Nearly 40,000 Ohioans will see their unemployment benefits cut off a few days after Christmas because Congress will fail to vote on extending payments before going on recess until early next year.
The U.S. House failed to vote Thursday on a proposal by Democrats that would have extended benefits for three months, after Republicans blocked the effort. Since the House adjourns Friday until next year, there won’t be an opportunity to take the issue up before benefits expire Dec. 28. About 1.3 million Americans are expected to have their unemployment insurance terminated.
Senate Majority Leader Harry Reid said Thursday that extending benefits would be the first issue lawmakers take up after returning from the holiday recess. He said Congress would try to make the benefits retroactive.
“This is something we are focused on like a laser, and we’re going to continue working on it,” Reid said. “It’s been extremely difficult, procedurally, to move things along.”
At stake are the jobless benefits that kick in after a laid-off worker exhausts the first 26 weeks of unemployment. The first 26 weeks, known as state benefits, are funded by taxing employers. However, Ohioans are eligible for a maximum of 63 weeks of benefits, 37 of which are paid for by federal funding Congress must approve.
Democrats had initially proposed extending federal benefits for an additional year at $25 billion. Many Republicans opposed such an extension, calling it too costly. They were also concerned providing these benefits would add to the deficit, unless funding was identified to pay for the extension. In response, Democrats proposed funding the $6 billion, three-month extension with cuts to agriculture subsidies. Despite what many Democrats viewed as a compromise, they hadn’t given up their fight for a one-year extension.
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