05.11.04

Senate Refuses to Extend Unemployment Benefits; Fails to Help 2.1 Million Jobless Workers

WASHINGTON, D.C. – Today the U.S. Senate failed to extend unemployment benefits for jobless workers. Sen. Maria Cantwell's amendment that would provide unemployment insurance for 2.1 million workers in the next six months fell just one vote short of passage.

"We have lost 1.6 million jobs since President Bush took office, and too many people are struggling with long term unemployment," Cantwell said. "Until we erase this jobs deficit, we have an obligation to support families who are looking for work but can't find it."

Although the majority – 59 members – of the Senate supported Cantwell's legislation, it failed because Senate budget rules require a three-fifths supermajority.

"We had an opportunity to help 2.1 million jobless workers and we failed them," Cantwell stated.

Had Cantwell's amendment passed, over the next six months 2.1 million workers would have received federal unemployment benefits. In Washington state, nearly 50,000 jobless workers would have received the aid.

Extending unemployment benefits makes good economic sense because it injects much-needed cash into local economies and helps families looking for work make ends meet while the economy recovers. Federal Reserve Chairman Alan Greenspan recently endorsed an extension.

Although her amendment was rejected, Cantwell continued to support the JOBS bill (S. 1637) she co-sponsored and tried to amend. "This legislation will strengthen our national economy and is of particular importance to the trade dependent employers of the Northwest."

COMMENTS FROM THE SENATE FLOOR:

"…There are 1.5 million Americans who are without benefits. They are defaulting on mortgages, filing for bankruptcy, not able to take care of their own health insurance or that of their families. This is about giving them access to a fund that was created to give them support during these economic times." -- Sen. Maria Cantwell (D-WA)

"Our vote on the Cantwell amendment is a test of whether we can respond to the record number of jobless workers who have exhausted their benefits… I have to compliment Senator Cantwell. She's been just dogged in her efforts to get this amendment up… She's done a great job representing people who are out of work, who are unemployed, especially in her state of Washington, and that's why we're here today." -- Sen. Max Baucus (D-MT)

"I particularly want to underscore the determination and the perseverance of Senator Cantwell of Washington has shown in pressing this issue forward." -- Sen. Paul Sarbanes (D-MD)

FACTS:

What exactly does Cantwell's amendment to do? Cantwell's bill would extend the federal Temporary Emergency Unemployment Compensation (TEUC) 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 Idaho, Alaska, Oregon, Michigan, Pennsylvania and Wisconsin.

Is this really needed? For every job opening, there are three unemployed workers. Also, 1.5 million jobless workers have run out of state unemployment benefits since January.

How much would this cost and how do we pay for it? Extending TEUC would cost $5.8 billion. These funds would come from the federal unemployment trust fund, where there is currently $13.3 billion that is supposed to be used for unemployment insurance for situations like we face today.

How did the $13.3 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.