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Hearing Reveals Urgency for Every State to Extend Unemployment Insurance Benefits Chairman McDermott Calls for Compassion and Common Sense April 23, 2009  Provisions of the American Recovery and Reinvestment Act that originated in the Income Security and Family Support Subcommittee provided an economic lifeline to millions of unemployed workers and are having a positive impact on Americans and the economy- that’s the conclusion of Chairman Jim McDermott who called today’s hearing to assess the effectiveness of provisions like extending unemployment insurance benefits and providing incentives for States to modernize their UI programs to meet the needs of workers in the 21st Century economy. “The early signs of progress are positive,” Chairman McDermott said. “That’s unmistakable and unbelievably important to the American people who need some help in this crisis.” The American Recovery and Reinvestment Act contained approximately $40 billion in several important provisions that originated in Chairman McDermott’s Income Security and Family Support Subcommittee. These include extending UI benefits providing an additional $25 a week- the first ever federally-funded weekly benefit increase, incentives without penalty for States to modernize their UI programs to meet the needs of the 21st Century American workforce, cutting taxes on UI benefits, and helping to make health care via COBRA more affordable while people look for work. “We heard from officials representing States with both Democratic and Republican Governors today who have taken advantage of federal help for extending benefits and who have begun to take advantage of the federal incentives to modernize State programs and I think ‘thank you for your help and support’ was a key message from both sides. McDermott said he hoped the reports today by a broad range of officials would encourage States that have so far declined to participate to change their minds. “Everything we have done in Congress has but one goal and intent- to help Americans who are innocent victims of this economic crisis. Today we learned we were right and that is good news for the American people,” McDermott said. McDermott noted that economists agree that UI benefits produce significant economic benefits. “In other words, while UI benefits help people who are out of work, UI benefits also help keep other people from losing their job because those UI dollars are being spent quickly and locally.” McDermott said his subcommittee will continue to monitor the UI implementation across the country and said he was prepared to offer new legislation, if necessary, later this year to continue to provide a positive response on behalf of the American people. |
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