Since she lost her job as a customer service coordinator at a department store, Mary Baker has cut down on everything she can to make ends meet while she searches for a new job. The San Antonio resident has unsubscribed from cable, stopped paying for some of her medications and cut down significantly on her air conditioning. But her roughly $3,000 monthly unemployment payments still don’t stretch far enough.
And they’re about to get smaller.
Baker is one of the many jobless Texans who will lose a significant portion of their unemployment benefits in June as they continue trying to get back on their feet in a state still recovering from the pandemic.
In an effort to connect unemployed people with work instead of unemployment assistance, Gov. Greg Abbott said on Monday that Texas will opt out of all federal unemployment assistance programs after June 26, including an extra $300-per-week federal benefit Congress approved earlier this year. Abbott also is planning to withdraw from Pandemic Unemployment Assistance, which provides aid to gig workers, self-employed people and others who aren’t traditionally covered by unemployment insurance. That June 26 cut-off for Texans comes months earlier than many expected when Congress authorized or extended programs to run as late as early September.
For Baker, that means she’ll likely have to stop buying her insulin, and cut back on groceries next month.
“When I heard Abbott’s announcement on the TV the other night, I got a knot in the pit of my stomach because I just don’t know how I’m going to make it work,” Baker said. “I can’t just go take a $12 an hour job. That’s going to stop the unemployment, but it’s still not going to pay my bills.”
Critics of Abbott’s move say tens of thousands of desperate Texans shouldn’t have to choose between scrambling to find a job in the next few weeks or living with $1,200 less getting deposited into their bank accounts every month. Many jobless Texans say they are still facing difficulties reentering the workforce and are relying on federal unemployment to get by.
Abbott’s office did not immediately respond to a request for comment Thursday.
The unemployment rate in Texas was 6.7% in April. That is far below the record-high rate of 12.9% for April 2020, when much of the state’s businesses were shut down. But it is nearly double the record low of 3.4% in May and June 2019.
The Texas Workforce Commission didn’t answer how many people are currently receiving the federal benefits. But according to data compiled by University of Texas at Austin economics professor Julia Coronado, approximately 344,000 Texans were receiving assistance through the PUA program as of April 30.
Abbott’s decision comes amid a wave of Republican governors announcing plans to cut benefits in order to encourage people to return to work and after pressure from business groups. In his announcement, Abbott said there are more than a million job openings in Texas, and many employers across the state are hiring for jobs that pay well above the minimum wage of $7.25.