McNerney Backs Unemployment Benefits Extension

Press Release

Today, Congressman Jerry McNerney (CA-11) backed an effort to provide an extension of unemployment benefits to 3.8 million unemployed workers to assist them with rapidly rising gas and food costs, while they continue to struggle to find work in the slowing economy.

H.R. 5749, Emergency Extended Unemployment Compensation Act, passed the House by a vote of 274 to 137.

"It's clear our economy is in trouble. As prices for gas, food and other necessities continue to rise and the economy contracts, providing a temporary extension of unemployment benefits for Americans who have lost their jobs is the right thing to do," said Rep. Jerry McNerney.

The Emergency Extended Unemployment Compensation Act will immediately provide up to 13 weeks of extended unemployment benefits in each state. In states with higher levels of unemployment, such as California, an additional 13 weeks would be available, for a total of 26 weeks of extended benefits.

Relief would run through March 2009 and benefit 3.8 million Americans. The extended benefits will be paid out of federal unemployment trust funds, which have more than enough reserves to cover the cost.

Extending these benefits is one of the most cost-effective and fast-acting ways to stimulate the economy because the money is spent quickly, according to the Congressional Budget Office. According to Mark Zandi, chief economist at Moody's Economy.com, every $1 spent on unemployment benefits generates $1.64 in new economic demand.

Source