Texans sue to stop state from exiting federal program paying extra $300 in unemployment

Gov. Greg Abbott has decreed that Texas its participation in the enhanced benefits as of Saturday, June 26, two months before the added payments are to end nationally. A group of Texans is suing to stop him. (Lola Gomez/Dallas Morning News/TNS)
Gov. Greg Abbott has decreed that Texas its participation in the enhanced benefits as of Saturday, June 26, two months before the added payments are to end nationally. A group of Texans is suing to stop him. (Lola Gomez/Dallas Morning News/TNS)

A group of Texans assisting each other in two Facebook groups are suing to prevent Gov. Greg Abbott and Attorney General Ken Paxton from opting out of a COVID-19 pandemic relief program that added an extra $300 to weekly unemployment pay.

Abbott last month said the state was ending its participation in the enhanced benefits as of Saturday, June 26, two months before the added payments are to end nationally.

Their lawsuit, filed in Travis County, alleges that the Texas constitution does not give Abbott the authority to make this decision alone, but instead requires a determination by the Texas Workforce Commission.

TWC is the state agency that processes unemployment claims and pays out benefits.

Abbott "exceeded his power" in opting out of the program, according to the lawsuit. It seeks a temporary restraining order to keep the benefits from ending on Saturday. Attorney David Sibley, who is working with the Facebook groups, said the case will be heard Friday afternoon.

The two groups, Texas Unemployment Updates and Unemployment Petition and Peaceful Protest, contain over 30,000 members combined.

The decision to halt the program followed increasing pressure from the Texas Association of Business and more than three dozen other business groups to end the extra payments, arguing that they were "disincentivizing" Texans from seeking employment.

Texas's unemployment rate is 6.7 percent as of May 21, a fall from 6.9 percent in April. According to the Bureau of Labor Statistics, over 960,000 Texans were unemployed as of March.

Texas is among 25 states that opted to end enhanced payments early. Lawsuits also have been filed in Maryland and Indiana. The Florida Phoenix reported this week that advocates also are considering legal action against the Florida governor if his decision is not reversed.

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