Congressman Dennis Cardoza
18th Congressional District of California

The report found that the Central Valley will be severely affected by the expiration of extended unemployment benefits, which began taking effect on January 1. Last month alone, 375,000 workers nationwide lost benefits. Two million addition workers will lose benefits by July 1 if Congress does not extend the benefit.

"It is time for Congress to act," Cardoza said. "The premature end of extended unemployment benefits will wreak havoc on areas like the Valley because of high unemployment rates. We are losing an economic stimulus of over $100 million."

Cardoza has supported efforts to provide an additional period of unemployment insurance. However, a recent successful vote on an amendment supporting the extension was met by promises from the House leadership that the amendment would ultimately be stripped from the legislation. As a result, despite the support of a majority of House members, prospects for an extension are slim.

Cardoza requested the report to estimate the impact of the termination of federal unemployment benefits on the region. The unemployment rates in the northern San Joaquin Valley are high: 10.1 percent in the Stockton-Lodi area, 10.9 percent in the Modesto area, and 14.3 percent in the Merced area. Of the people who will be losing their benefits, 8,400 are in the Stockton-Lodi area, 7,000 are in the Modesto area, and 4,000 are in the Merced area.

The federal-state unemployment insurance program has provided a safety net for unemployed workers during economic downturns and in the early stages of economic recoveries. Benefits are typically paid for a maximum of 26 weeks. During economic recessions or periods of high unemployment, the federal government extends unemployment benefits to ensure that workers who are unable to find a job do not lose all benefits. The current benefits extension of 13 weeks expired on December 31, 2003. Historically, extensions have lasted as long as two and one-half years.