a historic figure, the payout falls short of the total bill that should have reached an estimated $428 billion, according to Bloomberg calculations based on weekly unemployment filings and the average size of those claims.

The U.S. Department of Labor has previously said that using its weekly claims report, which delineates those filing for continuing benefits each week, was “not an effective data point to get at unpaid claims.” But with many states struggling to deal with an overload of claims now rising again, and national data still scant, the estimate gives a picture of the total bill facing the nation.