Unemployment Benefits Actually Expected to Decrease Poverty Rates?

In the early months of the COVID-19 pandemic, shutdowns across the country resulted in rapid job loss. 

In response to soaring unemployment, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March 2020. The CARES Act significantly expanded unemployment insurance by $600 a week, broadened eligibility, and extended benefits for an additional 13 weeks.

How did these moves affect the official poverty rate?

Unemployment insurance (UI) benefits lowered the overall poverty rate by 1.4 percentage points to 11.4% in 2020 and decreased poverty across all racial groups and all age groups, according to Census Bureau data released earlier this week (differences due to rounding).

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