Mr. Speaker, I have a motion to instruct conferees at the desk. Mr. Speaker, at this time, I would like to yield 4 minutes to the gentlelady from Ohio (Ms. Kaptur). Mr. Speaker, I yield 5 minutes to the gentleman from Ohio (Mr. Kucinich).…
Mr. Speaker, I have a motion to instruct conferees at the desk.
Mr. Speaker, at this time, I would like to yield 4 minutes to the gentlelady from Ohio (Ms. Kaptur).
Mr. Speaker, I yield 5 minutes to the gentleman from Ohio (Mr. Kucinich).
Mr. Speaker, I yield myself such time as I may consume.
The reason why I offered this motion is to protect unemployment insurance for the millions of jobless Americans that qualify for it.
At the end of the last session, the House considered H.R. 3630, a bill that would extend the payroll tax cuts as well as the unemployment insurance. Unfortunately, the bill also included provisions that would undermine the unemployment insurance program as we know it today.
While I disagree with many of these provisions, my motion to instruct focuses on one particular provision: the provision would roll back a requirement that States must spend all unemployment funds solely on unemployment benefits.
Now, I know that there might be some who disagree with the size of the unemployment program and how many weeks individuals should be able to get their unemployment benefits. But I think we can all agree that money intended to help the unemployed make ends meet while they're looking for work should not be used for something else.
There are several reasons why maintaining the integrity of the unemployment program makes sense.
First, there are still more than 13 million Americans out of work as a result of the worst economic downturn since the Great Depression. These Americans rely on unemployment benefits to feed their families and pay the rent until they can find another job.
To allow States to use these funds intended to support these families for programs could result in those who have lost their jobs to receive a benefit that does not help them make ends meet and would be useless.
Some might argue that this provision will give States more flexibility to implement the unemployment program. I strongly support giving States the flexibility to implement national policies in a way that makes sense to some of the States, but there's already a great flexibility in the unemployment insurance program.
States already choose and adjust employers' tax rates, benefit levels, and duration and eligibility criteria. This provision goes too far and jeopardizes unemployment benefits themselves, and it won't help the millions of unemployed Americans get back to work.
Second, unemployment benefits help individuals find other jobs. According to CBO, extension of unemployment insurance benefits in the past few years increased both employment and participation in the labor force over what they would have been otherwise.
Recent research from the Brookings Institute concluded that unemployment insurance does not increase the time that people remain unemployed. They found that unemployment benefits may actually keep more people in the labor force through its requirement that beneficiaries seek work.
The fact is unemployment benefits remain a crucial resource for American workers who lost their jobs as a result of the Great Recession and not because of their job performance.
Using unemployment insurance funding for any purpose other than unemployment benefits for struggling families simply makes no sense.
Third, unemployment benefits stimulate the economy. CBO identified increasing aid to the unemployed as one of the policies that would have the largest effect on output in employment and therefore trigger economic growth. That's because individuals who receive
unemployment benefits don't put it in their savings account. They spend that money on things like putting food on the table for their families.
If we divert money from the unemployment program, this economic stimulus effort will be lost, and our economic recovery will be even slower than it is now.
I think it is important to remind ourselves that the unemployment benefits are given to eligible individuals who have previously had a job but have lost it for reasons out of their control.
During the Great Recession, millions of Americans were given pink slips. Even now, our economy has started to show small signs of recovery, but there are certain areas in Maine's labor market where the unemployment rate is more than 20 percent. These families aren't going on vacations or buying luxury cars. They're spending all of their money in their savings accounts, emptying their 401(k)s and simply doing without. They need unemployment benefits to help them stay afloat and to help them find a job.
My motion simply instructs conferees to take out this harmful provision so that we can ensure that the unemployment funding is spent on unemployment benefits.
In this environment of reining in government spending and making sure taxpayers' dollars are used effectively, I think it makes sense to make sure that the unemployment benefits cannot be spent on some other program that won't help families or the economy like the unemployment insurance.
So I urge my colleagues to support this motion to ensure that the unemployment benefits continue to go to Americans who lost their jobs and are trying to get back on their feet.
I reserve the balance of my time.
I yield 4 minutes to the gentlewoman from California (Ms. Woolsey).
Mr. Speaker, I yield 4 minutes to the gentleman from New Jersey (Mr. Holt).
I yield the gentleman an additional minute.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. Jackson Lee).
Mr. Speaker, I agree with part of the comments that the gentleman made. People do not want to sit home and collect a paycheck. They want to go to work. Some people definitely have to be trained for jobs. There is nothing in my motion that prevents States from offering training programs. Nothing in my motion will prevent States from encouraging people to get their GED. States have the flexibility to establish these programs on their own. My motion to instruct simply says that the benefits that were collected by the employers for unemployment benefits will have to be used for unemployment benefits. They cannot be used for training programs. They cannot be used to help subsidize businesses to pay for these employees. They have to be used for unemployment benefits.
This motion to instruct is important because if you look at my home State of Maine, there are more than 48,000 Mainers out of work. And I want to read a letter from one of my constituents whose story illustrates why its critical that unemployment benefits go to those who need them, not for some alternative program. The other alternative programs that I heard about earlier this evening, States can do that on their own. The only difference is they cannot use unemployment benefits.
I would like to read this letter from my constituent: ``I just became a ninety-niner, as those of us who have exhausted our unemployment benefits are called. Though some in Congress and the media think we comprise the bottom-feeders that the business creators needed to shed, this is not always the case.
``I have worked hard ever since I was a kid in East Millinocket doing odd jobs for my father, peddling newspapers. I went into the Army and benefited from the Vietnam-era GI Bill, and since have been glad to give back in the form of higher taxes for many years.
``In 2009, my former company moved to California and laid me and hundreds of others off, despite my having earned superior performance reviews for most of my years with them. To their credit, we were given outplacement service and a decent severance package.
``Nonetheless, I have since tried to find employment in my field, but find myself being screened out by junior human resource people who find me overqualified, too senior and/or too highly compensated for the job at hand. I am certain that some of this is ageism, which, though illegal, is still quietly sanctioned in this society. And now we face companies brazenly telling us that we need not apply if we have been out of work for more than 6 months.
``Please show some compassion for those of us who become unemployed through no fault of our own and who still hope to join the tax-paying ranks once again.''
This constituent of mine relies on unemployment benefits not because he wants to or because he's lazy, but because he can't find a job. As I mentioned, some labor markets in the State of Maine have over 20 percent unemployment. He is the reason I'm offering this motion to instruct today to ensure that the unemployment insurance program is preserved for Americans like him.
It requires that unemployment benefits will be used for those unemployed. The States have the flexibility to determine eligibility, the length, and the amount. They have that flexibility. So I urge my colleagues to vote for this motion to instruct and protect unemployment benefits for what they were intended for--for those who are unemployed--and not to help subsidize other programs that States might decide to create.
With that, Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.