Source:
CNNLegislation calls for jobless Americans in high-unemployment states to get an additional 13 weeks of checks.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: September 18, 2009: 8:22 AM ET
NEW YORK (CNNMoney.com) -- Jobless Americans in high-unemployment states would see their benefits extended for another 13 weeks under legislation to be considered by Congress next Wednesday.
The House measure would lengthen benefits for the more than 300,000 people who live in states with unemployment rates greater than 8.5% and who are set to run out of compensation by the end of this month, a Democratic aide said. The legislation would also help another 1 million people who are scheduled to lose benefits by the end of the year.
Some 26 states and the District of Columbia fall into this category. Workers in other states could qualify if their state is expected to hit an 8.5% unemployment rate soon or meets other criteria. The national unemployment rate hit 9.7% in August, the highest in 26 years.
Pressure has been building on Capitol Hill to extend unemployment benefits as the jobless rate continues to rise and openings remain scarce. Although Congress has twice voted to extend benefits over the past year, an estimated 400,000 people are expected to lose their checks by the end of this month and 1.4 million will by the end of the year, according to the National Employment Law Project.
"Now is not the moment to pull the plug on America's jobless workers or to deal a body blow to the nation's nascent economic recovery," said Beth Shulman, the group's chair, in testimony before the Senate Finance Committee on Tuesday.
The cost of the additional benefits would be offset by extending for one year an employer-paid federal unemployment tax that has been in place for the past three decades, and by requiring that reporting on newly hired employees include a start date, which would reduce unemployment insurance overpayments.
The measure is expected to pass in the Democrat-controlled House, though it could face a challenge in the Senate. Senate Republicans could not be reached for comment Thursday, but Sen. Jim DeMint, R-S.C., last month told Fox News that he would vote in favor of extending benefits.
"Yes," DeMint said. "Yeah, we'll definitely support it."
Read more:
http://money.cnn.com/2009/09/17/news/economy/unemployment_benefits/index.htm?postversion=2009091718