Congress set to approve UI extension.

Congressional negotiators have reportedly reached agreement on an “extenders” package that would provide for year-long extensions of expanded federal unemployment insurance (UI) benefits, the payroll tax cut, and a provision to prevent Medicare reimbursements cuts for physicians (commonly referred to as the “doc fix”). While details are still being hammered out, it appears that the final bill will not include a controversial House proposal to impose minimum educational requirements on UI recipients. It is expected that Congress could vote on the bill by this weekend, with passage in both chambers regarded as likely.

The programs included in the legislation are currently operating under a two-month extension passed by Congress in December, and are set to expire on February 29. The shorter extension became necessary after the Senate refused to accept a longer-term House version that made a range of significant programmatic changes to the UI program, including cutting the maximum weeks of benefits from the current 99 weeks to 59 weeks, authorizing states to drug test UI recipients, and allowing states to deduct up to $5 from weekly benefits of participants to pay for reemployment services. The House bill also included a requirement that UI recipients have a high school diploma or equivalent, or be enrolled and making “satisfactory progress” in a course leading to such a credential.

According to media reports, the new extenders bill will include a less severe reduction in the maximum number of weeks under UIlikely leveling down to a maximum of 73 weeks by the end of the year—and will also include a modified version of the House drug testing provision. The additional costs of the extension would be covered by requiring newly-hired federal employees to contribute more to their pension plans than current employees, and through sales of the public spectrum for satellite communications. The extension of the payroll tax cut, which accounts for about $100 billion of the bill’s overall $150 billion price tag, will not be offset.

National Skills Coalition strongly opposed the minimum educational requirement proposal, releasing an issue brief earlier this month that pointed out that such a provision would not only have a disproportionate impact on low-skilled, low-wage, and older workers, but would also place enormous strains on adult education and workforce systems already faced with deep federal and state budget cuts. In addition, NSC joined with more than 60 other national, state, and local organizations in a letter opposing the educational requirements to House Ways and Means chairman Dave Camp (R-MI) and Senate Finance chairman Max Baucus (D-MT). We commend Congress for rejecting this shortsighted and mean-spirited proposal, and look forward to working with lawmakers to advance policies to ensure that long-term unemployed workers and other jobseekers can acquire the skills they need to reenter the labor market and enhance their career prospects.