H.R. 5618: Restoration of Emergency Unemployment Compensation Act

H.R. 5618

Restoration of Emergency Unemployment Compensation Act

Sponsor
Rep. Jim McDermott

Date
June 30, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

H.R. 5618 is expected to be considered on Tuesday, June 29, 2010, under a closed rule.

The rule provides for one hour of debate and one Republican motion to recommit, with or without instructions.  H.R. 5618 was introduced on June 28, 2010, by Jim McDermott (D-WA).

Bill Summary

The rule incorporated an amendment into the  base bill:

The Amendment would prevent the payment of emergency unemployment compensation benefits to known or suspected terrorists, individuals convicted of sex offenses against minors, and unauthorized aliens.

This bill would provide an extension of unemployment insurance through November 2010.  The bill will be declared as emergency spending and add $34 billion to the deficit.  This bill does not extend the payment of the $25 per week additional payment that was provided in the “stimulus.”

H.R. 5618 would extend through November, the emergency unemployment compensation program and 100 percent of the federal funding for the extended benefit program.  The provision would preserve the 99 weeks of state and federal unemployment benefits.

The bill would require states to maintain average weekly benefit amounts available as of June 2, 2010, or lose eligibility for federal unemployment benefits.

The bill modifies the federal extended benefit eligibility rules to effectively prevent a significant reduction in benefit payments due to earnings occurring after a worker started collecting UI benefits.

The bill provides that the $33 billion in spending is designated as emergency spending; and therefore, not subject to pay-go.

Background

Current federal unemployment benefits lapsed at the end of May 2010. The bill, H.R. 4213, the American Jobs and Closing Loopholes Act of 2010 contained a provision to extend unemployment benefits, which passed through the House on May 28, 2010, but is currently stalled in the Senate as a result of increased taxes and deficit concerns. 

Member Concerns:  This legislation would increase spending by $33 billion and increase the deficit by $34 billion.  In addition, a number of economist have warned that prolonged unemployment benefits can theoretically increase unemployment duration by delaying individuals intensity to search for work;  economist have long recognized that the availability and value of UI benefits can lengthen the duration of unemployment.

Cost

The Congressional Budget Office estimates this bill to cost $33.040 billion over the next two years, including a net deficit increase of $34 billion over ten years.