Senate Approves Extension of Unemployment Insurance Benefits Championed by Reed

November 4, 2009 -- WASHINGTON, DC – In a positive step for Rhode Island's economy, the U.S. Senate today approved legislation championed by Senator Jack Reed (D-RI) to immediately extend unemployment benefits for up to 20 weeks for more than 4,000 Rhode Island job seekers who exhausted their current benefits. The Reid-Baucus-Reed-Shaheen legislation extends unemployment insurance benefits to jobless Americans in every state by up to 14 weeks, with an additional 6 weeks possible in high unemployment states like Rhode Island with rates at or above 8.5%.

The bill also contains tax breaks for small businesses and extends an existing $8,000 tax credit for first-time homebuyers, which was set to expire at the end of the month, until April 30, 2010. It makes homeowners who have lived in their current residence for at least five years and are looking to purchase a new home eligible for a $6,500 tax credit.

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“This is a smart investment that is paid for and will provide a major boost to our economy. With winter and the holidays approaching, this legislation cannot come soon enough for thousands of Rhode Islanders who are feeling the effects, not of the last 8 months but of the last 8 years, of the Bush economy. This legislation will help people to literally put food on the table. It will give them a sense of support and substance as they go forward,” said Reed, who authored the Unemployment Compensation Extension Act of 2008 (P.L.110-449) and helped authorize up to 33 additional weeks of emergency unemployment compensation for people in high unemployment states who exhausted their regular benefits.

Unemployment benefits are based on work history and past wages. The average weekly payment in Rhode Island is about $355.

Twenty-six states and Washington, DC, currently have unemployment rates of 8.5% or higher. Rhode Island has a 13% unemployment rate, and each week approximately 200 Rhode Islanders exhaust their benefits.

“After weeks of Republican delay, I am pleased we were finally able to pass this extension of unemployment benefits and tax cuts, which will provide a boost to our economy and real economic relief to millions of Americans still struggling under the weight of the Bush recession,” said Reed. “Today’s overwhelming victory demonstrates we never lacked the 60 votes to move to cloture; what we lacked was unanimous consent from our Republican colleagues so the bill could move forward. In delaying this bill, Senate Republicans denied unemployment benefits to thousands of middle-class families and millions of dollars in economic aid to their own states. Those who think impeding economic recovery and derailing health care reform serves the interests of the American people are sorely mistaken. The American people want progress and results. Today we gave them both.”

The Senate passed the bill today by a vote of 98-0. It must now be approved by the U.S. House of Representatives, which is expected to soon pass this legislation and send it to President Obama to be signed into law.

Source: Senator Jack Reed