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Unemployment payouts to drop $300 each week, Abbott decides

Gov. Greg Abbott announced Monday that Texas will in June opt out of a federal coronavirus aid program that boosts unemployment insurance by $300 each week.

SAN ANTONIO — After June 26, Texas will not allow its jobless population to collect the additional $300 Congress tacked onto weekly unemployment payouts in the latest coronavirus relief bill.

Gov. Greg Abbott announced Monday the state is "opting out" of the program 10 weeks before it expires, meaning some jobless Texans will lose as much as $3,000 if they remain unemployed through Sept. 6, when the federal money runs dry. 

“The Texas economy is booming and employers are hiring in communities throughout the state,” Abbott said, contending there are more job openings in Texas than unemployed people. 

The move comes as the business community lobbies against federal jobless aid it claims are disincentives to work. Restaurant owners, in particular, say they cannot fill open positions because the federal payouts are too lucrative. 

"It's the worst we've ever seen it. We could hire 15 to 20 people right now," Acadiana Cafe owner Dave Saylor said. 

He noted he pays his hourly employees at least 50 percent more than minimum wage, and says some servers take home nearly $300 each day in tips. 

"At the beginning of the pandemic, the unemployment benefits were a good thing because there were not jobs. We needed that," he said. "We've opened up. The jobs are here... Let's get people back to work." 

But some unemployed Texans say they can't find openings for jobs they worked before the coronavirus ruined the nation's economy. 

"I'm not asking for the same amount of money," Joe Covington said. "I'm asking to go into a job I'm trained to do. I'm not good at Whataburger. I don't think I'd be good at the drive-thru."

"I'm looking for a job in my field."

The 64-year-old former motorcycle policeman lost his hotel security job in March 2020. 

Covington has another job interview this week. He says he's actively searched for a comparable security job since the pandemic began, and has the paperwork to prove it. 

"(The governor) didn't do nothing for Texas today," he said. "He hurt a lot of people." 

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