The Unemployment Extension, formally known as Emergency Unemployment Compensation, is a US federal government program which assists states in providing additional weeks of unemployment benefits to workers who have been laid off due to no fault of their own.http://worldnewsvine.com/2010/11/unemployment-extension-phase-out-begins/ Because of the current economic situation in the United States, many individuals are having a much more difficult time finding work than they anticipated.http://worldnewsvine.com/2010/11/unemployment-extension-phase-out-begins/
Depending on a state's individual unemployment rate, workers have been offered extensions of unemployment benefits through four different tiers.http://www.miamiherald.com/2010/01/31/1453453/extended-unemployment-is-complicated.html A worker who cannot find a job for an extended period of time can move through the four additional tiers of extended benefits before their unemployment income is finally cut off.http://www.miamiherald.com/2010/01/31/1453453/extended-unemployment-is-complicated.html
In June of 2010, the existing benefits program expired, and it took until July 22 for the President to be able to sign a new bill that the Senate and House of Representatives finally passed. The new extension was viable until November 2010.http://www.latimes.com/news/nationworld/nation/la-na-jobless-20100723,0,6934256.story
What is an Unemployment Extension?
Here is a brief overview of unemployment extensions. It explains that this is a program from the federal government that assists states in providing the benefits that the unemployed need beyond what is normally provided. The benefits are allotted under one of four tiers.The tiers are based on the state's normal unemployment rate and a laid-off worker can progress through all four tiers before exhausting the allowed benefits.
December 6, 2010: Unemployment Extension and Bush Tax Cuts to Continue
President Barack Obama announced on Monday evening, December 6, 2010, that an agreement had been reached to extend both the Bush tax cuts and unemployment benefits.http://michiganmessenger.com/44425/deal-on-unemployment-extension-getting-closer On December 4, the United States Senate voted down an emergency unemployment benefit extension, but in a CBS press conference, President Obama informed the American people that an agreement had since been reached. The new agreement extends unemployment benefits for an additional 13 months for over nine million Americans. It also extends the Bush tax cuts for the next two years.http://www.examiner.com/pop-culture-in-portland/unemployment-extension-2010-obama-press-conference-justifies-tax-cuts
December 4, 2010: Senate Votes Down Emergency Unemployment Benefit Extension
On December 1, 2010, the emergency unemployment program expired. The Senate voted not to expand the program on December 4. Fifty-three senators voted for the measure. Four million Americans are in danger of losing their benefits in 2011.http://www.huffingtonpost.com/2010/12/03/unemployment-benefits-99ers-obama_n_791682.html Another six million Americans will face an approximate forty percent decrease in their income.http://www.huffingtonpost.com/2010/12/03/unemployment-benefits-99ers-obama_n_791682.html The labor market is expected to lose an estimated 600,000 jobs.http://www.huffingtonpost.com/2010/12/03/unemployment-benefits-99ers-obama_n_791682.html
Henry J. Aaron, a Brookings Institute economist, calls the developments "discouraging" for the nation's economic recovery.http://www.huffingtonpost.com/2010/12/03/unemployment-benefits-99ers-obama_n_791682.html President Barack Obama expressed "disappointment" with the vote.http://www.cnn.com/2010/POLITICS/12/04/senate.tax.vote/index.html?hpt=T1
The emergency unemployment program extension was tied to legislation evoking the tax cuts to the middle class put in place by President George W. Bush.http://www.cnn.com/2010/POLITICS/12/04/senate.tax.vote/index.html?hpt=T1
2010 Unemployment Extension Status
On July 22, 2010, President Obama signed another unemployment extension bill into law. The bill allowed unemployed workers who have not received the full 99 weeks of available Emergency Unemployment Compensation to began claiming benefits retroactive to the end of May. The measure extended the benefits through the end of November 2010. Claimants who had already received the full 99 weeks before this extension did not qualify for further benefits under this measure.http://www.latimes.com/news/nationworld/nation/la-na-jobless-20100723,0,6934256.story
