Financial Help for Those Who Don't Qualify for Tier 3 Unemployment

When high jobless rates make finding work especially difficult, extensions of state unemployment benefits programs allow the unemployed to continue receiving a weekly check for longer than usual. In 2011, unemployed residents in many states may receive benefits for nearly two years. In a few states, specifically those that do not qualify for Tier 3 benefits, residents have fewer weeks available and thus may need other forms of financial assistance.

Background

Although unemployment benefits traditionally end after 26 weeks, the federal government began funding substantial extensions of the program in 2008. The extensions are available to unemployed workers at least through 2011, with the duration for residents of each state depending on the state's unemployment number. The bulk of the extension, known as Emergency Unemployment Compensation, consists of four tiers; the first two tiers, available to all states, lengthen the window for receiving benefits to 60 weeks. Up to 39 additional weeks are available in many states, but as of February 2011, residents in five states with unemployment rates under 6 percent must settle for the 60-week limit.

Considerations

In February 2011, out-of-work residents in Vermont, New Hampshire, North Dakota, South Dakota and Nebraska had no access to unemployment benefits in Tier 3 or beyond. Iowa, Hawaii and Wyoming had unemployment rates that were close to the 6-percent mark, and falling below that threshold would limit unemployment benefits for residents to 60 weeks total. Depending on their overall financial situation, residents in these states may be eligible for some forms of public aid after their unemployment benefits stop.

Food Stamps

All states offer food stamps to eligible families through the Supplemental Nutrition Assistance Program (SNAP), although state programs may go by different names. The Food and Nutrition Service, a U.S. Department of Agriculture division, regulates the criteria for SNAP eligibility. A family's income must be relatively close to the federal poverty level to be eligible. Benefits go toward supermarket purchases, although some items are off limits: alcohol and tobacco products, nonfood items and hot food for eating in the store, for example. In 2008, according to FNS, average SNAP payouts were $101 per individual and $227 per family.

Medicaid

State-funded health care is available to residents whose income is close to the federal poverty level, with the exact threshold varying by state. In general, Medicaid is available only to certain categories of people: pregnant women, parents or guardians of children and teenagers, and elderly, blind or disabled people.

Welfare

Temporary Assistance for Needy Families provides cash assistance, as well as benefits -- such as job training, child care and transportation help -- to support recipients in finding employment. Income eligibility guidelines vary widely by state. The welfare reform law in 1996 imposed more stringent requirements regarding pursuit of employment for welfare recipients, and also limited the total time frame for receiving benefits to 60 months.

Supplemental Security Income

Supplemental Security Income, a program administered by the Social Security Administration, is another form of cash assistance. Its target audience is narrow: Recipients must be 65 or older, or blind or disabled. As with other assistance programs, income and financial resources are pivotal in determining eligibility. Unlike with TANF, SSI does not emphasize job training requirements as criteria for continuing eligibility.

References

• Center on Budget and Policy Priorities: Policy Basics: Unemployment Insurance
• U.S. Bureau of Labor Statistics: Local Area Unemployment Statistics: Unemployment Rates for States
• USDA Food and Nutrition Service: Supplemental Nutrition Assistance Program: Frequently Asked Questions
• Centers for Medicare and Medicaid Services: Medicaid Eligibility: Are You Eligible?
• Center on Budget and Policy Priorities: Policy Basics: An Introduction to TANF
• Social Security Online: Supplemental Security Income

Resources

• CNNMoney.com: You Don't Want to Be Unemployed in Vermont