Will Unemployment Extension Add Weeks of Unemployment Benefits?

Origins

Temporary federal funding provides up to 73 weeks of unemployment benefits on top of the 26 weeks that are available in state programs. Of the federal benefits, 53 weeks are available through a program called Emergency Unemployment Compensation. Congress authorized EUC in June 2008 for 13 weeks. In November of that year, it expanded that initial tier of federal benefits to 20 weeks and added a second tier of 13 weeks for residents of states with high unemployment. A November 2009 reauthorization increased Tier 2 to 14 weeks and made it automatically available regardless of the unemployment rate. At the same time, it added a third tier of 13 weeks and a fourth tier of six weeks for recipients, depending on their state's unemployment rate.

Twice in 2010, Congress reauthorized funding for federal unemployment benefits --- but only after much debate about whether providing such funding was appropriate given the federal debt and deficit. With these extensions, unlike with earlier versions, Congress did not create additional tiers and did not add to the weeks of eligibility for people receiving federal benefits. It simply ensured a maintenance of the previous extensions, allowing the unemployed to continue collecting between 60 and 99 weeks of benefits depending on their state's unemployment rate.

The most recent extension of federal benefits lasts through 2011. After Dec. 31, 2011, recipients will lose eligibility for the federal benefit tiers they have not yet started. For example, if you reach the deadline and have seven weeks to go in Tier 2, you could receive those remaining seven weeks of benefits but could not move on to collect Tier 3 or Tier 4 benefits. If another extension passes by the end of the year, it could allow those who have eligibility to continue receiving all available benefits. If the extension includes reduced funding, however, it could eliminate some weeks of eligibility.

A 2011 proposed bill by Democrats in the U.S. House of Representatives would add to the length of unemployment benefits eligibility for all recipients. The bill would tack on 14 weeks to Tier 1, allowing for between 74 and 113 weeks of benefits eligibility. Those who have exhausted their eligibility and remain unemployed could receive the additional benefits retrospectively. At publication time the bill is under consideration by the Ways and Means Committee, where its fate is uncertain with Republicans in the majority.