House Approves Additional 13 Weeks of Unemployment Compensation
September 22, 2009
This afternoon, the House of Representatives passed H.R 3548, the Unemployment Compensation Extension Act, which will provide increased federal support to states, like Tennessee, with high unemployment.
“Had we not acted today, it’s likely that hundreds of people who are trying to support their families would lose their benefits next week. Thousands more would have been at risk of losing unemployment insurance by the end of the year. This timely, targeted and temporary extension of benefits means that job-seekers will have a little extra financial breathing room while they continue their job searches,” Congressman Cohen said. “This was the right thing to do, and I’m proud to have voted to support this bill. I urge the Senate to act quickly.”
In Tennessee, 8,299 people are at risk of losing their unemployment benefits starting next week, and 32,788 people would lose these benefits by the end of the year.
Nationwide, H.R. 3548 will help at least 300,000 people who will exhaust all of their unemployment benefits by the end of September and over 1 million people will lose their benefits by the end of December.
The extension is targeted to those states with particularly high unemployment (with a three-month average total unemployment rate (TUR) of 8.5 percent, or a 13-week insured unemployment rate (IUR) above 6 percent), where it is more difficult for people to find new jobs. Tennessee qualified for the funds because the state’s three month TUR was 10.8 percent.
Leading economists have said that extending unemployment benefits is also one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly – helping the economy as well as the recipients. Every $1 spent on unemployment benefits generates $1.63 in new economic demand.
Additionally, the bill would not add to the deficit: it extends the federal unemployment tax that has been in place for 30 years, an additional year; and, requires better reporting on newly hired employees (start date) to reduce unemployment insurance overpayments. Both of these remedies were proposed by President Bush.
The bill now goes to the U.S. Senate where it is expected to be passed sometime this week. President Obama has said he hopes to be able to sign the bill into law before the start of the next fiscal year, October 1, 2009, when some unemployment benefits would expire.
_______________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov
“Had we not acted today, it’s likely that hundreds of people who are trying to support their families would lose their benefits next week. Thousands more would have been at risk of losing unemployment insurance by the end of the year. This timely, targeted and temporary extension of benefits means that job-seekers will have a little extra financial breathing room while they continue their job searches,” Congressman Cohen said. “This was the right thing to do, and I’m proud to have voted to support this bill. I urge the Senate to act quickly.”
In Tennessee, 8,299 people are at risk of losing their unemployment benefits starting next week, and 32,788 people would lose these benefits by the end of the year.
Nationwide, H.R. 3548 will help at least 300,000 people who will exhaust all of their unemployment benefits by the end of September and over 1 million people will lose their benefits by the end of December.
The extension is targeted to those states with particularly high unemployment (with a three-month average total unemployment rate (TUR) of 8.5 percent, or a 13-week insured unemployment rate (IUR) above 6 percent), where it is more difficult for people to find new jobs. Tennessee qualified for the funds because the state’s three month TUR was 10.8 percent.
Leading economists have said that extending unemployment benefits is also one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly – helping the economy as well as the recipients. Every $1 spent on unemployment benefits generates $1.63 in new economic demand.
Additionally, the bill would not add to the deficit: it extends the federal unemployment tax that has been in place for 30 years, an additional year; and, requires better reporting on newly hired employees (start date) to reduce unemployment insurance overpayments. Both of these remedies were proposed by President Bush.
The bill now goes to the U.S. Senate where it is expected to be passed sometime this week. President Obama has said he hopes to be able to sign the bill into law before the start of the next fiscal year, October 1, 2009, when some unemployment benefits would expire.
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_______________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov