WASHINGTON, D.C. -- Responding to declarations from a few Republican Governors that they would turn down a portion of the economic recovery funds recently signed into law, Ways and Means Committee Chairman Charles B. Rangel (D-NY) said, “I know most Governors, Democrats and Republicans alike, are eager to put the resources from the economic recovery package to work helping the people of their State. But a few seem ready to reject funds for unemployed workers to make a political statement. I hope in the end, they put people ahead of politics."
Rangel continued, “At a time when many Americans are losing their jobs, I don’t know why any Governor would reject funding for helping unemployed workers. This money will help States initiate common-sense reforms, but if States don’t find these reforms to be useful, they can change them in the future."
Income Security and Family Support Subcommittee Chairman Jim McDermott (D-WA) declared, “The American Recovery and Reinvestment Act provides governors with the money they need to shore up their struggling unemployment insurance programs, by making them more responsive to low-wage and part-time workers.
“If some governors don’t care about part-time workers, many of whom are working moms, that’s their choice and they can turn down this Federal money, but these are workers who contributed to the unemployment insurance system and need its help.
“It is troubling that a couple of governors may prefer the appearance of turning away federal help more than the appearance of helping the unemployed and promoting economic growth. The unemployment insurance legislation enables governors to update their programs so they respond to the needs of the 21st century economy, and so I expect most governors will seize this opportunity."
In addition to providing Federal funding to extend unemployment insurance (UI) and to temporarily increase UI benefits by $25 a week, the American Recovery and Reinvestment Act provides up to a total of $7 billion for States improving access to workers for whom UI taxes are paid, but who are excluded from the program when they lose their jobs. The Government Accountability Office has highlighted that the modernization reforms supported by the $7 billion would help reduce barriers to UI coverage for low-wage, part-time and other workers. These reforms have already been implemented by many States without any Federal assistance. All of these provisions were reported by the Committee on Ways and Means when it marked up its section of the economic recovery package.
A fact sheet on the UI Modernization provisions is attached.
