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Committee on Ways and Means
Subcommittee on Human Resources

For Immediate Release
Contact: Press Office 202-225-8933
December 4, 2002

Herger Supports Proposed Repeal of Rule Allowing Use of Unemployment Funds for Non-Unemployed

WASHINGTON - Today, Wally Herger (R-CA), Chairman of the Ways and Means Subcommittee on Human Resources, issued the following statement in response to the Department of Labor’s proposed repeal of the Birth and Adoption Unemployment Compensation Rule of 2000 (BAA-UC) yesterday:

“My colleagues and I expressed concern about the Birth and Adoption Unemployment Compensation Rule of 2000 when it was implemented as an experimental program by the previous Administration. By now proposing to repeal this rule, the Department of Labor has taken an important step to prevent improper drains on already challenged State unemployment benefit accounts.

“Since its inception in the 1930s, the Nation’s unemployment compensation program has provided benefits to workers who lost their jobs through no fault of their own. To now use program funds to support those who choose to leave their jobs - no matter how worthwhile the purpose - would exhaust funds needed to support those who become unemployed. This rule also would lead to higher taxes, which is the last thing a rebounding economy needs.

“If States want to provide more benefits for new parents who choose to leave their jobs, they are free to design other programs to do so. But such benefits must not compromise our ability to help unemployed workers.”


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