Mr. Speaker, pursuant to House Resolution 656, I call up the bill (H.R. 444) to amend the Workforce Investment Act of 1998 to establish a Personal Reemployment Accounts grant program to assist Americans in returning to work, and ask for…
Mr. Speaker, pursuant to House Resolution 656, I call up the bill (H.R. 444) to amend the Workforce Investment Act of 1998 to establish a Personal Reemployment Accounts grant program to assist Americans in returning to work, and ask for its immediate consideration in the House.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and included extraneous material on H.R. 444.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the economic news over the last 8 months has been very encouraging. Republicans and President Bush have focused on creating jobs and opportunity, helping working Americans by providing tax relief, improving worker training and education to help Americans without work get back on their feet, and enhancing the competitiveness of employers both at home and abroad to ensure they continue to hire more and more American workers.
As recent data from the Labor Department shows, the U.S. is creating thousands of new jobs every month. The pro-growth agenda has created 1.1 million net new jobs over the last 8 months, and 625,000 jobs, net new jobs, I should say, in March and April alone. Moreover, the national unemployment rate declined to 5.6 percent in April, lower than the average unemployment rate during the 1970s, the 1980s, and the 1990s.
While this is welcome news for working Americans, we remain committed to ensuring that every displaced worker has the opportunity to find meaningful employment and access to job-training services that will help them find good-paying jobs. As President Bush has said, one worker out of work is one too many, and we have a responsibility to help working families in times when they need it most.
Job training and worker education is more important to this effort in today's changing economy now more than ever before. Every member of our society, including those who are most vulnerable and the hardest to employ, want to achieve independence and self-sufficiency. No American wants endless reliance on our government, and I think the President recognizes that and providing personal reemployment accounts represents one more way we are helping the unemployed by specifically tailoring job training and employment services to meet their unique needs.
Giving displaced workers the resources they need and continuing this economic expansion is critically important. That brings us to why we are here today: to highlight a new and innovative approach to helping the unemployed get back on their feet. The bill before us, the Worker Reemployment Accounts Act, allows demonstration funding under the Workforce Investment Act to be used by States and local workforce investment boards for a pilot project to offer personal reemployment accounts of up to $3,000.
With the funds from these accounts, unemployed workers may purchase a variety of different services to help them find a new job and to reenter the workforce, including job training, child care, transportation, housing assistance, relocation services, career counseling, computer classes, just to name a few. And all of these are accessible through the One-Stop Career Center system where unemployed workers already seek job training assistance.
A key component of this plan allows workers who become reemployed within 13 weeks to keep the balance of their account as a cash reemployment bonus. In addition, these reemployment accounts empower individual recipients to make choices appropriate for their own circumstances. Recipients will be able to create reemployment accounts that help them navigate all of the options that are available, such as career counseling or job training for a new profession. In providing choice and flexibility, I think we get people back to work into steady, good-paying jobs sooner.
For those who are struggling to get back on their feet, we in Congress, I think, have a responsibility to look for additional solutions to help them when they need it most. The intent of this bill is clear: this new benefit supplements and enhances the services that are already available for those who are most likely to face obstacles in finding and keeping new employment, whether it be unemployment benefits or the employment training programs offered through the Workforce Investment Act.
The bill before us is a pilot project, a scaled-back version of a more comprehensive proposal that the Committee on Education and the Workforce approved last year. Our goal here is to put this program to a test, see how it works in practice, and determine whether it truly gives unemployed workers an option, a workable option to help them improve their job search. The lessons learned through this pilot project will give Congress more information on how best to serve those who are looking for work.
Mr. Speaker, I want to thank the gentleman from Nevada (Mr. Porter) and the gentleman from California (Mr. McKeon) for their work on this measure and last year's bill as well. During hearings that we had last year, we heard from State leaders at a field hearing in Nevada about the practical benefits of these reemployment accounts in helping the unemployed. We also heard from Labor Secretary Elaine Chao, who said that the accounts ``will empower individuals by giving them more flexibility, personal choice, and
control over their job search and career.''
Over the past 2 years, we have taken numerous steps to help unemployed workers, and we are also in the process of reauthorizing the Federal job-training programs under the Workforce Investment Act. Millions of jobless workers should not have to wait for job-training reform, and Congress has an obligation this year to improve those job- training opportunities for American workers. Unfortunately, it appears, though, that some in the other body want to block major job-training legislation that would help strengthen training and retraining opportunities for American workers. I think if given the opportunity, we look forward to completing work on that legislation this year.
But Congress must act now to provide new, innovative options to help workers as quickly as possible, and the choice and flexibility available through personal reemployment accounts will help more Americans get back on their feet and find good jobs.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Nebraska (Mr. Osborne), a member of the Committee on Education and the Workforce.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, we probably would not be here today if the other body would actually go to conference on the reauthorization of the Workforce Investment Act. But I think all of us realize that they have been unwilling to go to conference, and we believe that we have got every responsibility known to man to help those people who are unemployed and need help.
Secondly, let me say that, once again, we are getting into a debate about the perfect becoming the enemy of the good. What this bill does is set up a pilot project that allows unemployed workers who qualify the option of this $3,000 reemployment bonus. The real key here is that they, the unemployed workers, get to decide what kind of training they need, what kind of education they might need, what kind of services they may need to help them get back on their feet and into good work. They get to decide, not some bureaucrat in some office somewhere. They get to decide.
And this option of allowing them that flexibility, I think, is worth trying. That is what we are asking for today: Let us try this. Let us see what happens. Let us see if this additional flexibility for unemployed workers does, in fact, help them get the training, retraining they may need to find a good job.
