Congress acts to extend unemployment benefits (Rep. Mike Honda)

The House of Representatives recently passed H.R. 3548, the Unemployment Compensation Extension Act. Enjoying broad bipartisan support, H.R. 3548 will provide up to 13 additional weeks of unemployment benefits to workers in high unemployment states who are about to run out of benefits. This extension will help at least 300,000 people in 27 states, DC and Puerto Rico who will exhaust all of their unemployment benefits by the end of September and over 1 million people in these states who will run out of unemployment by the end of December. With California reaching record unemployment, 12.2 percent, this bill is coming at a much needed time. I know there are many people in the 15th District that desperately need these benefits to make ends meet. The extension will ensure that these people will be able to continue providing for their families, while they navigate this difficult job market.

According to Moody’s Economy, extending these benefits is one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly. Every $1 spent on unemployment benefits generates $1.63 in new economic demand. The extension also targets those states with particularly high unemployment (with a three-month average total unemployment rate (TUR) of 8.5 percent, or a 13-week insured unemployment rate (IUR) above 6 percent), where it is more difficult for people to find new jobs.

The bill would not add to the deficit, as it will be paid for by extending the federal unemployment tax that has been in place for more than 30 years for one additional year, and it will promote accountability by requiring better reporting on newly hired employees start dates to reduce unemployment insurance overpayments - both of which were proposed by President Bush. 

Cross-posted from Rep. Honda's Blog.