Floor Situation

H.R. 6419 is expected to be considered on the House floor on Thursday, November 18, 2010, under a suspension of the rules, requiring a two-thirds majority vote for passage.  This legislation was introduced by Rep. Jim McDermott (D-WA) on November 17, 2010. 

Bill Summary

This bill would provide an extension of unemployment insurance through February 2011.  The bill will be declared as emergency spending and is expected to add $12 billion to the deficit. 

The bill would extend the emergency unemployment compensation program (EUC) and 100 percent of the extended benefits program (EB) funding through February 2011.

Possible Member Concerns:  This legislation would increase deficit by $12 billion, and add to the $13.795 trillion national debt.  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.  Also for consideration:

• According to the Ways and Means Committee, this bill would amount to $135 billion in total unemployment insurance extension bills since June 2008.  The continued large amount of spending on UI bills reflects the failure of the “job-creating” $1.2 trillion stimulus bill; and
• This Democrat sponsored bill, deemed as emergency legislation, will be another deficit financed—unpaid for bill—that avoids the Democrats’ “fiscally responsible” PAYGO law.

Background

The last unemployment insurance extension bill, H.R. 4213, was passed in July 2010 and increased spending by $35 billion.  That bill extended the EUC program and 100 percent federal financing of the EB program through November 30, 2010.

Cost

There is currently no cost estimate provided by the Congressional Budget Office for this bill, however, according to the Ways and Means Republican Staff, this bill is estimated to increase spending by $12 billion.