Mr. Speaker, I yield such time as he may consume to my colleague, the gentleman from Nevada (Mr. Porter) the author of this bill.
Mr. Speaker, I yield 3 minutes to the gentleman from California (Mr. McKeon), the original author and I would describe as the father of the Workforce Investment Act. I applaud him on his good work.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I am pleased to yield 3 minutes to the gentleman from Nevada (Mr. Porter), the author of this bill.
Mr. Speaker, I yield myself 1 minute.
There was a discussion here about what would happen if workers chose to take a $3,000 personal reemployment account and their ability to access services at the Career One Stops. I just want to set the record straight.
While it is true that recipients would be prohibited from accessing intensive or training services through the One Stop career system for 1 year after the creation of the account, unless, unless the person with the account chooses to purchase services there, however, all individuals remain eligible for the core services provided by the Career One Stop. Such services include job search and placement assistance, including career counseling, where appropriate, and access to labor market information.
Now the idea here is that we allow individuals $3,000, giving them the right to choose the types of services that they think will help them get back on their feet and find a good job. They can purchase those services at the Career One Stop or they can go down the street and go to a community college if they want. But the core services that the Career One Stops provide for all individuals, these persons with the $3,000 personal reemployment accounts, would still be eligible for those core services.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from Kansas (Mr. Tiahrt).
Mr. Speaker, I yield myself the balance of my time.
I think all of us realize that the American economy is changing, and I think it is changing at a more rapid pace than any of us would likely know. During a hearing several months ago, I found a number of statistics that I really found unusual. If we all think back for a moment to 1999, the American economy was in full bloom, the stock market was rising, employment levels were at all-time highs, yet in 1999 the American economy lost 35 million jobs. Yes, that is right. The American economy lost 35 million jobs. But, in 1999, the American economy also created 37 million new jobs, a net gain of 2 million jobs.
Now, let us move forward 3 years to 2002. And what happened in 2002? We had a recession, we had the effects of 9/11, we had a war going on in Afghanistan, and the American economy lost 35 million jobs in 2002. The American economy, though, in 2002, only created 33\1/2\ million new jobs.
This churning that we see in the American economy has always been there, but this churning we are now seeing is happening at a much faster pace than ever before; and, as a result, the need for job training, retraining, and educational services for American workers is at an all-time high.
During our hearing, when we had Alan Greenspan in front of our committee, he said this: ``We need to increase our efforts to ensure that as many of our citizens as possible have the opportunity to capture the benefits that flow from that engagement. For reasons that I shall elucidate shortly, one critical element in creating that opportunity is the provision of rigorous education and ongoing training to all members of our society. This proposal is not novel. It is, in fact, the strategy that we have followed successfully for most of the past century and a strategy that we now should embrace with renewed commitment.''
Education and training and ongoing education and training for the American workforce is absolutely critical, Mr. Speaker.
There has been a lot said here today about the nature of our economy and what is happening, but in a U.S. News and World Report that is out today, dated June 7, Mort Zuckerman, in his editorial, says this:
``The economy is well on a tear. New jobs are being generated in large numbers. Income is growing at twice the rate of last year. And the exhilaration is such that we will probably see 5 percent growth in the gross domestic product. The jobs reports of the past few months have changed market sentiment. Sixty-one percent of private industries surveyed have added workers. That is the highest in 4 years. Business confidence has surged to a 20-year high, and business spending is exploding, with even American manufacturing joining the party. Companies that once saved every nickel are laying out more and more money as capital equipment to meet growing orders in double-digit rates.''
He goes on to say later in the article, ``We are on a trajectory toward extraordinary growth in the second half of 2004 that will beget stronger job and income growth, stronger retail spending, and accelerating demand at a time when businesses have cut costs, raising profit margins to their highest level in years.
``Higher profits will beget more spending, which will beget more business expansion, which will beget more income for workers which should trigger yet another increase in demand.''
Do not look now, but the surging economy may be the real October Surprise. There is a real surge in our economy; and for Americans to take advantage of that surging economy, the kind of education and training that we allow under the Workforce Investment Act and provide for them should be helpful to them. These personal reemployment accounts are a pilot project to give them the choice about the kinds of services they need, the kinds of training or retraining they need to go out and take advantage of a surging economy to get a real job for the long term.
I do, Mr. Speaker.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Herger), the chairman of the Subcommittee on Human Resources of the Committee on Ways and Means that deals with this.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, as the gentleman from California (Mr. Herger) has pointed out, we have extended unemployment benefits on several occasions and have provided tens of billions of dollars in support for those extensions.
The motion to recommit, if Members believe this is going to provide unemployment extensions to people, they are kidding themselves. What the Kildee motion does is create a new program within the Workforce Investment Act to extend unemployment benefits. This is not the usual unemployment system that we have that works really well. Under this proposal, we create a new program that is not funded. There is no funding in this bill for the program that is being created, and all this is going to do is bring false hope to millions of Americans who are out there trying to seek work who are on unemployment.
But the worst part of the motion to recommit is that it totally eliminates the underlying bill. For those of us who believe personal reemployment accounts are a good idea and that projects ought to be initiated to allow people up to $3,000 to find the kind of training, retraining, and education they need in order to gain good employment, that entire bill is eliminated under the gentleman's motion to recommit.
I would urge my colleagues, let us not engage in a facade; let us not make empty promises to people who need our help and need our help badly. This is a new program. It is not funded. It will not extend unemployment benefits. Again, the worse part about it is it would eliminate the entire underlying bill and the personal reemployment accounts that we think will be helpful for American workers who are out of work. Mr. Speaker, I yield back the balance of my time.