WASHINGTON, D.C. - House Education & the Workforce Committee Chairman John Boehner (R-OH), Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX), and 21^st Century Competitiveness Subcommittee Chairman Buck McKeon (R-CA) today introduced President Bush’s plan to expand the federal “safety net” for workers displaced in the wake of the September 11th attacks.

          As outlined last week by President Bush and Labor Secretary Elaine Chao, the bill - dubbed the Back to Work Act (H.R. 3112) - would authorize $3 billion in special National Emergency Grants (NEGs) to help displaced workers maintain health coverage, supplement their income, and receive job training as the economy recovers from its current slowdown.

          The bill would expand on President’s FY2002 budget, which invests more than $5 billion for job placement assistance, training, payments for workers needs and relocation costs. Just days after the attacks, the President approved a $25 million emergency Department of Labor grant for dislocated workers in New York. As of last week, the Department had distributed more than $100 million from the federal unemployment account to help states provide re-employment services to laid-off workers. The DOL helps to manage the nation's unemployment insurance system, funding over $30 billion to provide services and a steady income to dislocated workers and their families.

          “President Bush has called for immediate action to strengthen the safety net for workers whose livelihoods have been threatened by the September 11th attacks and the ripple effect they’ve had on America’s economy,” said House Education & the Workforce Committee Chairman John Boehner (R-OH). “We are eager to work with the President and Secretary Chao to provide further relief for families who may be in danger of slipping through the current safety net, and to help those who have been permanently laid-off return to work as quickly as possible.”

          "Many who call North Texas home have lost their jobs since September 11th. The Back to Work Act will give people much needed peace of mind about their health insurance and pocket books," said Johnson.

           "In the wake of the September 11th attacks, many workers and their families are dealing with job loss and other effects of the economic slowdown. Congress joins the President and Secretary Chao in efforts to support the skills training, employment and re-employment services necessary for U.S. employers and workers,” said McKeon. "I am pleased that the President has also recognized that existing job training services established under the Workforce Investment Act (WIA) will help all Americans through this difficult time. WIA fulfills the commitment that Congress made to the needs of displaced workers and ensures that displaced workers and their families get relief.”

          "At this time of great economic uncertainty, record number of layoffs, and an increasing demand for highly skilled workers, the United States' workforce investment efforts must be a top priority," McKeon added.

          In some states, local regions and communities are suffering due to mass layoffs and plant closings caused by the Sept. 11 tragedy. The Back to Work Act temporarily expands the National Emergency Grant program and authorizes $3 billion to help dislocated workers during this recovery period. This emergency expansion will be maintained for 18 months.

          Under the Back to Work Act, grants may be used by states to help ensure that dislocated workers: (1) maintain health insurance coverage; (2) receive some form of income support during the recovery period; and (3) return to the workforce as quickly as possible with the help of job training and job search assistance.

          Specifically, under the bill, states experiencing a major plant closure, mass or multiple layoffs, or dislocations are eligible for a special National Emergency Grant if the governor of a state certifies that the terrorist attacks on Sept. 11 contributed importantly to the closure, layoffs, or dislocations. Grants could be used by the states to:

• Pay up to 75 percent of health care premiums covered by COBRA for up to 10 months for laid off or dislocated workers (COBRA is a federal law that gives many workers the option of continuing their employer-provided health insurance -- at their own cost -- when they are laid off);
  
  
• Provide additional weeks of income support for individuals who have used up their unemployment compensation or individuals who are ineligible for unemployment compensation but are able to demonstrate a sufficient attachment to employment -- as long as those individuals are enrolled in training;
  
  
• Provide additional dollars to offer a full array of job search and training services, including customized training, placement assistance, and relocation expenses.

National Emergency Grants are federal grants administered by the Labor Secretary, and they may be awarded to any state experiencing plant closings or mass layoffs. Currently, the grants may be used to support job training and reemployment services and to make certain limited payments to individuals enrolled in training. The grants also may be used to help pay for services such as childcare and transportation, to help individuals complete training and transition back to work.