Before the bill was signed, it was approved by the United States Senate 59 to 39. The vote was generally along party lines with the vast majority of Democrats approving it and the vast majority of Republicans voting no.http://www.latimes.com/news/nationworld/nation/la-na-jobless-20100723,0,6934256.story Prior to this vote, debate on the bill had been suspended following the death of West Virginia senator Robert Byrd. His replacement, Carte Goodwin, was sworn in on July 20 and debate resumed.http://www.latimes.com/news/nationworld/nation/la-na-byrd-seat-20100717,0,4778456.story
After the bill was passed by the Senate, it was sent to the House of Representatives, which also approved it by a vote of 272 to 152. It will cost an estimated $34 billion to fund.http://www.washingtonpost.com/wp-dyn/content/article/2010/07/22/AR2010072203825.html?hpid=topnews The United States Congress began debating this new unemployment extension bill at the end of May 2010. Republican leaders were unwilling to agree to the new package, however, saying that it would increase the national debt. More than 2 million unemployed workers lost their benefits during the time that the program was suspended.http://www.npr.org/templates/story/story.php?storyId=128446343
Another extension of unemployment benefits was voted down by the House of Representatives on November 18, 2010. It was voted down mainly due to a lack of planning to fund the benefits. The declined vote m the benefits of many unemployed Americans expired on November 30, 2010. Some economists believe that a lack of unemployment benefits will cause more unemployed people to look for work.http://latimesblogs.latimes.com/money_co/2010/11/unemployment-benefit-extension.html
2010 Unemployment Extension
The unemployment extension is a US federal government program which assists states in providing additional weeks of unemployment benefits to employees who have been laid off. On June 2, 2010 the first set of unemployment extensions expired, and congress is currently convening to determine whether they will pass new legislation to extend unemployment benefits until November of 2010. In particular congress will be deliberating on the American Jobs and Closing Tax Loopholes Act of 2010 aka H.R. 4213 as well as the Restoration of Emergency Unemployment Compensation Act of 2010 aka H.R.5618.
2010 Unemployment Extension News and Events Background
On April 15, 2010 the President extended unemployment benefits until June 2 in some states. There was legislation on the table to extend the benefits through the end of 2010. On March 16, the House also approved a one month extension, rather than the full Senate bill.http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201003171612dowjonesdjonline000687&title=us-house-approves-short-term-extension-of-jobless-benefits
On Thursday March 25, Senator Tom Coburn introduced a bill to extend unemployment benefits, funding the benefits with reductions in federal spending. Though it appeared that the Democrats and Republicans had reached an agreement on how to pay for the package, the bill failed, 59-40.http://www.newson6.com/Global/story.asp?S=12204961 http://www.cbsnews.com/8301-503544_162-20001285-503544.html
The Senate adjourned on Friday March 26 for its two week recess without passing an extension.http://www.cbsnews.com/8301-503544_162-20001285-503544.html The bill passed a procedural hurdle on when the Senate reconvened on April 12. Several Republicans, including Olympia Snowe and Scott Brown joined with the Democrats to approve a motion (60-34) that would permit the bill to be presented for a vote. On Wednesday April 14, Republican senator George Voinovich of Ohio joined the Democrats in a 60-40 vote to "exempt the bill from budget challenges", moving it one step closer to approval.http://www.nytimes.com/2010/04/15/us/politics/15brfs-EXTENSIONOFU_BRF.html On April 14, the Senate approved an extension of unemployment benefits through early June. Three Republicans - Olympia Snowe, Susan Collins, and George Voinovich voted for the measure.http://voices.washingtonpost.com/44/2010/04/senate-approves-extension-of-u.html?wprss=44
Tier 5 Unemployment Benefits
Tiers 1-4 of the extended unemployment benefits expired on June 2, 2010. There is now debate about the possibility of a fifth unemployment tier being added. This new tier would help Americans who've been unemployed and unable to find new work for two years. However, no bill for possible tier 5 benefits exists at this time.http://cnmnewsnetwork.com/114955/tier-5-unemployment-benefits-extension-americans-count-on-hr-4213/
What are unemployment benefits
Where do Unemployment Funds Come From?
