Congress Extends Unemployment Benefits

March 9, 2002

Both the U.S. House of Representatives and Senate have passed a bill to extend unemployment compensation. The extension is for "up to"; thirteen additional weeks of benefits, with limited provisions for additional extensions in states with the highest unemployment rates. President Bush signed the bill into law on Saturday, March 9, ending months of wrangling over this basic worker-fairness issue.

While the extension is welcomed, it contains no provision to help with the costs of health care coverage for those unemployed. This issue, combined with Republican attempts to include various subsidies to corporations into the bill, nearly prevented its final passage. In the final bill, corporations will unfortunately receive substantial tax cuts. The final inclusion of the corporate tax cuts into the bill will also have a negative impact on already-stressed state budgets, as certain state tax collections will be reduced in areas where states index their tax levels to those of the federal government.

Those seeking exact answers to specific questions regarding eligibility and benefit levels for unemployment compensation should contact their nearest state unemployment office.