Stimulus Plan 2009: Unemployment Compensation and Insurance

The United States Senate released their compromised version of the stimulus package that President Obama is urging to be passed timely. What is in the new amendment? What does it mean for unemployed workers? This is what I have learned by viewing the proposed amendment dated 02/07/2009.

The first full paragraph of the proposed package says this:

'Making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to theunemployed, and State and local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes.'

Unemployment benefits for those who remain unemployed may get another 'extension', for lack of a better definition. According to the proposed stimulus package, this is how unemployed and displaced workers may be affected.

Found in TITLE XVI - GENERAL PROVISIONS - THIS ACT

DIVISION B - TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER PROVISIONS

TITLE II - ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

Please keep in mind that unemployment is mentioned in other titles as well. The previous titles and divisions are the main components of the proposed package that cover unemployment.

The bill states the desire to facilitate access to broadband service to low income, unemployed, aged, and otherwise vulnerable populations in order to provide educational and employment opportunities to members of these populations.

While I don't deem this is an important part of the bill, I do believe that those people who do not have such access to the Internet will benefit. There are countless job boards and job search sites that will definitely aid in finding work for the unemployed if they just had the Internet access.

The proposed package appropriates $400,000,000 to be extended for unemployment services. $250,000,000 of the funds is to be used by the states for reemployment services for unemployment insurance claimants.

The proposed plan will amend the Internal Revenue Code of 1986 by adding a Special Rule for 2009. The rule would go into effect as of taxable years beginning after December 31, 2008 if passed and would state, 'In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.'

In political jargon I believe that means that the total taxable unemployment compensation would be $2,400 for those who receive benefits over this amount. I am not a politician, or an expert; therefore I may be reading that incorrectly.

Now we come to the good part for unemployed citizens.

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM

This section of the proposed stimulus package would amend Section 4007 of the Supplemental Appropriations Act, 2008, as amended by section 4 of the Unemployment Compensation Extension Act of 2008.

Prior to the package the last day a claimant could file an extension claim under the Extension Act of 2008 was going to be March 31, 2009. The stimulus package proposes to strike that date from the Act and replace it with December 31, 2009.

It also moves to strike the last date of August 27, 2009 as the last claimable week under the Extension Act. The package proposes replacing this date with May 31, 2010.

This is probably some of the best news that unemployed citizens are going to hear. Many citizens were and are eligible for the extension, but feared that they would not make the cutoff by March 31.

In short, the March 31, 2009 date was the last day in which an initial claim could run out and an individual be considered eligible for the EUC. Then, they would only be allotted claim weeks up until and including August 27, 2009.

The proposed stimulus will add months onto unemployment claims for individuals who remain eligible for EUC, which is partly based on their state's unemployment rate.

March is not that far away and many people were starting to worry what they were going to do when their benefits ran out. There are fewer jobs available in the last few months and more people trying to fill them.

SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS

This section would allow any state that desires to do so to participate in an agreement with the Secretary of Labor. The section will allow the states to increase the minimum/maximum weekly benefits rates for individuals who are receiving unemployment benefits.

Those states that choose to participate will not be reducing the claimant's benefits by providing them with extra funds. After a state decides to participate, the state agency will determine if they qualify to participate by the unemployment rate of the state.

The amount payable would then be determined by the sate and that amount would be exceeded by $25 and will include dependents allowances.

The proposed package also has a section (SEC. 2003.) on Unemployment Compensation Modernization. The facts obtained in the section are somewhat confusing the everyday taxpayer, and appear to be a lot of legal and political jargon related to calendar base years, benefits weeks, dependent allowances amounts, and determining eligibility under the same rules and regulations as always.

It also mentions increasing staff assisted reemployment services for those individuals who are eligible to claim unemployment benefits and continue to be unemployed. Whether or not this may be mandatory is unknown.

The package also discusses health insurance and COBRA for unemployed and displaced workers. The proposed package would offer relief from the COBRA premiums, providing assistance in paying the often very high premiums to continue receiving health benefits for displaced workers.

Of course there will be probably be changes before the package passes as expected today. There have been significant delays in passing the stimulus package already. There have been a number of amendments by both the house and the senate.

These bills are often confusing for the normal citizen to understand. After this bill, or an amended version, passes, unemployment claimants should be notified of their stance related to their eligibility.

(This article is not intended for unemployed citizens to start celebrating an extension. This is merely what the stimulus package could do for unemployed workers. The views created above are my interpretation of what is in the proposed package and my opinions only. They are not the opinions of the President, Senate, House, or anyone else. I am not a political, or legal, jargon expert and therefore the meanings of statements in the proposed bill were interpreted solely by myself and my understanding of them.)

sources:

http://readthestimulus.org/

PDF file Release: http://readthestimulus.org/amdth1.pdf