November 25, 2024
Business

Jobless facing loss of benefits

WASHINGTON – Already facing a sputtering economy and slow hiring, nearly 800,000 unemployed Americans face a new woe Saturday when their federal unemployment benefits end.

Democrats and labor unions, sensing political opportunity, are blaming the cuts on President Bush and Republicans in Congress. Bush, in a late show of support for an extension, urged Congress last week to get it done when lawmakers return to work next month.

“Regrettably, the House Republican leadership turned their backs on these families and refused to act, and the administration chose not to intervene before Congress adjourned,” Senate Democratic leader Tom Daschle said Friday. “This inaction by Republicans was unconscionable then and it is even more so now.”

Congress left for the year without extending the federal benefits, meaning that 750,000 to 800,000 unemployed workers will get cut off Saturday. Another 95,000 jobless workers will exhaust their state benefits each week afterward. Already, 1 million people have exhausted all of their benefits.

There were two competing bills that languished: A $5 billion plan from the Democrat-controlled Senate that would have extended benefits 13 weeks for people now receiving them or who were newly eligible, and a $900 million plan from the GOP-led House for five extra weeks for workers in a few states with high unemployment rates.

“It’s unfortunate that the Senate didn’t pick up our unemployment package and pass it,” said John Feehery, spokesman for House Speaker Dennis Hastert, R-Ill.

In Maine, about 1,800 workers will lose their benefits when the money runs out on Saturday, said Edward Gorham, president of the Maine AFL-CIO.

“These workers and their families are not the few top percent of the population who have big bank accounts and who benefit hugely from help-the-rich tax cuts,” he said. “These are ordinary working families who struggle to exist and pay their bills from paycheck to paycheck.”

Bush has now sent a “very strong message” to Congress to extend the benefits and make them retroactive, said Labor Department spokeswoman Kathleen Harrington. The agency is confident that benefits will be extended, she said, and has been relaying that to many governors who are calling with questions.

Some states will continue to process claims for benefits and at least one state, Idaho, will keep paying them with the expectation that funding will be available early next year, she said.

Democratic lawmakers rallied Friday in New York to put pressure on their Republican colleagues. Also, the AFL-CIO arranged a news conference in New York City featuring several unemployed workers whose benefits are being cut off.

Scott Carmichael, 45, of Rowlett, Texas, was one of them. He was laid off in June from his job at WorldCom, where he had worked for 17 years.

Carmichael’s state benefits are running out and he had counted on an extra 13 weeks of federal benefits that he now won’t get because of Congress’ inaction on the extension. The biweekly check of $574 helped him and his wife Laurie pay the mortgage and health care costs for their two children, ages 1 and 3.

Mrs. Carmichael is now considering returning to work, possibly at night, so she and her husband can alternate caring for their children.

“It’s really an act of discrimination,” she said, expressing anger at Congress. “They give themselves a raise before they leave and they leave all of us Americans high and dry.”

Congress authorized a 3.1 percent pay raise for themselves to $154,700 next year. Lawmakers’ salaries have risen $18,000 since 1999.

Joyce Smith, 52, of Ardmore, Tenn., exhausted her $190 weekly benefits in August. She was laid off from her factory job more than a year ago and still hasn’t found work.

“There’s not much out there. They don’t want people my age,” she said. “It’s been a panic and a struggle and you just go into a depression.”

As the last Congress neared its final days, with the rival Senate and House bills going nowhere, the White House stayed on the sidelines.

But Bush last week ended his silence and said in his radio address that extending benefits should be the “first order of business” for the new Congress. But he failed to say which plan he supported, who should be covered and for how long.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

You may also like