Congressman Sander Levin

 
 
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For Immediate Release
September 26, 2008
  FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961
 
House Approves Extension of Unemployment Benefits as part of
Economic Stimulus Package
  Levin Supports Measure That Would Extend Benefits for an
Additional 20 Weeks in Michigan
 
(Washington D.C.)- The House of Representatives today approved an extension of unemployment benefits as part of a broader economic stimulus package to promote job creation and preservation, invest in infrastructure, and provide economic and energy assistance. The Job Creation and Unemployment Relief Act would provide a 7-week extension of unemployment benefits nationwide, with an additional 13-week extension for high unemployment states like Michigan (for a 20-week extension total).  The measure passed by a vote of 264-158.

“There are a lot of forgotten people in this country who have lost their jobs through no fault of their own,” said Rep. Levin.  “This bill addresses their needs.  If we don’t act over one million people will exhaust their benefits by the end of the year.”

The U.S. has lost jobs for eight straight months and there are now nearly 10 million Americans out of work.  When the first extension passed in June, there were seven states whose unemployment rates exceeded 6%.  Now there are thirteen.  There are nearly 3 unemployed people for every 1 new job available, making it extremely difficult for the jobless to find work before regular benefits expire.  The number of people unemployed for six months or more is well over twice as high as it was during the last recession. 

“The economy has gotten worse since we passed the extension in June.  It is clear that we have to keep the program going,” said Rep. Levin. 

Federal unemployment trust funds, set aside for benefit extensions in times of economic hardship, have more than enough reserves to cover the cost of a further extension of benefits.

Details on H.R. 7110: 

•    Would provide seven additional weeks of extended benefits (in addition to the 13-week benefit extension passed earlier this year, for a total of 20 weeks beyond regular benefits) for those who have exhausted their UI benefits across the country.
•    Would provide an additional 13 weeks of extended UI benefits (for 33 weeks total beyond regular benefits) for workers in states with high unemployment, defined as 6 percent or higher.
•    Is estimated to distribute about $6 billion in benefits.
•    The time frame for this extension would be the same as the first EUC program.  If H.R. 6867 is passed, those that originally filed for regular benefits on or after May 7, 2006 and have exhausted their regular benefits and file for an extension by March 28, 2009 can receive a total of 20 weeks of extended benefits.  Unemployed individuals in high unemployment states like Michigan that exhaust their regular benefits and their 20-week benefit extension by March 28, 2009 would be eligible to receive an additional 13 weeks of extended benefits, for a total of 33 weeks beyond regular benefits

•    Nearly 1.1 million Americans, 58,000 in Michigan, will have exhausted their original 13-week benefit extension by the end of 2008.

Facts on First Extended Unemployment Compensation Program in Michigan

•    Since the program began July 22, 84,000 long-term unemployed Michiganders have been helped by a 13-week unemployment insurance extension passed by Congress in June.
•    The program has so far distributed $164 million dollars to unemployed Michiganders

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