Unemployment Insurance
Senate Approves Seven–Week Extension
Of UI Benefits; Bush to Sign Legislation

The Senate Nov. 20 approved by a voice vote a $6 billion measure to extend unemployment insurance benefits, sending the bill (H.R. 6867) to a now-supportive President Bush to sign into law.

The bill, titled the Unemployment Compensation Act, would extend UI benefits for seven weeks nationwide for workers who have exhausted their benefits and for an additional 13 weeks in states with high unemployment rates.

The Senate's approval vote immediately followed an 89-6 procedural vote to cut off debate and proceed to consider the legislation. The legislation would provide an additional 13 weeks of benefits for workers in states with high unemployment rates, defined as 6 percent or higher, for a total extension of 20 weeks. Since the House already has approved the bill on a 386-28 vote on Oct. 3 (193 DLR A-12, 10/6/08), the legislation will be sent to the White House.

Administration Reverses Position.

White House Press Secretary Dana Perino said in a Nov. 20 statement before the Senate vote that the president would sign the bill because the economic crisis is impacting job creation. The statement reversed the administration's previous position of "wait and see" on the issue.

"The president is always concerned when anybody loses their job and wants to ensure that anybody who wants to work can find employment," Perino said. "Because of the tight job market, the President believes it would be appropriate to further extend unemployment benefits, and he would sign the legislation now pending in Congress. We will continue to aggressively implement the rescue package so businesses and consumers are able to get loans so our economy can once again grow and create jobs."

Later, Perino told reporters that the administration changed its position because in June the unemployment rate was "historically low" at 5.5 percent. "Just five months later, the whole world has changed, and the president adapts to conditions on the ground," Perino said. "And unemployment is now at 6.5 percent, and we think the responsible thing to do is to try to help job seekers over this hump until..we can get the country creating jobs again and get them back to work. So, that's why we changed the position."

High Unemployment States Get Additional Extension.

The bill would expand the current Emergency Unemployment Compensation (EUC) program to further extend UI benefits for up to seven weeks for workers nationwide who have exhausted their benefits. The legislation would provide an additional 13 weeks of benefits for workers in states with high unemployment rates, defined as 6 percent or higher, for a total extension of 20 weeks.

Currently, 18 states and the District of Columbia have such rates.

President Bush signed the first UI extension (H.R. 2642) into law June 30. That measure extended benefits across the nation by up to 13 weeks for unemployed workers who had exhausted their benefits (126 DLR A-3, 7/1/08). It did not include a provision for states with high unemployment rates.

Both extensions would expire in March 2009.

Sen. Edward Kennedy (D-Mass.), chairman of the Senate Health, Education, Labor, and Pensions Committee, said the legislation allows for up to 46 total weeks of UI benefits for unemployed workers nationally, and for a total of up to 59 weeks in states with high unemployment rates.

"The Senate was right to act now to provide greater assistance for Americans who can't find work," Kennedy said. "[The] action is a vital step in repairing the tattered safety net for the millions of families struggling during these harsh economic times."

McDermott Pleased With Passage.

Rep. Jim McDermott (D-Wash.), bill author and chairman of the House Ways and Means Committee's Income Security and Family Support Subcommittee, said, "Extending UI benefits is nothing less than throwing a life ring to unemployed Americans to help them stay afloat in these treacherous economic waters while they continue to look for a new job."

McDermott noted that the legislation is fully paid for with monies saved in the federal unemployment trust funds and provides "very modest support" for people who are running out of benefits. Nationally, he said, the average weekly UI benefit amounts to about $300.

"Last week, I said all it would take to jump start the U.S. economy would be for the president to make one telephone call to Senate Republican leadership to signal his support for UI, and it looks like the call was made," McDermott said. "I am grateful for that, because the American people need compassion, not politics right now."

Christine Owens, executive director of the National Employment Law Project, said in a statement that NELP "applaud[s] Congress for taking this action, and we hope it's the first step of many necessary reforms that reflects the serious needs of everyday families and those communities hardest hit by the recession to help bring about an economic recovery. The president should sign the legislation right away to make sure the benefits are available without delay to all workers in need and the struggling economy."

By Derrick Cain