Every dollar of unemployment has to come from somewhere. Funds for the latest unemployment extension came from the federal Economic Stimulus Package. To receive the money, states had to agree to certain terms laid out by Congress.http://www.usatoday.com/news/nation/2009-03-15-unemployment_N.htm According to Kim Rupert, a fixed income analyst at Action Economics, the majority of the Economic Stimulus Package was financed through the sale of treasury bills rather than simply by printing more physical currency.http://money.cnn.com/galleries/2009/news/0901/gallery.money_summit/5.html The Bureau of Printing and Engraving has confirmed that the print order on US currency has not increased.http://money.cnn.com/galleries/2009/news/0901/gallery.money_summit/5.html
Do Unemployment Benefits Create Dependency?
Concerns have been raised in the media about the possibility of continued unemployment extensions encouraging people to remain unemployed. In the states that are most affected by the economic downturn, unemployed workers can receive benefits for up to 99 weeks. In the history of the program, benefits have never been available for this long. Senator Jon Kyl went as far as to state that "If anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work."http://www.washingtonpost.com/wp-dyn/content/article/2010/03/08/AR2010030804927.html
Part of the House Debate on H.R. 4851 - Continuing Extension Act of 2010
While Congressman Geoff Davis speaks in favor of extending unemployment benefits, he actually focuses his remarks on increasing jobs. He states that he supports the bill only to give the government time to address the root causes of unemployment.
2009 Unemployment Extension Background
The House of Representatives passed "The Emergency Unemployment Compensation Extension Act of 2009" (HR 3458), on Tuesday September 22, 2009 with a vote of 331-83.http://www.detnews.com/article/20090922/POLITICS03/909220386/1361/House-approves-extension-for-unemployment-benefits It extended unemployment benefits an additional thirteen weeks in states where the the three month rolling average for unemployment is over 8.5%. This was the fourth unemployment extension since the recession began.http://online.wsj.com/article/SB125329779060523537.html http://www.washingtonwatch.com/bills/show/111_HR_3404.html http://www.detnews.com/article/20090918/BIZ/909180431/U.S.-House-to-vote-Tuesday-on-unemployment-extension http://www.google.com/hostednews/ap/article/ALeqM5jqKTP0hRM1QjlmCkDhtAuS39uFFgD9AG25J00
The bill was expected to face little opposition in the Senate, where a similar bill was pending as S 1647.http://www.detnews.com/article/20090910/BIZ/909100455/1409/METRO/Pelosi--House-to-act-quickly-to-extend-jobless-benefits-for-Michiganians http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200909151422dowjonesdjonline000529&title=senior-senate-dems-urge-quick-extension-of-jobless-benefits http://michiganmessenger.com/26697/u-s-house-passes-unemployment-extension-bill The bill was slowed down by pressure from the senators who represented the 23 states who would not qualify for the extension under the House bill to amend the bill to extend benefits to all states.http://www.capitolhillreports.com/100109.htm While Senate majority leader Harry Reid proposed to give the 23 states not included in the bill an additional 4 weeks of benefits and reduce the maximum extension from 13 weeks to 12, New Hampshire Senator Jeanne Shaheen said she would propose an amendment to treat all states equally.http://www.detnews.com/article/20091002/BIZ/910020433/1361/Amendment-could-delay-jobless-benefits-bill Senator Jack Reed of Rhode Island proposed giving all states an additional 4 weeks, which would mean a 4 week extension for those states excluded from the House bill and a total of 17 weeks to those states with unemployment over 8.5%.http://www.cbsnews.com/stories/2009/10/05/ap/congress/main5363168.shtml Senator Charles Schumer said on October 4, 2009, on This Week with George Stephanopolus that he expected Reid's version to pass the Senate within a week.
The bill stalled in the Senate, as different factions all proposed alternate versions of the bill.
