Report: UI, aid to states, improved credit access will help recovery

Extending unemployment benefits “would have ripple effects across the economy, helping to boost growth,” according to the report. 

The Senate is poised to pass a long-delayed six-month extension that will restore benefits for 2.5 million of the long-term unemployed on Tuesday. 

Benefits beyond 26 weeks expired June 2, leaving a growing number of unemployed without their weekly checks amid a protracted uncertainty on whether Congress would act.

Senate Majority Leader Harry Reid (D-Nev.) put the measure on hold for an additional week as the chamber waits for the replacement for Sen. Robert Byrd (D-W.Va.), who died late last month, to arrive in Washington. 

The $34 billion measure, which isn’t paid for, is expected to pass with the help of Carte Goodwin, the former chief counsel for West Virginia Gov. Joe Manchin (D), who will be sworn in Tuesday afternoon.

Friday’s report suggested helping state and local governments to avoid layoffs and service cuts while increasing credit for small businesses that could spur much-needed private-sector hiring. 

The report recommends that lawmakers avoid cutting any targeted government spending, especially that focused on job creation. Pulling back funding could slow the recovery.