Capitol Hill Reports - Shaheen to Propose Unemployment Benefits Extension for All 50 States

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Shaheen to Propose Unemployment Benefits Extension for All 50 States
Tuesday, October 6, 2009
Updated: 9:30 PM

Click here to read our latest update on the unemployment benefits extension bill.

Senator Jeanne Shaheen (D-NH) is planning to offer an amendment to the House-passed Unemployment Compensation Extension Act (H.R. 3548) that would extend emergency unemployment benefits by an additional 17 weeks for all 50 states. Shaheen's office indicated that Senate Majority Leader Harry Reid (D-NV) intends to bring H.R. 3548 to the floor later this week.

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As passed by the House, H.R. 3548 would provide a 13-week extension for only 27 states experiencing exceptionally high unemployment rates. Shaheen's state of New Hampshire would not receive an extension under the House proposal.

"Distinctions in state unemployment rates may make sense in Washington, but they don't make sense in New Hampshire and they don't make sense to the 15 million unemployed workers nationwide who are struggling to get by and get back to work," Shaheen said today. According to Shaheen's office, the cost of her proposal would be offset by extending the federal unemployment tax by an additional four to six months beyond the House-passed proposal.

Concerns over the price tag involving an unemployment extension to all 50 states compelled House Democrats to limit an extension to only those states where the unemployment rate is 8.5 percent or higher. The House's 13-week extension for 27 states will cost $1.4 billion, according to the bill's sponsor Jim McDermott (D-WA), but is fully paid for by extending the roughly $14 annual unemployment tax paid by employers for each employee.

Shaheen's amendment is expected to have at least 17 supporters in the Senate, 16 of which joined her in writing a letter last week to Reid and Senate Finance Chairman Max Baucus (D-MT) urging them to craft legislation that extends unemployment benefits to all 50 states.

However, a proposal drafted by Baucus and cosponsored by Reid could scuttle Shaheen's effort. The Baucus bill would provide a 13-week extension of benefits for the 27 states experiencing unemployment levels at or exceeding 8.5 percent, and a four-week extension for the remaining 23 states through Dec. 31, 2009. Baucus' legislation also would modify a provision in the Recovery Act to allow families receiving food stamps to remain eligible while receiving an additional $25 per week in unemployment insurance benefits. Similar to the House-passed version and Shaheen's proposal, the cost of the Baucus bill is offset by an extension of the federal unemployment tax through December 31, 2011.

Whatever language that ends up passing the Senate, both chambers will have to agree on a final version before sending the bill to President Obama.