House Republicans Block Unemployment Insurance Extension
San José, CA – On Nov. 18, Republicans in the House of Representatives blocked an attempt by the House Democrats to extend funding for Federal Unemployment Insurance, which expires on Nov. 30. If funding is not extended, almost a million jobless workers will be cut off from their benefits immediately. Over a million more will lose their benefits by the end of December.
Because of the recession, a record number of the unemployed have been out of work for more than six months. When these long-term unemployed people use up their state unemployment benefits, they can apply for Federal Emergency Unemployment Compensation, which can last an additional 53 weeks. In states with high unemployment rates, the Federal Extended Benefit (EB) is available for another 20 weeks. Altogether, unemployment insurance benefits can last up 99 weeks.
With the funding for federal extended unemployment insurance benefits expiring on Nov. 30, the long-term unemployed on the Federal Extended Benefits (EB) will be cut off immediately. Jobless workers receiving Federal Emergency Unemployment Compensation (EUC) will continue to collect benefits for up to five months. There are currently about four million long-term unemployed collecting EUC and almost a million more collecting EB. All five million will lose their benefits by the end of April, as will millions more who run out of their current state unemployment benefits.
Republicans claim to support extending funding for unemployment benefits, but that they want offsetting cuts. These same Republicans are pressing for an extension of the Bush-era tax cuts for the wealthiest Americans who make more than $250,000 per year, with no offsetting cut in spending. The Republican strategy is clear: cut taxes for the rich, driving up the budget deficit. Then, demand cuts in programs that serve the unemployed, the poor and the elderly in order to “balance the budget.”
Even worse, Republican governors are vowing to slash spending to balance their state governments’ budget deficits. 31 states have had to borrow more than $40 billion from the federal government to continue paying their state unemployment benefits. Indiana Governor Mitch Daniels, who is running for the Republican presidential nomination in 2012, is proposing to cut benefits for Indiana’s unemployment insurance, even though his state’s unemployment rate is over 10%.