03.31.04

Cantwell Tries Again to Extend Unemployment Benefits, as 1.1 Million People Exhaust Benefits Today

Cantwell bill gaining more bipartisan support but rejected by Republican leadership

WASHINGTON, D.C. – Today 1.1 million displaced workers were left in the cold without any federal unemployment benefits because Republican leadership refuse to pass Sen. Maria Cantwell's (D-WA) bipartisan bill that would extend the unemployment benefits program. Today is the last day of the temporary unemployment benefit program. As a result, 21,500 people in Washington state have exhausted their state unemployment benefits and have no federal program to help them.

Cantwell explained on the Senate floor, "I've met with many of my constituents who have drained their pensions and used up savings that were supposed to send their kids to college, just to pay their bills. They're waiting for the federal government to fulfill its obligation, which is to help the economy in a time of recession."

Cantwell also explained how unemployment benefits serve as an economic stimulus.

Cantwell noted, "As a former business person, I view it as a stimulus. You can have an opportunity for people to keep putting money into our local economy and paying mortgages and more. It's helpful and Alan Greenspan said the same thing. In fact, he said, ‘In times like this, I've supported the extension of unemployment insurance.'"

There is growing support from others, as well. Treasury Secretary John Snow said last week, "If Congress acts, the president will sign the legislation."

Also White House Press Secretary Scott McClellan said, "We've always said we would work with Congress on the issue of unemployment benefits."

Cantwell told her colleagues, "If that isn't an invitation to pass this legislation today, I don't know what is."

Cantwell unsuccessfully tried to get her colleagues today to pass her bill, S. 2250 The Emergency Unemployment Compensation Act. Cantwell will continue to push to extend the unemployment benefits program, the Temporary Emergency Unemployment Compensation.

FACTS:

What exactly does Cantwell's bill to do? Cantwell's bill would extend the federal Temporary Emergency Unemployment Compensation program for six months. This means an additional 13 weeks of unemployment benefits in all states. Additionally, it will add another 13 weeks for high unemployment states, including Washington state.

Is this really needed? For every job opening, there are three unemployed workers.

As of today, 21,500 workers in the state have lost unemployment benefits. That number will grow to 46,163 workers by the end of the first six months of 2004.

How much would this cost and how do we pay for it? Extending TEUC would cost $5.4 billion. These funds would come from the federal unemployment trust fund, where there is currently $15.4 billion that is supposed to be used for unemployment insurance for situations like we face today.

How did the $15.4 billion get there? Employers pay a federal unemployment tax for each employee as a result of the Federal Unemployment Tax Act (FUTA). In nearly all cases, employers pay annually no more than $56.00 per employee. The fund is used to fund state workforce agencies and cover the costs of administering unemployment insurance and Job Service programs in all states.