April 10, 2003

Smith Introduces Bill to Extend Unemployment Benefits

Legislation Increases Benefits for Jobless, Provides Funding to States

WASHINGTON, D.C.– Today Senators Gordon Smith (R-OR) and Edward Kennedy (D-MA) introduced legislation to continue the Temporary Extended Unemployment Compensation (TEUC) program for an additional six months and provide an additional 26 weeks of unemployment benefits to out-of-work Oregonians. Oregon has had one of the highest unemployment rates in the country for the past year.

"The U.S. is in the midst of another jobless recovery and Oregon has borne the brunt of it," said Smith. "We cannot allow out-of-work Oregonians to be left out on a limb while this economy continues to struggle. This bill extends the helping hand of unemployment benefits a little longer so that Oregonians will have more time to find a good job at a livable wage."

The Unemployment Benefits Extension Act would extend the TEUC program through November, six months beyond the currently scheduled cut-off of new enrollees after May. In addition, the legislation would provide 26 weeks to all eligible workers with an additional seven weeks available in states with high unemployment. It would also add an additional 13 weeks of temporary extended benefits for workers who have run out of their state and federal benefits, for a total of up to 26 weeks; and it would expand access to unemployment benefits for workers who have lost low-wage and/or part-time employment.

Unemployment insurance programs are operated by the states but funded by the federal government. State unemployment insurance administrators often fall short of the funds they need to administer benefits and ensure that those eligible receive their benefits. This bill provides $500 million for administrative funding to ensure that states can administer the temporary benefits.

In October of 2001, Smith introduced the Temporary Emergency Unemployment Compensation Act of 2001, which was signed into law in February 2002. In addition, Smith introduced unemployment extension legislation in September 2002 and January 2003.

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