House Republicans on Friday released a three-part package to extend the payroll-tax deduction, unemployment insurance, and other benefits, but the proposed changes to the federal unemployment insurance program could end chances of any bipartisan support for the legislation.
The GOP bill reduces emergency federal unemployment benefits from the current maximum of 99 weeks to 79 weeks starting in January. The benefits would be reduced again later in the year to just 59 weeks, including the basic 26 weeks paid by most states.
But the most controversial piece of the legislation may be a provision that would grant waivers to states to allow them to use the federal funds for programs outside of the direct-benefit payments. Legislation with a similar provision was approved by a party-line vote in the House Ways and Means Committee in the spring, but never made it to the House floor.
Democrats in the committee attacked the effort to divert the funds away from direct-benefit payment.
On Thursday Rep. Sander Levin, D-Mich., the top Democrat on the House Ways and Means Committee, told reporters that any reforms that reduce benefits and divert funds from direct benefits would be unacceptable.
“In this unique period of long-term unemployment, to diminish the weeks of unemployment available to people who are looking for work is a non-starter for the unemployed and, I think, for the American people,” Levin said. He also said there would be serious opposition to any attempt to return to the flexibility proposals from earlier in the year.
The reduced benefit period would begin by immediately removing two tiers of the existing system. That would cut the basic emergency unemployment-compensation package to include 33 weeks of coverage above and beyond the state maximum.
The rest of the cuts would phase in gradually. Several tiers of unemployment are based on a three-year “look back” in which the unemployment level in a state must be above 6 percent and be higher than it was at any given time in the past three years.
Republican aides said the provision was based on elements of Obama’s own legislation. The "look back" is projected to begin eliminating some states from receiving federal payments as early as next January.
Still, there were some elements that could find Democratic support. The legislation includes a “means test” that would prevent wealthy individuals from collecting federal unemployment benefits. The measure received bipartisan support when it was floated in early discussions of the overall payroll-tax package. The GOP plan also includes several training and work-sharing options that Democrats have supported in the past.
Posted on
Sun, December 11, 2011
by Kelsey Snell