When will Indiana COVID-19 Unemployment Payments Stop?

September 1, 2021

Indiana COVID-19 unemployment payments are currently scheduled to stop when the federal program ends in September 2021.  Will the payments really stop or will they continue?  It all depends on whether more Federal aid is extended by Congress.  An extension of aid, however, appears unlikely.

The $300 Extra Indiana COVID-19 Unemployment Stops in September

Covid Unemployment benefits economic turmoilCurrently, the $300 weekly extra unemployment payments are scheduled to stop in Indiana in September.   There are approximately 220,000 residents receiving these payments at this time.   The bitter reality of these payments stopping may not be fully recognized until after the payments come to an end.

If the payments stop, there could be a massive economic shift.   Budgets may fail.  Home payments may get behind.  Evictions and foreclosures could also begin to rise.  Bankruptcy could also be on the rise.  On a more positive note, a large contingent of workers may return to the workforce. Currently, there is a worker shortage in Indiana.

Could COVID-19 Unemployment Payments Be Extended?  It’s Unlikely

However, the Federal program may be extended.  Congress may act before Labor Day to extend benefits.  Although there is certainly some support in Congress, many lawmakers both Republican and Democrat have no desire to extend the program.  In fact, President Biden himself cited the 5.4% unemployment rate as a reason to end the program.  He is currently not supporting the Federal extension.  Worker shortages are common today throughout the United States even amidst an apparently high unemployment rate.

President Biden has also supported states returning to stricter enforcement of unemployment guidelines as states have done in the past.   Biden is also advocating for unemployment reform, stating that the current system is outdated and encourages fraud.   State Governors in 26 states have already sought early termination of the Federal unemployment benefits, similar to Indiana.   A recent court decision in Indiana also appears to pave the way for Indiana to deny an extension of federal benefits.   With these trends on every political level, it appears that COVID-19 bonus payments will soon come to an end.  Sufficient support to extend the payments will unlikely manifest in time before the deadline in September arrives.

Read more about Indiana Unemployment Norms here.


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