Senators Stabenow, Levin Announce $69 Million for Unemployment Insurance Modernization in Michigan

Funds made available through the American Recovery and Reinvestment Act which passed earlier this year

June 17, 2009 -- WASHINGTON — U.S. Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI) announced today that Michigan has been awarded $69,427,524 in American Recovery and Reinvestment Act (ARRA) funding through the Department of Labor (DOL) to provide unemployment benefits and administer unemployment assistance programs. The funding provides for an increase in benefits to reflect the recent earnings of workers, as well as an expansion of unemployment eligibility to individuals working part-time in the absence of full-time employment opportunities.

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“Helping out families coping with job loss is one of the most important, as well as one of the most effective components of the recovery package,” said Stabenow. “Economists agree that unemployment assistance is one of the most direct ways to put assistance in the pockets of the families that need it the most. As families across our state continue to struggle, we need to help get working families in Michigan, and all over the country, back on their feet.”

“This recovery act funding will help many families in Michigan who are struggling to get on their feet again during a difficult economic stretch,” said Levin. “Extending unemployment insurance is one of the most effective means we have for providing a boost to the economy in tough times, and I am hopeful that this assistance will act as a bridge for many of the hard-working men and women in Michigan who have felt the impact of the current recession.”

The ARRA allocated a total of $7 billion in unemployment insurance modernization incentive payments to states. For every $1 in unemployment benefits, studies estimate that $1.64 is added to the American economy. To qualify for recovery funding, states expand certain eligibility requirements for unemployment insurance. The size and duration of these benefits vary by state, and the amount and duration of the benefits are offset by earnings if the worker regains employment.

The ARRA also extended the duration for which unemployment benefits are payable, providing funding for an additional 33 weeks on top of the existing time period dictated by the state. Workers can now receive benefits for up to 59 weeks. Lastly, the ARRA also provides an additional $25 supplement for unemployment benefits through the end of 2009, while exempting unemployment benefits paid in 2009 up to $2,400 from federal income taxes. The supplement will automatically be added to benefit payments.

Source: Senator Carl Levin