Unemployment insurance extension due to expire Dec. 28

December 13, 2013

California's Employment Development Department is notifying 222,000 Californians their federal unemployment insurance benefits will run out on Dec. 28. This federal program provides unemployment insurance payments to Californians after the state benefits have been exhausted.

California pays up to 26 weeks of unemployment insurance. The expiring program provided up to 37 additional weeks of unemployment insurance for long-term unemployed Californians.

The program expires at year end unless Congress votes to reauthorize it.

California currently has 617,000 on the unemployment rolls, including the 222,000 receiving federal benefits only.

As of Nov. 2013, the federal extension benefit ranged from 14 weeks in the 13 states with the lowest unemployment rates to a high of 47 weeks for the three states with the worst rates, Nevada, Mississippi and Illinois. California is among the 24 states with a federal unemployment extension of 37 weeks. Eight states have 18 weeks of extended benefits.

In August, California's unemployment rate dropped below 9 percent, triggering a reduction of benefits. This cut reduced the maximum extension available from 47 to 37 weeks for California's long-term unemployed. The current law (expiring at year end) has trigger points which automatically cut back the level of support provided to each state based on key unemployment statistics.

During the peak of the recession Congress authorized emergency benefits of up to 73 weeks of payments on top of the state caps. As the overall employment picture improved, the emergency benefits were scaled back. Federal benefits only become available after an individual's state benefits are exhausted.

If the program is not extended, payments will stop for an estimated 1.3 million Americans. Extending the program is not part of the recently announced budget compromise.

Three bills have been introduced in Congress aimed at extending these benefits by one or two years, but no action has been taken on them.

In December 2012, Congress approved a last minute extension which continued the program for 2013.

Congressman Jared Huffman and 22 other Democratic members of the California congressional delegation sent a letter to House Speaker John Boehner.

"Without swift Congressional action, on December 28, 2013, 1.3 million Americans will lose the life raft that helps them make ends meet while they search for employment," the letter states. "These are our friends and neighbors who want to work, pay taxes, and contribute to their community.

"The unemployment rate for California is currently at 8.9% after reaching a peak of 12.4% during the recent economic downturn. The unemployment rate has dropped significantly in recent months, but the number of job seekers still out of work underscores the need for Congress to extend Emergency Unemployment Compensation through the end of 2014."

California's Congressional delegation has 53 seats with 38 Democrats and 15 Republicans.


Source: By Linda Williams