Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Mr. REED. Mr. President, today I am introducing the Emergency Unemployment Compensation Extension Act of 2011 to ensure that millions of unemployed Americans will not lose desperately needed unemployment benefits and to provide relief to states and employers that are facing automatic penalties for overdrawing on their unemployment insurance trust fund during the worst unemployment crisis in modern history. I am pleased to be joined by my colleagues Senators Durbin, Whitehouse and Levin.

Fourteen million Americans are looking for work and the average length of unemployment is 40 weeks. Rhode Island has endured especially high and persistent rates of unemployment. If Congress fails to extend unemployment benefits or if benefits lapse for as little as a month--10,000 Rhode Islanders and 2 million Americans nationwide will fall through the safety-net and lose benefits. This would have far reaching impacts on families, communities, and businesses. It would seriously endanger our economic recovery as a whole.

The legislation would continue funding for the Federal unemployment programs for jobless workers through 2012 by extending the Emergency Unemployment Compensation Program and making improvements to the Extended Benefits Program.

The bill will also provide relief for States and employers that have been hit the hardest by our unemployment crisis and whose unemployment trust funds have been subjected to historic levels of stress by providing a 1 year moratorium on interest payments for States and tax relief for employers in States with outstanding unemployment trust fund loans.

Requiring States to make such interest repayments now, at a time when they face massive budget deficits and the economy is still weak does not make economic sense. Nor does requiring businesses to pay an additional tax of $21 per employee for the 2011 tax year.

This bill would provide immediate relief and certainty to 23 States with outstanding loans and all of their employers facing automatic tax increases that are otherwise set to be assessed as soon as January 31, 2012.

For States that have remained solvent during this crisis, they would receive a 2 percent interest bonus on trust fund reserves. This reflects the need to start moving in the direction of replenishing and maintaining solvent unemployment trust funds, which is why I joined Senator Durbin in introducing the Unemployment Insurance Solvency Act earlier this year.

Unfortunately, today's legislation is necessary because Republicans have blocked passage of the President's American Jobs Act. The American Jobs Act proposed extending the EUC and EB programs along with incorporating several important reforms to the Ul system. These reforms would provide enhanced assistance to the long-term unemployed in their job search and ensure benefits are being administered properly. Indeed, as we look to extend unemployment benefits to those who have been harmed by this economy through no fault of their own and aid States and employers, we must be mindful to enhance the integrity of the unemployment system and prevent improper payments, which hurt taxpayers and ultimately erode benefits for those that are most in need. It is my hope that Congress and States, which are responsible for administering these programs, continue to improve the integrity and functioning of our Ul system.

We know what policies will strengthen our recovery. Extending benefits and addressing solvency are among them and I urge my colleagues to join us in cosponsoring and pressing for action on this important legislation.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the Record,

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