WASHINGTON - Today, Rep. Edolphus “Ed” Towns (NY-10) voted to stimulate the local economy and provide stability to American families by extending unemployment insurance benefits to those hit hardest by the recession.  The Unemployment Compensation Act of 2009 (H.R. 3548), which passed the House today by a vote of 331 to 83, will extend immediate relief to the estimated 314,000 workers who would otherwise exhaust their unemployment benefits by the end of September, and one million more whose benefits would run out by the end of the year.

“This is just one more crucial step toward providing immediate relief to struggling families while also helping to jump start our economy,” said Rep. Towns.  “The families who receive these benefits will be able to put money directly into our local economy when they buy groceries, gas, and make their monthly mortgage payments.”

The Congressional Budget Office (CBO) has cited unemployment benefits as one of the most cost-effective forms of economic stimulus.  According to CBO, every dollar spent on unemployment benefits generates $1.63 in new demand, according to Moody’s chief economist Mark Zandi.  The extension is fully paid for, and strengthens reporting requirements to reduce unemployment insurance overpayments.

The legislation will help families in at least twenty-seven states with the highest unemployment rates, and where it is most difficult for workers to find employment.  Workers in these states who have exhausted, or will soon exhaust their benefits, will be eligible for an additional thirteen weeks of insurance, bringing their total eligibility for unemployment insurance to forty-six weeks.
“While we continue working to turn this economy around, this extension will provide much-needed relief to millions of unemployed Americans while they work to get back on their feet,” said Rep. Towns.

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