What's New

Committee Schedule

Prints and Publications

Rules and Jurisdiction

Legislative Resources

Search the
Committee's site

Committee Membership

Committee News Releases

Chairmen's Portraits Page

FULL COMMITTEE

Tax Issues Only

SUBCOMMITTEES:

Trade

Oversight

Health

Social Security

Human Resources

Select Revenue Measures

Privacy, Copyright, and Permission to Link Statement

Committee on Ways and Means

For Immediate Release
Contact: Barbara Clay or Christin Tinsworth 202-225-8933
October 30, 2001

House-Passed Stimulus Bill Provides Dollars and Flexibility to Help Unemployed Workers

WASHINGTON – Under an economic stimulus package recently approved by the House of Representatives, states would have flexibility and additional resources to best help unemployed workers.

On Wednesday, October 24, the ‘Economic Security and Recovery Act of 2001’ (H.R. 3090) was approved by the House.   Stimulating economic growth and job creation, and providing health care and cash assistance to unemployed workers were the primary goals.

“Each state is different, and their needs differ,” said Ways and Means Chairman Bill Thomas (R-CA).   “Oregon isn’t West Virginia, and Indiana isn’t New Mexico.   The workforce’s needs vary like each state’s terrain.  Flexibility is the key, and that is what the House-passed economic stimulus legislation achieves.”

The approach taken in H.R. 3090 gives states more resources to choose what best fits the needs of their unemployed workers.   Every state would receive an immediate infusion of federal funds, totaling more than $9 billion in their unemployment benefit accounts to support unemployment needs.   Every state could use these funds to support the payment of regular unemployment needs.   Every state could use these funds to support the payment of regular unemployment benefits if more workers lose jobs and claim benefits. 

In the absence of such new funds, a number of states could quickly exhaust their current unemployment accounts, leading to state tax hikes, offsetting benefit cuts, or expensive borrowing.   Some may choose to use the new federal funds to provide a larger benefit to those who are unemployed.  Others might choose to extend the length of time benefits are provided.  Still other states may channel resources into additional training and job placement services to help workers get back on the job sooner.

In addition, $3 billion would be provided to support health care coverage for those who are unemployed and have lost their coverage and are not eligible for other federal health programs.  The first chart below provides an estimate of the distribution of the combined $12 billion among states.  The second chart illustrates the degree to which individual state unemployment account balances are strengthened through the addition of the $9 billion in new federal unemployment funds. 

 

State	State Balance (9/30/01) ($M)	State Share of New Federal Funds ($M)	New State Balance ($M)	Improvement in State Balance (%)
AL	373	133	506	36
AK	224	18	242	8
AZ	1,005	164	1,169	16
AR	224	76	300	34
CA	6,192	1075	7,267	17
CO	764	162	926	21
CT	689	117	806	17
DE	321	31	352	10
DC	302	27	329	9
FL	1,956	509	2,465	26
GA	1,689	288	1,977	17
HI	334	36	370	11
ID	248	37	285	15
IL	1,737	441	2,178	25
IN	1,436	208	1,644	14
IA	794	99	893	12
KS	505	94	599	19
KY	607	122	729	20
LA	1,527	126	1,653	8
ME	400	38	438	10
MD	876	165	1,041	19
MA	2,042	226	2,268	11
MI	2,835	340	3,175	12
MN	540	189	729	35
MS	682	79	761	12
MO	357	191	548	54
MT	183	22	205	12
NE	157	58	215	37
NV	526	78	604	15
NH	332	44	376	13
NJ	3,246	280	3,526	9
NM	582	45	627	8
NY	1,066	566	1,632	53
NC	846	282	1,128	33
ND	29	18	47	62
OH	2,097	406	2,503	19
OK	519	96	615	18
OR	1,544	115	1,659	7
PA	2,722	399	3,121	15
PR	531	58	589	11
RI	292	32	324	11
SC	709	128	837	18
SD	47	22	69	47
TN	749	193	942	26
TX	712	682	1,394	96
UT	590	72	662	12
VT	312	19	331	6
VA	1,018	246	1,264	24
VI	65	2	67	3
WA	1,916	194	2,110	10
WV	243	44	287	18
WI	1,681	196	1,877	12
WY	193	14	207	7
Total	51,566	9,302	60,868	NA