Senate votes to extend unemployment insurance benefits

The resurgence of the American economy from the depths of the latest financial recession may be well underway, but the slow growth in the job sector continues to dominate headlines week after week. With millions of Americans remaining jobless despite recent modest economic growth, the Senate has voted to lengthen unemployment insurance coverage in an effort to ease the minds of those citizens struggling to stay afloat in this economy. The legislation, which passed the Senate this week in a 98-0 vote, will extend current unemployment coverage by 14 weeks for all states, while those areas with jobless rates over 8.5% will receive an additional six weeks of coverage, bringing the total extension to 20 weeks. If it passes the House later this week, and the White House sometime after that, the $2.4 billion legislation would be funded by an extension of the federal unemployment tax paid by employers to run through June, 2011. "With 15 million Americans still unemployed and vying for just 3 million available jobs, we did the right thing today by passing this bill and doing it in a fiscally responsible way," claims Montana's Democratic Senator and co-author of the bill, Max Baucus in an interview with CNN. "Today, we gave unemployed Americans the chance they need to get back on their feet, get through this tough time and get working again." The bill would only apply to those beneficiaries whose coverage lasts until December 3, between 1 and 2 million people according to Senate estimates. This latest extension of unemployment coverage has been on the docket for senators since September when the nation's unemployment rate reached a 26-year high of 9.8% - a number that CNN anticipates will only grow once the October statistics are collected. "The Unemployment Insurance program provides a vital safety net during times of economic hardship," says Iowa Senator Tom Harkin. "Workers have paid into the system through their hard work, so when they are out of a job they deserve support to see them through tough times. Additionally, today's amendment will not only help unemployed families weather the storm, it will also benefit all American workers in the long run by helping to get our economy back on track." Attached to the bill is an $8,000 homebuyer tax credit intended to assist home sales in the coming months. Unemployment Insurance News provided by Healthcare.com

News Headlines for Friday, November 6 2009