Last night, Rep. Dan Maffei voted to provide stability to American families by extending unemployment insurance benefits to those hit hardest by the recession. The Unemployment Compensation Act of 2009 will provide immediate assistance, extending relief to the estimated 314,000 workers who would otherwise exhaust their unemployment benefits by the end of September, and one million more whose benefits would run out by the end of the year. The bill extends unemployment benefits to states which have a three month average unemployment rate greater than 8.5 percent. New York State, with a three month average of 8.7 percent, is included in that group.
Rep Maffei said: “This is just one more crucial step to provide immediate relief to struggling families and get our economy moving in the right direction. We know that those families who receive these benefits will be putting money right back into our local economy.” Maffei continued, “While some economists are predicting the recession is ending, for people who are still looking for jobs it certainly does not feel like the end is here yet. This extension will help families our hardest hit areas make it through these tough times.”
The extension will provide immediate, effective stimulus to the local economy. The Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus, and every dollar spent on unemployment benefits generates $1.63 in new demand, according to Moody’s chief economist Mark Zandi. The extension is fully paid for, is deficit neutral, and strengthens reporting requirements to reduce unemployment insurance overpayments.
The legislation will help families in at least twenty-seven states with the highest unemployment rates, where it is most difficult for workers to find employment. Workers in these states who have exhausted or will soon exhaust their benefits will be eligible for an additional thirteen weeks of insurance, bringing the total to forty-six weeks.
