• October 24, 2014

1.3 million losing unemployment benefits today

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Posted: Saturday, December 28, 2013 4:30 am

WASHINGTON — More than 1 million Americans are bracing for a harrowing, post-Christmas jolt as extended federal unemployment benefits come to a sudden halt this weekend, with potentially significant implications for the recovering U.S. economy. A tense political battle likely looms when Congress reconvenes in the new, midterm election year.

Nudging Congress along, a vacationing President Barack Obama called two senators proposing an extension to offer his support. From Hawaii, Obama pledged Friday to push Congress to move quickly next year to address the “urgent economic priority,” the White House said.

For families dependent on cash assistance, the end of the federal government’s “emergency unemployment compensation” will mean some difficult belt-tightening as enrollees lose their average monthly stipend of $1,166.

Jobless rates could drop, but analysts said the economy may suffer with less money for consumers to spend on everything from clothes to cars. Having let the “emergency” program expire as part of a budget deal, it’s unclear if Congress has the appetite to start it anew.

An estimated 1.3 million people will be cut off when the federally funded unemployment payments end today.

Started under President George W. Bush, the benefits were designed as a cushion for the millions of U.S. citizens who lost their jobs in a recession and failed to find new ones while receiving state jobless benefits, which in most states expire after six months. Another 1.9 million people across the country are expected to exhaust their state benefits before the end of June.

But Obama has no quick fix. He hailed this month’s two-year budget agreement as a breakthrough of bipartisan cooperation while his administration works with Democratic allies in the House and Senate to revive an extension of jobless benefits for those unemployed more than six months.

The Obama administration said those payments have kept 11.4 million people out of poverty and benefited almost 17 million children. The cost of them since 2008 has totaled $225 billion.

House Speaker John Boehner spoke with Obama about an extension earlier this month. Boehner said his caucus would consider the possibility “as long as it’s paid for and as long as there are other efforts that will help get our economy moving once again.”

He said the White House has yet to introduce a plan that meets his standards.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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1 comment:

  • Smithjr38 posted at 8:35 am on Sat, Dec 28, 2013.

    Smithjr38 Posts: 114

    It is too bad that the time for unemployment benefits has run out. and the budget did not approve of them .
    However the retired and active military got as is going to get more cuts in pay and benefits .
    But I bet Obama and the Democrats to get votes will re instate the unemployment benefits for votes in 2014 and still screw the military and may even cut more into the military pay and benefits to reward those whom did nothing for the USA and did not spill blood or time in defense of this nation.

    And since the USA is now dumping on those who defending the USA and let the pols live high on the hog . It is time for we vets and active to give the pols in D.C some pay back .

    By forming a new Confederation of the USA and create a New Confederate Nation based on Freedom . Instead of slavery .

    Is it not ironic that the first black President has made the USA a slave to his policies and regulations back fully by the Democrats and media .

    So we vets need to create a new Nation the New confederate Nation with our own Supreme Court and courts and Judges and based on the original Constitution and our own congress made up of Vets who believe in Freedom of choice and making the people whom join the New Confederate the only lobbyist we will work for.

    And the new Confederate nation will have our new tax system and our own money ( based on Swiss Frances) and via our courts take over the Social Security system for all whom voted to succeed from the Obama Nation and join the new confederate nation.

     

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