The Trump administration appears to have walked back its plan to require states to chip in for enhanced unemployment benefits after an outcry from governors, including Gavin Newsom of California, Andrew Cuomo of New York and Arkansas' Asa Hutchinson.
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Hutchinson and Cuomo, a Republican and a Democrat, wrote that they were "concerned about the significant administrative burdens and costs this latest action would place on the states" on Monday.
“The best way forward is for the Congress and the administration to get back to the negotiating table and come up with a workable solution, which should provide meaningful additional relief for American families," Cuomo and Hutchinson said in the joint statement. "NGA has requested $500 billion in unrestricted state aid and NGA continues to urge Congress and the White House to reach a quick resolution to provide immediate assistance to unemployed Americans."
Cuomo said the executive order could cost the state $4 billion, which would be "impossible," WSTM reported. In California, Newsom said his state would be unable to pay the $700 million per week that the order originally called for, The Mercury News reported.
When announced last week, President Trump's executive order required states to pay for 25% of $400 weekly unemployment benefits, while the federal government would pay for 75%. On Tuesday, White House economic adviser Larry Kudlow indicated the administration would consider any $100 in unemployment insurance a state contribution.
"We modified slightly the mechanics of the deal," Kudlow said. "States can still, if they put another $100 in to raise the benefit more generally, that's fine. ... Any state who put in $100 before, and every state did, they will then qualify for the extra $300."
FOX Business' inquiries to the offices of Newsom and Cuomo were not immediately returned.