House Approves Jobless Benefits Extention
Congress has approved legislation to restore unemployment insurance to people who have been out of work for six months or more, ending weeks of interruption for millions of people.
Michigan Congressman Sander Levin was in favor of the extending the benefits.
"Republicans in the Senate locked unemployment insurance. They stood not on the side, but in the way of a millions of Americans," Levin said.
"And, during those six weeks, over two-and-a-half million unemployed Americans exhausted their benefits, and they struggle to stay afloat while continuing to look for work in this difficult economy," he said.
The 272-152 House vote Thursday will send the measure to President Barack Obama, who has promised to quickly sign it. The House vote came less than 24 hours after a mostly party-line Senate vote Wednesday on the measure, which is just one piece of a larger Democratic jobs agenda that has otherwise mostly collapsed after months of battles with Republicans.
Norm Isotalo from the Michigan Energy, Labor and Economic Growth tells WWJ Newsradio 950 that some people in Michigan will again begin receiving unemployment benefits as soon as next Tuesday.
Shaun Thomas of the Unemployment Insurance Agency in Michigan said there are over 70,000 unemployed Michigan workers whose benefits have been affected by the expiration of the federal extensions.
"Restoring those benefits to those individuals will put money in their pockets and money in the economy," Thomas said.
Retroactive payments will go out next week in some states, while in others it could take a few weeks for beneficiaries to receive their money under the legislation, which provides much-needed help to 5 million eligible unemployed workers.
About half of those eligible have had their benefits cut off since funding expired June 2.
"Americans who are working day and night to get back on their feet and support their families in these tough economic times deserve more than obstruction and partisan game-playing," Obama said in a statement Wednesday night.
The measure is what remains of a Democratic effort launched in February to renew elements of last year's stimulus bill. But GOP opposition forced Democrats to drop $24 billion in aid to state governments to help them avoid layoffs and higher taxes, as well as a popular package of expired tax cuts and a health insurance subsidy for the unemployed.
Most Republicans opposed the measure because it would add $34 billion to a national debt that has hit $13 trillion, arguing that it should have been paid for with cuts to other programs, such as unspent money from last year's economic stimulus bill, which is earning mixed grades at best from voters as unemployment averages 9.5 percent nationwide.
"The other side says that these unemployment benefits stretching to almost two years are needed and must be added to the $13 trillion debt, even as they claim their trillion-dollar stimulus plan has been a success at creating millions of jobs," said Rep. Charles Boustany, R-La. "It makes you wonder if they're looking at the same jobs data as the rest of us."
It's a change of heart for many Republicans who voted for deficit-financed unemployment benefits in the past, including twice during George W. Bush's administration. Earlier this year, Republicans allowed a temporary unemployment measure to pass without even calling for a roll call vote.
Opinion polls show that deficits and debt are of increasing concern to voters, however, especially with Republicans' core conservative supporters and the tea party activists whose support they're courting in hopes of retaking control of Congress.
Democrats countered that many economists say unemployment benefits boost the economy since most beneficiaries spend them immediately, injecting money into the economy. But any such effects are likely to be modest when measured against a $14.6 trillion economy.
"Unemployment benefits protect those who are have lost their jobs through no fault of their own but would lead to more jobs, higher wages, and a stronger economy for all Americans," countered Speaker Nancy Pelosi, D-Calif. "The money will be spent immediately on necessity, injecting demand into the economy, creating jobs."
The first 26 weeks of jobless benefits are paid for by the states. Thursday's legislation renews a federally financed program providing up to 73 additional weeks of benefits in states with high unemployment rates.
About half of those eligible have had their benefits cut off since funding expired June 2. They are eligible for lump-sum retroactive payments that are typically delivered directly to their bank accounts or credited to state-issued debit cards.
In states like Pennsylvania and New York, the back payments should go out next week, officials said. In others, like Nevada and North Carolina, it may take a few weeks for all of those eligible to receive benefits.
(Copyright 2010 WWJ. All Rights Reserved. The The Associated Press contributed to this report)
