WASHINGTON, D.C. - The House of Representatives today passed H.R. 3548, the Unemployment Compensation Extension Act of 2009, with an overwhelmingly bipartisan vote of 331-83. The legislation would extend unemployment benefits by up to 13 weeks in States where the unemployment rate is 8.5 percent or higher on a three month rolling average. By the end of September, an estimated 314,000 workers in high unemployment States across America will exhaust their UI benefits and over one million Americans will exhaust their benefits by the end of the year unless Congress acts.
“Despite signs that the economy is turning a corner toward recovery, we still have more than six jobless workers for every one job available," said Ways and Means Committee Chairman Charles B. Rangel (D-NY). “This legislation sends a clear signal that Congress understands the challenges facing these unemployed workers and that we are working to help them meet their needs during this difficult time."
While the pace of job loss has declined dramatically in recent months, the U.S. has shed over 6.9 million jobs since the beginning of the recession in 2007. The benefits in H.R. 3548 would provide immediate assistance to jobless workers residing in high unemployment States, helping them buy necessities for their families and continue their mortgage payments.
“By passing this legislation we have told the American people that we stand with them and will not abandon them at a time when decent hard-working Americans are struggling to regain their economic footing," said Ways and Means Income Security and Family Support Chairman Jim McDermott (D-WA). “By the hundreds, middle class Americans from across the country have called me to tell me their personal stories, and the courage and determination displayed by these people is absolutely remarkable and helping them weather the crisis is absolutely essential."
High unemployment States are defined as those having a seasonally-adjusted, three-month average total unemployment rate (TUR) of 8.5 percent, or a 13-week insured unemployment rate (IUR) above six percent. To date, there are 29 high unemployment States: AL, AZ, CA, DC, FL, GA, ID, IL, IN, KY, MA, ME, MI, MS, MO, NV, NJ, NC, NY, OH, OR, PA, PR, RI, SC, TN, WA, WI & WV.
The cost of this legislation is completely offset by two provisions. First, it extends for one year a federal unemployment tax (FUTA surtax) that has been in place for over 30 years and which President Bush proposed extending in his last budget (the tax costs employers $14 per year, per employee). And second, it requires that current reporting on newly hired employees include the date work started to reduce UI overpayments (as proposed by both Bush and Obama budgets).
