Natural State News

A legal challenge has been filed in an attempt to get an injunction against the state of Arkansas and force it to allow residents to collect the extra benefits being provided by the federal government for unemployment claims, KARK reported.

A state judge in Arkansas granted the preliminary injunction against Hutchinson's decision in late July, The Hill reported.

Over the course of the pandemic, the federal government has enhanced unemployment benefits in order to keep people in their homes and help offset the economic damage caused by the closure of businesses to help stop the spread of the coronavirus. Some states, however, chose to opt out of those enhanced benefits and not accept the increased federal unemployment funds. Arkansas was one such state. 

Natural State News reported that Arkansas Gov. Asa Hutchinson opted his state out of the extra $300 in federal unemployment benefits.

Hutchinson believes that Arkansas residents are faring better than those in other states and that the enhanced unemployment benefits are not needed. In July, Arkansas announced that its unemployment rate held steady at 4.4% for the third straight month, according to a release from the governor. This is more than a whole point lower than the national average.

KARK reported that Hutchinson responded to the lawsuit, saying that federal law gives states the power to opt out of these benefits. He defended his actions as necessary to help get Arkansas' economy back on track by helping people get back to work. He contends that he acted within the authority given to him as governor, but also stated that legislative action would be taken if necessary.

There also a political component tied to the decision to enhance unemployment benefits, with many people split down party lines as to whether they should be reduced immediately and whether they are currently hindering a return to employment for millions of Americans, according to a poll reported by Forbes.