05 November 2009

U.S. Senate Approves Unemployment, Homebuyer's Credit Extension

from Detroit Free Press


The U.S. Senate voted unanimously tonight to extend unemployment benefits by as much as 14 weeks to out-of-work Americans, including about 100,000 Michiganders who have exhausted their jobless benefits or would do so by year’s end.

The legislation -- which had been hanging fire in the Senate for weeks -- still required a supermajority vote to close off debate as Republicans held it up, despite the unanimous vote in the end. It now returns to the House, where quick passage could come as early as Thursday.

It would then go to President Barack Obama, who is expected to sign it. It could be weeks, however, before states can start getting the extension checks out to people who have already exhausted their unemployment benefits.

Nowhere is the need being felt as greatly as in Michigan, which at 15.3% had the highest unemployment rate in the country in September.

Said Sen. Debbie Stabenow, Michigan Democrat, “Families throughout the state and across the country are struggling to put food on the table as many cope with finding new jobs. … This extension of unemployment insurance not only provides support when it is needed most, it is one of the fastest, most effective ways to stimulate our economy.”

Michigan’s Unemployment Insurance Agency projected earlier this year that 99,000 recipients would exhaust their benefits -- including up to 26 weeks of regular benefits, 33 weeks of Congress’ first emergency extension and 20 weeks of the state’s extended benefits program -- between May and the end of the year.

Sen. Carl Levin, a Michigan Democrat, said that during the debate, about 7,000 unemployed Americans lost their benefits each day and that by mid-October, 44,000 Michiganders had exhausted their benefits. UIA estimated another 18,000 would lose benefits between mid-October and mid-November.

“I wish it had come sooner,” said Levin.

Last year, Congress authorized up to 33 additional weeks of emergency unemployment compensation for people in hard-hit states who exhausted their regular benefits -- which are typically based on work history and wages and often last up to 26 weeks. Originally set to expire in March 2009, the federal stimulus bill extended the window for people to qualify for the additional benefits to the end of December.

That December 2009 deadline is still in place. But with the national unemployment rate still rising (from 7.6% in January to 9.8% in September) and the initial emergency unemployment extension having already run out for many people, legislators were intent on providing an additional round of help.

The House -- which is expected to accept the Senate version -- had earlier approved legislation some weeks ago authorizing up to 13 weeks of additional benefits for people living in states with unemployment rates of 8.5% or higher.

The Senate legislation went further, authorizing up to 14 additional weeks for out-of-work residents in every state in the nation, provided they’ve already exhausted the earlier authorized benefits or will do so by the end of the year.

Under the bill as crafted by Senate Finance Chairman Max Baucus of Montana and Senate Majority Leader Harry Reid of Nevada, an additional 6 weeks of benefits -- on top of the added 14 weeks -- would be available in states with unemployment higher than 8.5%. Twenty-six states and Washington, D.C., have rates of 8.5% or higher.

However, under the legislation as written, it is unclear how many people in those high unemployment states could ever collect that additional 6 weeks of benefits.

To get them, a person in one of the affected states would have to exhaust the newly authorized benefits of up to 14 weeks first, and do so by the end of the year. But there are only eight weeks left in 2009.

Some people, who would get eight weeks or less of new benefits under the law, would be the ones who would likely qualify for the extra six weeks under the legislation as written. But expect Congress to attempt before the end of the year to further extend the eligibility window -- albeit in another piece of legislation -- to give people in hard-hit states like Michigan more of a chance to collect those six weeks.

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