Short-term UI/COBRA extension passed.
Congress Passes Short-Term Extension of UI/COBRA Benefits, Focus Now Shifts to Longer-Term Extenders Bill
On March 2, the Senate passed the “Temporary Extension Act of 2010” (HR 4691), which provides for a one-month extension of expanded unemployment insurance (UI) benefits and COBRA health care subsidies for out-of-work Americans, as well as short-term extensions of federal surface transportation, small business loan, and other programs. The bill, which was held up for several days due to objections from Sen. Jim Bunning (R-KY), passed by a vote of 78-19.
At this moment, the Senate is considering a broader bill, the “American Workers, State, and Business Relief Act of 2010,” which would extend UI/COBRA benefits through the end of 2010, while renewing or extending a range of business tax credits, and other federal policies and programs. National Skills Coalition strongly supports the long-term extension of UI/COBRA to reduce the risk of further disruptions to unemployed workers and their families, and we urge Congress to move quickly on this matter. However, we are concerned that the bill currently does not include other critical investments that would help ensure America’s workers and businesses the skills they need to sustain economic recovery efforts and compete in the 21st-century economy:
Investing in Summer Youth Programs – Additional funding under the American Recovery and Reinvestment Act led to more than 300,000 young workers participating in subsidized work experience and job training programs in 2009. If state and local workforce officials are to replicate the success of this program in 2010, they must begin planning now – meaning Congress must move quickly to appropriate the necessary funds. Senator Murray (D-WA) is expected to offer an amendment to include funding for Summer Youth programs in the bill.
Extending the TANF Emergency Fund for one year, and increasing the federal reimbursement rate for subsidized job programs – Established under the Recovery Act, the TANF Emergency Fund provides for 80 percent federal reimbursement of certain state TANF expenditures, including subsidized employment programs. As many as 120,000 such jobs will be created by September 2010. Congress should extend the program for an additional year to support these efforts and increase the federal reimbursement rate to help cash-strapped states take advantage of the program.
Investing in On-the-Job Training (OJT) programs – OJT programs allow workers to earn a paycheck while developing career-enhancing skills, and allow employers to offset some upfront costs for hiring and training new employees through a targeted wage subsidy. Congress should provide dedicated funding under the Workforce Investment Act to support OJT programs on the local level.
With the Senate likely to vote on the longer-term extension as early as this week, workforce development advocates should weigh in with policymakers immediately and urge them to work to ensure that the bill includes both the UI/COBRA extension and these key training investments, ensuring all workers and businesses have the skills to contribute to our economic recovery. National Skills Coalition will continue to monitor this issue and update the field on further developments.
