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Republican inaction brings long, cold winter for nation's jobless

Date Posted: December 26 2003

WASHINGTON D.C. - For the second year in a row, Congressional Republicans are leaving Washington for the year without extending the federal Temporary Extended Unemployment Compensation (TEUC) program, allowing the program to end on Dec. 21.

Earlier this year, Congress was forced to restore benefits, after much public pressure, in January.

"Once again Republicans are leaving unemployed workers out in the cold for the holidays," said Michigan Rep. Sander Levin, (D-12th District) who sits on the House Ways and Means Committee. "No amount of talk about economic indicators by the Bush Administration can erase the fact that we are in a deep job hole in this country, with more than three million unemployed workers scrambling for every available job. And now because of this inaction, there will be no federal assistance during this difficult time for workers and their families."

The extended unemployment insurance program was enacted in March 2002. TEUC provides an additional 13 weeks of federal benefits once an individual exhausts their 26 weeks of state Unemployment Insurance benefits. Additionally, because of Michigan's high unemployment rate, under the TEUC program unemployed workers who exhaust the 13 weeks of federal benefits qualify for a second 13 weeks.

Furthermore, because the Michigan state legislature adopted an "alternative" state trigger (6.5% total unemployment rate), unemployed workers are qualified for a third 13 weeks that is paid 50-50 by the federal and state trust funds. But this state law expires at the end of the year.

Levin pointed out that the national unemployment rate (5.9% nationally) is higher today than it was when the program was established (5.7%). This will be the first time ever that an extended benefits program is scheduled to end when unemployment is higher than when the program started. Without an extension of the TEUC program, as of Dec. 21, approximately 80,000-90,000 Americans a week will lose eligibility for extended unemployment benefits.

"There is no justification with what is going on in the jobs market for the president to refuse to extend this jobs program," said Chris Owens, public policy director for the AFL-CIO.

President Bush has not committed to extending benefits. "We'll continue to work with Congress on that issue," said Bush spokesman Scott McClellan. "But I would point out the economy is strengthening."

In Michigan, with one of the highest unemployment rates in the nation (7.0 percent), this inaction will be very difficult for unemployed workers, Levin said. Under the extended program, Michigan's unemployed workers could access 39 weeks of additional federal assistance - but now they will receive no additional weeks once their 26 weeks of state benefits expire.

"The Congress returns on January 20, 2004," Levin said. "We will of course press them to extend the program at that time. In the meantime, we need to do everything we can to highlight the impact of this insensitivity to unemployed workers."