Home / US / A judge suspends early unemployment aid cuts in Indiana, saying it could cause “Irreparable danger”

A judge suspends early unemployment aid cuts in Indiana, saying it could cause “Irreparable danger”

A judge in Indiana said the state would have to continue to pay increased unemployment compensation until a verdict on the issue is reached. By the ruling that the termination of the payment may cause “Irreparable harm” if out-of-work residents are unable to pay for accommodation or meals.

The preliminary injunction took place in 26 states, all but one, Louisiana, run by Republican governors. is in the process of Ending Pandemic-Related Unemployment Benefits FOR MILLIONS On June 19, Indiana ended additional federal unemployment assistance. This includes paying an additional $300 per week. Instead of letting it all run out in early September

The Indiana Department of Labor Development, which oversees unemployment benefits, told CBS MoneyWatch it is “determining how to proceed as the federal program no longer exists after its termination on June 1


Last month, Indiana Governor Eric Holcomb announced he was shutting down special unemployment assistance before federal funding ended in early September, citing “help wanted signs posted throughout Indiana. and compare the economy of the state with “Indy 500 racing engine”

Like Holcomb, other governors argued that the $300-a-week extra pay required workers to take time off when the business needed employees.

But workers in those states have sued for the principal cuts. By arguing that the economy has not fully recovered. And they are dealing with complex issues such as inadequate child care and ongoing concerns about the pandemic.

The ruling could give hope to unemployed workers in other states, such as in Texas, where thousands of unemployed people sued Governor Greg Abbott about ending unemployment assistance early, claiming he used “unemployment benefits.” overdue power

“Irreparable Danger”

Earlier this month, Indiana Legal Services sued to suspend early termination of benefits. The claim violates Indiana law that requires the state to provide all federal insurance benefits available to its citizens.

Marion Superior Court Judge John Hanley ruled Friday that Indiana must continue to provide enhanced unemployment assistance until a verdict is reached. He added that “superior evidence” indicates the cancellation. Early federal unemployment benefits violate state law. And it noted that the subsidy cuts could cause difficulties for some in the state.

“Loss of housing or medical care And the inability to provide adequate food, shelter and child care for families is an irreparable danger pending the cause of this action. and were not adequately compensated with damage rewards,” Hanley wrote in the ruling.

Dozens of Republican-led states end benefits…


A recent study from The Century Foundation, a left-leaning thinking agency. It found that early termination of federal benefits will affect about 286,000 people in Indiana.

Andrew Stetner, unemployment expert at the Century Foundation, said: “Congratulations to Judge Hanley for standing up for unemployment and the state’s legal power to keep unemployed out of unemployment. severely difficult

An Indiana Department of Labor Development spokesman said unemployed people do not need to take action at this time. “Updated information will be available on the DWD website,” he said in an email to CBS MoneyWatch.

The Holcomb government office said it plans to appeal the court order.

“Indiana has taken reasonable steps to end its participation in the federal pandemic unemployment program,” Holcomb’s office said in an emailed statement. “The agreement expires on June 19. The Governor and the Department of Labor will immediately discuss the appeal of the judge’s order with the Attorney General.”

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