Dems Pressuring GOP to Extend Unemployment Insurance Again
WASHINGTON – Congressional Democrats are pressuring Republicans to once again extend emergency benefits to the nation’s unemployed, asserting that more than one million people unable to find work will see their assistance expire just after Christmas unless the issue is addressed.
Democrats on the House Ways and Means Committee signed and sent a letter to Rep. Dave Camp (R-Mich.) asking the panel’s chairman to hold a hearing on the approaching end of the federal Emergency Unemployment Compensation program, characterizing it as “an urgent economic issue.”
“With the end of the year fast approaching, we must hear from Americans who just days after Christmas would immediately lose their unemployment insurance if Congress takes no action,” the letter said. “We invite you to work with us in setting up such a hearing, so that the human consequences of the pending expiration of the federal unemployment insurance program are fully understood.”
Republican lawmakers have remained relatively quiet about the looming deadline. A spokesman for House Speaker John Boehner (R-Ohio) would only say GOP leaders would consider an extension proposal.
Legislation has been introduced in both the House and Senate to extend federal unemployment insurance benefits through 2014 at an estimated cost of $25 billion. The fate of those measures remains unclear.
“Both parties have extended emergency unemployment insurance in times of high unemployment and we need to continue that now,” said Sen. Debbie Stabenow (D-Mich.), a co-sponsor of the Senate bill. “The economy is getting better, but unemployment is still too high and there are still three people looking for work for every one job opening. Congress needs to focus on helping businesses create jobs, not pull the rug out from families unemployed through no fault of their own.”
The unemployment insurance system is a partnership between the federal and state governments that provides a weekly benefit to qualified individuals who lose their job and are seeking work. The amount of that benefit is based in part on a worker’s past earnings.
States typically provide unemployment benefits for 26 weeks. The temporary Emergency Unemployment Compensation, initiated in 2008 during the height of the financial crisis, allowed the states to extend that time limit. Last year lawmakers agreed to an extension and included a provision that allows individuals attempting to start their own businesses to continue collecting benefits even though they are not actively seeking new jobs.
Failure to preserve unemployment insurance will affect 1.3 million Americans who will find themselves cut off if an extension isn’t approved by Congress by Dec. 28. Another 1.9 million Americans will be denied access to the emergency program during the first six months of next year. If Congress does not renew the law, those out of work who file for unemployment benefits in 2014 will only qualify for state benefits, which last a maximum of 26 weeks. Reports show that the average unemployed person is out of work and searching for a new job for 36 weeks.
The federal government reports that 36 percent of those unemployed have been out of work for more than six months and the economy still has 1.5 million fewer jobs than before the 2008 recession.