Louisiana will be the first Democrat-led state to end the federal unemployment boost

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Louisiana will stop paying the $300-a-week federal boost to pandemic unemployment benefits at the end of July -- the first Democrat-led state to drop the assistance.

Gov. John Bel Edwards on Wednesday signed a bill that terminates the federal enhancement early in exchange for increasing the maximum state unemployment benefit by $28 to $275 a week, starting in 2022.

Louisiana is joining 25 GOP-led states that are dropping at least one of the three pandemic unemployment insurance programs that Congress enacted in March 2020 and extended twice to support people during the virus-fueled economic downturn. The programs are scheduled to expire in early September in the states that are continuing them, under a provision contained in the Democrats' $1.9 trillion relief package that President Joe Biden signed into law in March.

Citing workforce shortages, the Republican governors say the expanded benefits are keeping the unemployed from accepting job offers.

Asked last week about ending the enhanced payments early, Edwards said that he was already considering discontinuing the payments around August 1, He added that he was waiting for a report that weighed the benefits to Louisiana of continuing the $300 boost with the costs of employers not having enough workers.

Edwards noted that Congress opted to have the program expire on Labor Day because schools will be open by that date -- but pointed out that Louisiana schools start in August. So ceasing the payments on July 31 was "keeping the spirit of that," he said.

The state's business leaders cheered the decision to terminate the pandemic program early.

"Enabling businesses to compete with other businesses for talent rather than an enhanced unemployment program will help fill record-breaking openings and get Louisianans back to work," said Adam Knapp, CEO of the Baton Rouge Area Chamber, which had called for Edwards to stop the extra $300 payment.

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