The Democratic Senate leaders who had been proposing alternate unemployment extension bills reached a compromise on October 8, 2009. The compromise bill, sponsored by Senators Harry Reid, Max Baucus, Jack Reed and Jeanne Shaheen extended unemployment benefits in states where the average unemployment rate over the past three months had exceeded 8.5% by 20 weeks. Unemployed workers in other states were to receive a 14 week extension. This exceeded the extension passed in the House, which extended unemployment benefits only in states with unemployment over 8.5% and only for 13 weeks.http://www.digitaljournal.com/article/280284
On October 27, 2009, the Senate voted to vote on the bill. No deadline for the actual vote was agreed upon, however.http://www.sun-sentinel.com/business/careers/sfl-ask-career,0,6220477.story The Republicans are urging that the bill be funded from unspent stimulus funds, rather than extending the FUTA tax.http://washingtonindependent.com/65781/clarifying-those-amendments-that-have-stalled-the-unemployment-debate
The fourth unemployment extension since this recession began was passed in the [[US Senate unanimously on November 4, 2009 and was signed into law by President Obama on November 6.http://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-of-benefits/ The bill extended unemployment benefits for up to 14 weeks, and was set to expire on December 23, 2009. Congress passed an extension to February 28, 2010 on December 19, 2009.http://economy.freedomblogging.com/2009/12/19/senate-approves-jobless-extension/
The extension expired on February 28, but both the House and Senate had been working on bills to extend the benefits once again.http://www.google.com/hostednews/ap/article/ALeqM5gRealXfnb4pWSBz1cZ2DDlNEJKegD9E5TSD00 On Tuesday, March 2, the Senate again took up a the bill, and Senator Jim Bunning again blocked a vote on the bill.http://www.wkyt.com/news/headlines/85971872.html However, Bunning caved in under pressure from fellow Republicans and passed a 30 day extension of unemployment benefits late into the night of March 2.http://abcnews.go.com/WN/senator-jim-bunning-tells-abc-news-working-deal/story?id=9988737 President Obama signed the bill into law immediately after passage. This bill was reported to cost the US government an additional $10 billion. Majority leader Harry Reid made a deal with Bunning that would allow a vote on another bill designed to cut costs in other areas to offset the cost of these new unemployment benefits.http://abcnews.go.com/WN/senator-jim-bunning-tells-abc-news-working-deal/story?id=9988737
On March 6, 2010, Senator Mitch McConnell stated that another extension would be passed sometime during the week of March 8, 2010.http://www.mlive.com/michigan-job-search/index.ssf/2010/03/republican_senator_mitch_mcconnell_says.html The Senate extended benefits through the end of 2010 on March 11, 2010.http://www.uppermichiganssource.com/news/story.aspx?id=428148 COBRA subsidies were extended through April 5th.http://www.examiner.com/x-27052-Rochester-Unemployment-Examiner~y2010m3d17-Unemployment-extension-legislation-No-news-is-not-good-news-Update--March-17
HR 3404
Representative Jim McDermott, of Washington State, sponsor of HR 3548, also sponsored an alternate version of the bill as HR 3404. The original bill would have provided an additional 13 weeks of benefits in states where the three month rolling average for unemployment is over 9%. http://jobsearch.about.com/od/unemployment/a/unempextension.htm 1.3 million Americans will lose unemployment benefits by the end of the year unless another extension is approved.http://www.google.com/hostednews/ap/article/ALeqM5jqKTP0hRM1QjlmCkDhtAuS39uFFgD9AG25J00
Unemployment Extension Act of 2008
President George W. Bush signed the Unemployment Extension Act of 2008 on Friday, November 21, 2008. The law allows people whose unemployment benefits have expired to extend their benefits by seven weeks in all 50 states. In states where the unemployment rate is over 6%, those entitled will be able to extend their benefits for an additional 13 weeks.http://money.cnn.com/2008/11/20/news/economy/unemployment_benefits/?postversion=200811211
In mid-November of 2008, there were over 10 million out-of-work Americans and the unemployment rate was the highest it had been since 1992.http://www.cbc.ca/world/story/2008/11/21/bush-bill.htmlhttp://www.buffalonews.com/180/story/487576.html
States Covered By Unemployment Extension
As of the date the unemployment extesion bill passed the House (September 22, 2009), the following states were eligible for extended benefits.
Senator Mike Johanns, a Republican from Nebraska says that the Democrats are to blame for stalling the Unemployment Extension bill because they have delayed the votes on the Republicans suggested amendments to the bill.
Greenspan Comments on U.S. Unemployment and Bank Lending
Alan Greenspan comments on the continued rise in unemployment and the need for an extension of benefits.
PBS: Extending Unemployment Benefits
PBS report that aired on August 28, 2009 discussing the pros and cons of a fourth unemployment extension.