Colorado has been approved for the latest federal Lost Wages Assistance program, which could add $300 per week to those already collecting at least $100 per week in unemployment benefits.

But as of today, that benefit will last only for three weeks, although a state unemployment official said it could be renewed. But whether more aid is coming won’t be known until Sept. 10.

Those already receiving unemployment benefits do not have to do anything to receive the additional benefit. According to a statement from the Colorado Department of Labor and Employment, those dollars will be added automatically, and this applies both to those receiving regular unemployment benefits as well as those on Pandemic Unemployment Assistance. The aid is retroactive to the week beginning July 26 and runs through the week ending Aug. 15.

The total amount will “put at least $265 million into the hands of our unemployed workforce who have been impacted by the economic downturn caused by the pandemic, and provides critical support during this time of extreme need,” said Joe Barela, Executive Director of CDLE, in a statement issued Tuesday.

The funds come from an executive order signed Aug. 8 by President Trump, which authorized the Federal Emergency Management Agency to spend up to $44 billion from its Disaster Relief Fund to provide unemployment wage assistance. Initially, the President required states that wanted to participate to match the $300 per week with $100 in state funds, but he backed off that requirement after states complained that they are already struggling financially due to the pandemic.

In Colorado, Gov. Jared Polis said the state could afford to put up that extra $100 per week for two to three weeks at most. It would cost the state roughly $31.1 million per week, based on the 310,912 unemployed Coloradans receiving benefits as of Aug. 1. The state has already cut $3.3 billion from its 2020-21 budget.

The state department of labor statement said it has not yet finalized the amount of its Lost Wages Assistance payments. Jeff Fitzgerald, division director of unemployment for CDLE, said the award is just for three weeks while FEMA sees how many states will apply for that additional aid. “We can go in and request more weeks, which will be evaluated after Sept. 10,” Fitzgerald told Colorado Politics.

If that additional aid is approved, it would be retroactive to the week beginning Aug. 16. 

Colorado is one of the first eight states to apply for the lost wages assistance program, and was previously among the first states to implement the Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation programs after the CARES Act was signed in April.

The LWA program succeeds FPUC, which previously supplemented unemployment benefit payments by $600 per week and  expired July 25. Colorado paid over $2.4 billion in FPUC benefits to approximately 560,000 claimants between April and July.

According to the CDLE statement, since March 29, more than $4.6 billion in state and federal unemployment benefits has been paid . Colorado has consistently paid benefits on more than 80% of initial claims filed and it ranks in the top five states who have timely benefit payment (within 21 days), according to data from the U.S. Department of Labor.

The balance of claims filed awaiting payment are largely due to an individual’s monetary eligibility and errors in claimants requesting benefit payments.

Those not eligible for the additional $300 per week receive less than $100 per week in unemployment benefits; CDLE estimates that about 6%, or about 28,000 people, of the state’s 300,000 active claims would not be eligible.