Obama Signs Unemployment Insurance Extension Bill into Law

Posted on November 6, 2009 by Jay Sumner

This morning, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) into law.  Originally titled the Unemployment Compensation Extension Act of 2009, this Act will extend by 14 weeks unemployment benefits in all 50 states. Those states with high, sustained rates of unemployment – averaging at least 8.5 % over a three-month period – will receive up to 20 additional weeks of benefits.

The Senate approved this measure by a vote of 98-0 on November 4. Although the House had approved a less expansive version of this bill in September, it voted 403-12 to pass the Senate’s amended version on November 5. Despite Congress’s overwhelming approval of this legislation, final passage was delayed several weeks when a number of senators sought to include amendments that were unrelated to unemployment.  The amendments the Senate eventually agreed to incorporate in the final bill extend through April 30, 2010 the $8,000 first-time homebuyer tax credit, and allow businesses to apply their 2008 or 2009 operating losses to any five years prior to 2008, enabling them to receive tax refunds for those years. Those businesses that accepted funds through the Troubled Asset Relief Program (TARP) would be ineligible for this tax relief. In addition, the Act contains provisions updating the Unemployment Insurance Modernization provision in the American Recovery and Reinvestment Act to allow victims of sexual assault who have left their job to be eligible for benefits under the “compelling family reasons” clause. This measure is funded by extending the employer-paid Federal Unemployment Tax Act (FUTA) surtax until June 30, 2011.

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Senate Votes to Proceed with Unemployment Bill

Posted on October 28, 2009 by Jay Sumner

The Senate on Tuesday voted 87-13 to proceed with consideration of the Unemployment Compensation Extension Act of 2009 (H.R. 3548), a bill that would, among other things, provide up to 14 additional weeks of unemployment benefits to individuals in all 50 states, and up to 20 additional weeks in states with rates of high, sustained unemployment. This legislation, which cleared the House of Representatives in September, has run into snags in the Senate. Democrats have accused Republicans of stalling passage by drafting amendments to the bill that have nothing to do with unemployment. Tuesday’s cloture vote effectively limits debate on the bill, and thus the consideration of the various amendments that have been proposed.

Some Republican senators have found fault with how the bill would be funded. As written, the measure would be fully paid for by extending the Federal Unemployment Tax Act surtax until June 30, 2011. This tax imposes an annual fee in the amount of $14 per worker on employers. Amendments that may be considered include one that would fund the bill by drawing funds from the Troubled Asset Relief Program (TARP) and another that would use unobligated funds from the American Recovery and Reinvestment Act (ARRA or “Economic Stimulus”). Other amendments would extend a popular homebuyer tax credit, and make the E-Verify employment verification program permanent.

A final vote on the unemployment extension bill could occur by the end of the week Assuming the measure passes, the bill will need to be reconciled with the less expansive version passed by the House, and then put to a final vote.
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Unemployment Benefits Extension Bill Stalls Yet Again

Posted on October 23, 2009 by Jay Sumner

It appears that hope for easy passage of an amended unemployment insurance benefits extension bill introduced earlier this month has faded. The Unemployment Compensation Extension Act of 2009 (H.R. 3548), which would extend UI benefits in all 50 states, has run into opposition from Senate Republicans who have either introduced or plan to introduce a number of amendments in an alleged attempt to stall the legislative process.

In a press release, Sen. Jack Reed (D-R.I.) claims that “Republicans have held up the bill for nearly two weeks by offering amendments that have nothing to do with helping the unemployed.” Some have raised concern about how the bill would be funded. As it stands, the extended benefits would be fully paid for by extending the Federal Unemployment Tax Act surtax until June 30, 2011. This tax imposes an annual fee in the amount of $14 per worker on employers. One or more amendments are expected to replace this tax with funds from the Troubled Asset Relief Program.

A less expansive version of this bill cleared the House of Representatives in September, but came under fire by Senators whose states would not have qualified for additional benefits under that bill. The current bill, which was introduced as a substitute, would provide up to 14 weeks of additional UI benefits for all states, and up to 20 extra weeks in states with unemployment rates averaging 8.5% or higher during a three-month period. The bill also contains provisions updating the Unemployment Insurance Modernization provision in the American Recovery and Reinvestment Act to allow victims of sexual assault who have left their job to be eligible for benefits under the “compelling family reasons” clause. In addition, the amended bill specifies that railroad workers facing expiring unemployment benefits would be eligible for additional weeks.

