Senator Doug Jones Calls for More Federal Funding and Support for ADOL

U.S. Senator Doug Jones(D-Ala.)today is urging Senate leadership for additional federal funding and support for state departments of labor, which have been overwhelmed by the wave of unemployment insurance claims. This also comes as disturbing reports emerge out of Montgomery, where Alabamians have been camping out overnight outside of an unemployment claims center in search of help with their claims.

“As the nation continues to struggle with the health and economic repercussions of the coronavirus pandemic, Congress must do more to help those who are suffering from unemployment as a result. Alabama’s unemployment rate in May was 9.9%, and my home state is facing a 70% increase in the evictions of renters,”Senator Jones, a member of the Senate Banking Committee, wrote. “This hardship is sadly not unique to Alabama, and Americans across the country are struggling to pay their bills, to keep the lights on, and to put food on their tables.

A recent article in the Montgomery Advertiser detailed a line of unemployed Alabamians that has formed for weeks in a parking lot outside an Alabama Department of Labor (ADOL) claim processing center, with many sleeping outside overnight in the rain or participating in a “black market” system of selling spots in the line.

“While the ADOL has noted that an in-person presence is not required to file or resolve unemployment claims, technical glitches and difficulties reaching ADOL staff have so frustrated claimants that for many, traveling to Montgomery seems to be the only remaining option. These claimants seek such urgent relief that they have been camping out overnight in the hopes that their claims will be resolved. To make matters worse, Alabama’s unemployment fund is on track to become insolvent within the next month or two,” Senator Jones continued.

“As we continue to observe the grave status of unemployment and its repercussions on our nation, I urge the leadership of the Senate to consider including language that addresses unemployment issues in the next pandemic relief legislation in July. I respectfully urge the inclusion of language providing greater availability of federal funds for state Departments of Labor, to ensure that hardworking Americans can rely on temporary monetary aid to help feed their families and keep a roof over their heads during these trying times,”the letter concluded.

Senator Jones has been a strong advocate for support for working Alabamians throughout the COVID-19 crisis. He has introduced legislation to cover the wages and benefits of employees of affected businesses and non-profits until the economic and public health crisis is resolved, and during the negotiations for the CARES Act, he proposed the Small Business Lifeline fund to direct financial assistance to workers through payroll processing companies.Senator Jones has also called for the Treasury Department and the Small Business Administration to allow payroll processing companies to disburse the CARES Act small business loans to reduce complications and expedite salaries to workers who have been impacted by the coronavirus.

Full text of the letter can be foundhere and below.

July 1, 2020

The Honorable Mitch McConnell The Honorable Charles Schumer

Majority Leader Minority Leader

United States Senate United States Senate

317 Russell Senate Office Building 322 Hart Senate Office Building

Washington, D.C. 20510 Washington, D.C. 20510

Dear Majority Leader McConnell and Minority Leader Schumer:

As the nation continues to struggle with the health and economic repercussions of the coronavirus pandemic, Congress must do more to help those who are suffering from unemployment as a result. Alabama’s unemployment rate in May was 9.9%, and my home state is facing a 70% increase in the evictions of renters. This hardship is sadly not unique to Alabama, and Americans across the country are struggling to pay their bills, to keep the lights on, and to put food on their tables.

Millions of Americans have lost their jobs during this pandemic, and have turned to the unemployment benefits provided by programs in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These newly created programs have created a much-needed lifeline for folks across the country. Most notably, the Pandemic Unemployment Assistance (PUA) program, the Federal Pandemic Unemployment Compensation (FPUC) program, and the Pandemic Emergency Unemployment Compensation (PEUC) program were created to ensure states would be able to expand coverage of unemployment benefits given the outsized nature of the pandemic on employment.

However, the majority of State Departments of Labor have been experiencing great difficulties in updating their technical systems to withstand the sudden influx of numerous claims, disbursing benefit payments efficiently to claimants, and effectively communicating with claimants who may be frustrated with the speed at which their claims are processed.

The Alabama Department of Labor (ADOL) has disbursed nearly $2 billion in COVID-19 related unemployment compensation benefits under the PUA, FPUC, and PEUC programs. While ADOL has been working incredibly hard for Alabamians, phone call lines remain jammed, and benefits take significant time to process. ADOL has received 576,314 unemployment claims to date, and the Department is staffed enough to field less than 4% of the calls it receives per day. Since the crisis began, ADOL typically receives 210,000 calls per day; yet only 6,000 to 7,000 of those calls can be processed each day.

Put simply, ADOL is overwhelmed by the massive influx of claims. An article in the Montgomery Advertiser, enclosed with this letter, details the difficulties that Alabamians are experiencing. In an effort to address claims more efficiently, ADOL opened an in-person claims center in Montgomery, Alabama, but it too was inundated by the unmanageable number of claimants. While the ADOL has noted that an in-person presence is not required to file or resolve unemployment claims, technical glitches and difficulties reaching ADOL staff have so frustrated claimants that for many, traveling to Montgomery seems to be the only remaining option. These claimants seek such urgent relief that they have been camping out overnight in the hopes that their claims will be resolved. To make matters worse, Alabama’s unemployment fund is on track to become insolvent within the next month or two.

This is not the first time in recent times that state unemployment funds were in need of aid from the federal government. During the Great Recession, states that exhausted unemployment benefit funds were able to borrow from the Treasury Department to strengthen their funds. Given these dire economic times for state and local governments, the ability to access federal funds should be available once again to cover the costs associated with unemployment benefits.

As we continue to observe the grave status of unemployment and its repercussions on our nation, I urge the leadership of the Senate to consider including language that addresses unemployment issues in the next pandemic relief legislation in July. I respectfully urge the inclusion of language providing greater availability of federal funds for state Departments of Labor, to ensure that hardworking Americans can rely on temporary monetary aid to help feed their families and keep a roof over their heads during these trying times.

Sincerely,

Senator Doug Jones

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