Tuesday, November 30, 2010

Midnight At The Oasis

Unemployment checks for 800,000 Americans run out at midnight tonight.  Another 1.2 million lose benefits at the end of next month.  Republicans have successfully blocked extending benefits to those out of work for 26 to 99 weeks and completely destroyed any chance of benefits after 99 weeks, saying every dime of it must be paid for in federal spending cuts elsewhere (unlike, say, tax cuts for the wealthy that the Republicans want extended.)

The real problem is that these federal programs are helping cash-strapped states out, and the states have no extra money.  As it is they're borrowing from the feds for unemployment for the first 26 weeks.


State unemployment agencies are very concerned about the impending end to these extended jobless payments, which they say people depend on to cover their rent and buy food.

"It's a critical safety net program," said Nancy Dunphy, New York State's deputy commissioner of labor for employment security. "This is the worst time of year to be running out of benefits."

Federal jobless payments, which last up to 73 weeks, kick in after the state-funded 26 weeks of coverage expire. These federal benefits are divided into four tiers of emergency unemployment compensation, which last between six and 20 weeks, followed by up to five months of extended benefits. The jobless must apply each time they move into a new tier.

Unemployed Americans who've just exhausted their state benefits are already blocked from entering the federal system in most states. They would have had to file their initial federal claim by this past weekend.

Those already in a federal emergency benefits system will not be able to move to the next tier after this coming weekend. However, they can continue to collect the benefits available in their current level. So those who just entered a tier could continue receiving benefits for awhile, but those who are near the end of their tier will see payments dry up sooner.

This is going to continue to be a problem, and will only get worse as the Republicans take over in January.  Unless a major extension can be worked out soon, millions of Americans are going to be facing a very long winter.

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