MONTGOMERY, Ala. (AP) -- Alabama Gov. Kay Ivey is evaluating President Donald Trump's proposal to offer an additional $400 a week in unemployment payments and has not decided if the state will sign on to the plan, which requires states to pick up a fourth of the cost, a spokeswoman said Monday.
There are many unknowns about the Trump's plan announced over the weekend, including if he has the power to extend benefits by executive order, leaving state officials seeking additional information about how it would work and the affordability of the proposal.
"As we continue working to get Alabamians safely back to work, we are exploring the options we have available to provide the necessary assistance. The governor along with the Department of Labor are closely evaluating the most recent directions now," Ivey spokeswoman Gina Maiola said in a statement.
Out-of-work Americans had been receiving an additional $600 a week in supplemental unemployment, in addition to what the state pays, during the COVID-19 pandemic which saw unemployment skyrocket. The supplemental payment expired July 31 and Congress has been unable to agree on an extension. Some Republicans argued it would discourage people from returning to the workforce.
Trump, in an attempt to bypass Congress in extending additional unemployment payments, announced plans by memorandum to give an additional $400 a week. But that requires the state to pay $100 per person in weekly payments.
Tara Hutchison, a spokeswoman for the the Alabama Department of Labor, said the department is "expecting to receive guidance this week from national authorities to properly interpret the implementation and funding options that are available for states."
She said the agency will share information on the website and social media as soon as they have updates.
The state's unemployment fund has been nearly depleted during the pandemic
The massive influx of new claims during the COVID-19 pandemic has drained the state's unemployment fund from about $750 million before the pandemic to $200 million, she said.
Hutchinson said the state's unemployment fund, which has been paying out $20 million to $25 million in benefits each week, has only about two months' worth of regular benefits remaining under the current rate of payout. She said the state is prepared to apply for federal assistance if needed.
Senate President Pro Tem Del Marsh said he believes the state should sign on if possible. He said legislators are seeking information about the total cost to the state, but Marsh said he thought the state is in "pretty good shape" financially and should be able to come up with the required match if regular tax collections can be used.
"We want to do whatever we need to help people get through this," Marsh said.