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House to vote on unemployment benefits extension

By ANDREW TAYLOR
July 22, 2010

Jobs fair in San Diego (AFP)

A House vote Thursday is expected to send President Barack Obama a long-sought measure to resume unemployment payments to millions of people whose benefits have lapsed.

Obama is set to sign the bill as soon as Congress can ship it to him. The Senate broke through months of stalemate in passing the measure Wednesday by a 59-39 vote. The House planned to vote around midday Thursday.

Some 2.5 million people who been out of work for six months or more and have seen their jobless benefits lapse would receive back payments within a few weeks.

Obama promised to sign the measure quickly once the House acts and denounced the “weeks of parliamentary roadblocks by a partisan minority” that had stalled approval in the Senate.

“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.

Under best-case scenarios, unemployed people who have been denied jobless benefits because of the partisan Senate standoff can expect retroactive payments as early as next week in some states.

At issue are jobless payments averaging $309 a week for almost 5 million people whose 26 weeks of state benefits have run out. Those people are enrolled in a federally financed program providing up to 73 additional weeks of unemployment benefits.

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.

Democrats have become more aggressive in attacking the GOP for opposing the measure, which has been stripped down so that it’s essentially limited to a $34 billion, six-month renewal of unemployment insurance for the chronically jobless.

Republicans say they support the benefits extension but insist any benefits be financed by cuts to programs elsewhere in the $3.7 trillion federal budget. Maine GOP moderates Olympia Snowe and Susan Collins were the only Republicans to support the bill Wednesday.

Sen. Ben Nelson of Nebraska was the only Democrat to break with his party to oppose the bill.

Democrats tout the economy-boosting effect of unemployment checks since most beneficiaries spend them immediately, and they say paying for them with cuts to other programs dilutes the stimulative effect.

“Extending unemployment insurance isn’t just the right thing to do. It’s also the smart thing to do for our economy,” said Sherrod Brown, D-Ohio.

Economists say the measure will probably have a modest beneficial effect on the economy. It represents less than one-quarter of 1 percent of the size of the $14.6 trillion economy, and is far smaller than last year’s $862 billion stimulus legislation.

Copyright © 2010 The Associated Press

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2 Responses to House to vote on unemployment benefits extension

  1. Barbara Wendlandt

    July 22, 2010 at 1:38 pm

    Why is it not being reported by any of the news media that the Republicans did not want to deny these payments, only PAY for them with TARP money or Stiimulus money? I find more and more false information being released by the media – both internet and broadcast. I realize that politics predisposes lies to put forth one agenda or another, but we are in a crisis situation in our country and need honesty to be restored.

  2. dd

    July 22, 2010 at 3:30 pm

    The endless unemployment extensions are hard to justify when I am scraping by having to do whatever it takes to pay my bills. As a “self-employed” / “freelancer” / “independent consultant” for the same company for 5 years I lost my income when the company went bankrupt. . I’ve cut down everything to the bone and beyond. Sold off personal property. Taken work way below my level, almost entry level. Moved downward in housing. But the “no-work pay” for others keeps getting extended and extended and extended supported by Federal Tax dollars. It leaves a bad taste. Either widen benefits to include the rest of us who did not work on staff or let us all stew in the same thin soup. Maybe more families hung out over the hairy, ragged edge will develop some political will. There is a difference between state and federal unemployment benefits. Federal unemployment benefits extend state unemployment benefits out to 26 weeks. They must be explicitly passed by Congress. They’re paid for out of our federal tax dollars we all pay. A law firm should start a class action suit for “us” who have paid taxes but don’t qualify for benefits including the 1 year worth of cobra subsidies.