As of Thursday, the Senate failed to agree on which, if any, amendments would be considered as part of the final bill. A cloture vote on whether to consider the measure as-is is scheduled for Tuesday, October 27. At this point, it is unclear whether Senate Democrats will have sufficient votes to overcome a filibuster if they chose to proceed with the measure in its current form. Assuming the bill advances, it would be surprising if any significant action is taken by the end of the month.
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Senators Introduce Unemployment Benefits Extension Bill that Would Apply to All 50 States

Posted on October 9, 2009 by Jay Sumner

Senators Harry Reid (D-Nev.), Max Baucus (D-Mont.), Jack Reed (D-R.I.) and Jeanne Shaheen (D-N.H.) have introduced a new bill, the Emergency Unemployment Compensation Extension Act of 2009 (S.A. 2668 to H.R. 3548), that would extend unemployment insurance benefits for individuals in all 50 states. Under the terms of this legislation, unemployed workers would receive up to 14 weeks of additional benefits. Those in states with unemployment rates above 8.5 % would be entitled to an additional 6 weeks of benefits. The measure would be funded by extending through June 30, 2011, the Federal Unemployment Tax assessed on employers.

According to a press release issued from Sen. Reid’s office, the bill would also update the Unemployment Insurance Modernization provision in the American Recovery and Reinvestment Act ( “ARRA” or the “Economic Stimulus Package”) to allow victims of sexual assault who have left their job to be eligible for benefits under the “compelling family reasons” clause. Additionally, the legislation specifies that railroad workers facing expiring unemployment benefits would be eligible for additional weeks.

This measure is intended as a substitute for the Unemployment Compensation Extension Act of 2009 (H.R. 3548), which would have extended unemployment benefits for 13 weeks only in states with high persistent unemployment (8.5% on a rolling three-month average). The original bill passed the House of Representatives last month, but stalled in the Senate when lawmakers from states with unemployment rates that did not exceed the requisite threshold cried foul. Sen. Shaheen – who led the chorus of disenchantment by writing a letter to the Senate urging that benefits be extended in all 50 states – co-authored the new bill.

Given the current state of the economy and mounting unemployment rates, this measure is expected to receive widespread support in both houses of Congress.

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Unemployment Benefits Extension Bill Stalls in Senate

Posted on October 2, 2009 by Jay Sumner

A bill that would temporarily provide an additional 13 weeks of unemployment insurance benefits to states with high and sustained unemployment has lost momentum in the Senate. The Unemployment Compensation Extension Act of 2009 (H.R. 3548) sailed through the House of Representatives on September 22 by a vote of 331 to 83.  Obstacles to this measure arose in the Senate, however, where some lawmakers have expressed concern that this bill would be unfair to those states that have not exceeded 8.5% unemployment (for a rolling three-month average), as required by the bill to qualify for additional benefits.

Leading the criticism is Sen. Jeanne Shaheen (D-NH), who argued that the UI benefits extension should apply to all 50 states. In a statement and letter to the Senate signed by 14 fellow Democratic Senators and two Independents, Shaheen said that “unemployed workers face equally severe challenges no matter what state they live in, and they should be given the support they need.”

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House Approves Measure Extending Unemployment Benefits

Posted on September 23, 2009 by Jay Sumner

The House of Representatives approved by a vote of 331 to 83 the Unemployment Compensation Extension Act of 2009 (H.R. 3548), a bill that would extend unemployment benefits for 13 weeks in states with high persistent unemployment (8.5% on a rolling three-month average). To pay for this measure, the bill extends for one year a federal unemployment tax (FUTA surtax) that is set to expire at the end of 2009, and has been in place for more than 30 years. This tax requires businesses to pay an annual tax of $14 per worker. The bill would also require that current reporting on newly hired employees include the date work begins to reduce overpayment of UI benefits. In July, Rep. Jim McDermott (D-Wash.), who introduced this legislation, introduced a more comprehensive unemployment insurance bill (H.R. 3404) that included the 13-week benefits extension. The shorter bill was introduced on September 10 as an emergency measure to address continuing high unemployment due to the economic downturn.

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