Happy Friday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL—Half of states run out of funds for Trump’s $300 unemployment expansion: Half of all states have depleted their funding for the extra $300 in weekly unemployment benefits that President Trump ordered after failing to strike a deal with Congress.
- A congressionally approved expansion of benefits this spring provided unemployed Americans with $600 more in weekly unemployment payments, but that expansion expired in July.
- Democrats pushed to renew the benefits, but Republicans argued they were too high and discouraged people from returning to work.
- After the unemployment boost expired, Trump signed an executive order to retool Federal Emergency Management Agency (FEMA) funds for an additional $300 in weekly benefits.
Unemploymentpua.com, a website that follows the minutia of state-level COVID-19 unemployment relief programs, found that 25 states had reached their funding limit, though only seven had already sent out their final payments. The Hill’s Niv Elis has more here.
LEADING THE DAY
EU appealing ruling in Apple tax case: The European Union announced on Friday that it will appeal a July court ruling that annulled its 2016 finding that Apple owes Ireland up to 13 billion euros in unpaid taxes.
The European Commission, the EU’s executive arm, said it is appealing the EU general court’s opinion to the European Court of Justice, the EU’s highest court.
The commission “respectfully considers that in its judgment the General Court has made a number of errors of law,” Margrethe Vestager, executive vice president of the commission, said in a statement.
The Hill’s Naomi Jagoda walks us through the case here.
House Democratic coronavirus relief package to provide more aid for airlines: The House Democratic emergency coronavirus relief package, which has not yet been unveiled, includes additional funding for airlines, two sources told The Hill.
Speaker Nancy Pelosi (D-Calif.) had tasked committee heads with drafting a package this week and Ways and Means Chairman Richard Neal (D-Mass.), who is leading the charge, said the package could receive a vote by Oct. 2.
- Under the terms of the CARES Act relief funding that passed this spring, airlines are prohibited from firing or laying off any employees until Oct. 1. Once that deadline passes, workers in the industry are expected to take a hit, barring new assistance from the government.
- On Oct. 1, American Airlines expects to ax 19,000 jobs, and United Airlines said it plans to cut 16,370. Delta Air Lines will delay the effective date for a potential 220 pilot furloughs to Nov. 1 but will not furlough any flight attendants and front-line workers in 2020 due to the many employees who opted for early retirement.
“We have been told that airline worker relief is in the package and are grateful for the strong, bipartisan support. We are hopeful that this is the start of a negotiation that will help our industry and others in distress,” Nicholas Calio, head of the industry group Airlines for America, told The Hill in a statement. The Hill’s Alex Gangitano has more here.
ON TAP NEXT WEEK
Tuesday:
- Federal Reserve Board Vice Chair Richard Clarida delivers remarks at the 2020 U.S. Treasury Market Conference, 11:40 a.m.
- The House Financial Services Committee’s task force on financial technology holds a hearing on the legal framework for digital lending and payments processing, 12 p.m.
- Fed Vice Chair of Supervision Randal Quarles discusses financial regulation at the Harvard Law School and Program on International Financial Systems, 1 p.m.
- The Wilson Center hosts a panel discussion on Mexico’s perspective on labor provisions included in the U.S.-Mexico-Canada Agreement, 1 p.m.
- Quarles will also discuss financial stability during an event held by the Center for Financial Policy at the University of Maryland, 3 p.m.
Wednesday:
- The Washington International Trade Association hosts a webinar entitled “Reengaging the Asia-Pacific on Trade: A TPP Roadmap for the Next Administration,” 9 a.m.
- The House Small Business Committee holds a hearing on COVID-19’s impact on small businesses within the food system, 10 a.m.
- Federal Reserve Board Governor Michelle Bowman speaks at a conference on community banking, 1:40 p.m.
Thursday:
- The House Small Business Committee holds a hearing on preventing abuse of the Paycheck Protection Program and Economic Injury Disaster Loan program, 10 a.m.
- The House Select Committee on the Climate Crisis holds a hearing on the financial system and economic opportunity, 2 p.m.
- Fed Governor Bowman speaks about the role of community banks in providing equitable mortgage access, 3 p.m.
GOOD TO KNOW
- A group of bipartisan House and Senate lawmakers on Friday introduced legislation to increase resources to help local government, small businesses and nonprofit groups defend themselves against cyberattacks.
- Sen. Elizabeth Warren (D-Mass.) and Rep. Ro Khanna (D-Calif.) are asking the Pentagon’s internal watchdog to investigate how the department used $1 billion in coronavirus relief funds.
- Politico: “Fannie Mae and Freddie Mac, the government-run companies that stand behind about half of the $11 trillion U.S. mortgage market, pose a potential danger to the stability of the broader financial system, a Treasury-led panel said today.”
ODDS AND ENDS
- Six months after states began issuing stay-at-home orders, many employees have settled into working-from-home routines that are likely to persist in some form beyond the pandemic. But with that seismic shift comes concerns about productivity, fatigue and cybersecurity.
- Florida is lifting all coronavirus restrictions on restaurants and bars effective immediately, with Gov. Ron DeSantis (R) saying he is also prohibiting local governments from closing businesses or imposing any restrictions without justification.
Recap the week with On The Money:
- Monday: Shutdown clash looms after Democrats unveil spending bill | CBO: $900B a year needed to stabilize post-crisis debt | Airline CEOs plead with Washington as layoffs loom
- Tuesday: Powell, Mnuchin stress limits of emergency loans | House seeks to salvage vote on spending bill | Economists tell lawmakers: Kill the virus to heal the economy
- Wednesday: House panel pulls Powell into partisan battles | New York considers hiking taxes on the rich | Treasury: Trump’s payroll tax deferral won’t hurt Social Security
- Thursday: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline