House Approves Measure Extending Unemployment Benefits

The House of Representatives approved by a vote of 331 to 83 the Unemployment Compensation Extension Act of 2009 (H.R. 3548), a bill that would extend unemployment benefits for 13 weeks in states with high persistent unemployment (8.5% on a rolling three-month average). To pay for this measure, the bill extends for one year a federal unemployment tax (FUTA surtax) that is set to expire at the end of 2009, and has been in place for more than 30 years. This tax requires businesses to pay an annual tax of $14 per worker. The bill would also require that current reporting on newly hired employees include the date work begins to reduce overpayment of UI benefits. In July, Rep. Jim McDermott (D-Wash.), who introduced this legislation, introduced a more comprehensive unemployment insurance bill (H.R. 3404) that included the 13-week benefits extension. The shorter bill was introduced on September 10 as an emergency measure to address continuing high unemployment due to the economic downturn.

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