June 17, 2008
Press Release
Reed Urges Bush Administration to Reverse Course and Extend Unemployment Insurance
WASHINGTON, DC -- In an effort to help jumpstart the economy and provide relief to Rhode Islanders and Americans across the country who are struggling to find employment, U.S. Senator Jack Reed (D-RI) today spoke on the floor of the U.S. Senate to support extending unemployment insurance (UI) benefits to workers whose regular benefits have ran out. Senate Democrats attempted to bring a bill to extend UI benefits to the floor this morning, but were procedurally thwarted.
“I am extremely disappointed that the Bush Administration and my Republican colleagues are preventing Democrats from moving forward legislation that will extend unemployment insurance benefits, stimulate the economy, and make a positive difference for Americans. Unemployment insurance benefits have a very high return on their investment. Individuals who receive these benefits are going to spend it on basic necessities; they are going to put fuel in their cars and buy food. This money is going to go right back in the economy,” said Reed, who has repeatedly called for an extension of UI benefits, including in the supplemental spending bill, and the economic stimulus package that passed without the provision earlier this year. “It is reckless, irresponsible, and terribly characteristic of this administration that they would oppose unemployment benefits for Americans while they continue to exalt us to spend billions of dollars in Iraq and Afghanistan. According to economists, the economic situation is significantly harsher now than at the start of the last recession and the need to extend these benefits is clear.”
The number of unemployed Rhode Islanders has risen to approximately 35,000, a figure which has been trending upward and is the highest since June 1994. Over 6.1 percent of Rhode Island’s population is currently jobless. This is the fourth highest unemployment in the United States and the highest rate in Rhode Island since August 1995.
A recent study found that for every $1 the federal government invests in UI, it adds $1.64 to the national GDP.
“According to the Center for Budget and Policy Priorities, we have extended unemployment insurance benefits seven times over the past half-century, and doing so has provided much-needed relief to workers. This is not something novel or unique. This is something we have done, and we should do,” noted Reed. “We cannot afford to delay extending these benefits any longer. People are struggling throughout this nation. It is our responsibility to respond to their needs, to give them a chance, to keep them afloat in a very stormy economic sea.”
The Senate version of the Iraq war supplemental spending bill, which was approved by a vote of 75-22 on May 22nd, will provide 13 additional weeks of UI to Rhode Islanders who have exhausted their regular UI benefits of up to 26 weeks. If Rhode Island still qualifies as a ‘high unemployment’ state when the measure is signed into law then these individuals could receive up to 26 additional weeks in total from the extension.
The House of Representatives passed a stand-alone bill to extend UI benefits by a vote of 274-137 last week. Now that Senate Republicans have blocked this UI legislation, the extension is likely to be included in another version of the supplemental spending bill. The final measure must then be approved by both chambers before it can be sent to the President to be signed into law.
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