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A top Trump economic advisor says the White House is considering offering 'back to work' cash bonuses for unemployed Americans

Kudlow said the Trump administration is weighing offering unemployed people a cash bonus for returning to work.

larry kudlow
  • "It's something we are looking at very carefully," Kudlow said in a Fox News interview.
  • The remarks come as Republicans begin seeking alternatives to the $3 trillion spending package Democrats passed in the House.
  • Visit Business Insider's homepage for more stories .

National Economic Council Director Larry Kudlow said the Trump administration is weighing offering a "back to work" cash bonus to encourage unemployed Americans to return to their old posts or seek out new ones.

"It's something we are looking at very carefully," he said in a Fox News interview Tuesday . He said he believed the $600 boost in weekly unemployment benefits enacted in March disincentivized people from going back to work.

"The trouble with the $600 plus-up, and maybe we needed it in that emergency period, but frankly it's a major disincentive to go back to work and we don't want that," Kudlow said, and predicted the beefed-up benefits wouldn't be included in the next federal legislation.

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He didn't offer a specific figure for a possible cash bonus for unemployed people.Kudlow expressed optimism about the state of the economy, despite rising levels of unemployment.

"These signs are showing a lot more glimmers of hope and growth and the signs seem to be mounting," he said.

Kudlow's remarks come as Republicans start seeking to chart an alternative plan to the proposed $3 trillion coronavirus relief package Democrats passed in the House.

A chasm still remains between both parties over future legislation as Republicans seek to protect businesses from coronavirus-related lawsuits and Democrats press for aid for states and jobless people.

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The idea of a cash bonus for unemployed people has gained traction among Senate Republicans recently, The Wall Street Journal reported. Republican Sen. Rob Portman of Ohio unveiled a plan to offer $450 a week for laid-off people returning to work that would be added to their wages temporarily.

GOP lawmakers argue the ramped-up unemployment benefits are allowing people to earn more while they're staying home and hurting the economy as a result.

House Democrats voted to extend the $600 boost in weekly unemployment paychecks through January 31 in their spending package. But Republicans are fiercely opposed to the measure and are not taking it up for consideration.

Last week, Senate Majority Leader Mitch McConnell vowed to scrap the increased unemployment benefit, calling it "a crazy policy" that wouldn't be extended in the next coronavirus relief bill. Politico first reported the remarks.

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