WASHINGTON – Rep. Benjamin L. Cardin introduced bipartisan legislation today that would aid workers affected by the Sept. 11th terrorist attacks and the accompanying economic slowdown. The measure would expand coverage to certain low-wage and part-time workers who are not currently covered by the unemployment compensation (UC) system, extend unemployment benefits to workers whose regular unemployment benefits have expired, and increase the amount of UC benefits.

“Hundreds of thousands of workers, through no fault of their own, have been laid off because of the shocks to our economy in the wake of terrorist attacks on this nation. In this period of economic uncertainty, we must protect American workers and their families who are imperiled by mounting job losses. We also need to stimulate consumer demand and economic growth. The best way to do this is to improve our unemployment compensation (UC) system and put money in the hands of those who are most in need,” said Rep. Cardin, who is the leading Democrat on the Human Resources Subcommittee.

The Temporary Unemployment Compensation Benefits Act, H.R. 3022 would permit the federal unemployment accounts to be used for one year to: provide benefits to certain unemployed workers who are not covered by the UC system; provide 13-weeks of extended benefits to workers whose regular UC has expired; and supplement the amount of benefits paid to UC recipients by 15%, providing the average recipient with an additional $135 a month.

The Congressman noted that efforts to improve our UC system must start with the recognition that many dislocated workers, particularly low-wage workers, do not receive assistance from the current system when laid off. Last December, the General Accounting Office (GAO) reported that only 18% of unemployed low-wage workers received benefits compared to 40% of higher-wage workers. Part of the problem, Rep. Cardin pointed out, is that too many unemployed workers are denied benefits because their most recent wages are not counted, and because those seeking part-time employment are not eligible for benefits.

To address some of the inequities in the UC system, Rep. Cardin’s measure would provide federally-funded UC coverage for one year to unemployed workers seeking part-time employment and to workers who require their last completed quarter of employment be included in their wage recorded to be eligible for benefits.

The total cost of this plan to aid the unemployed would be approximately $15 billion. Other co-sponsors of the measure include: Reps. Amo Houghton, R-NY; Charles Rangel, D-NY; Phil English, R-PA; Pete Stark, D-CA; and Sander Levin, D-MI. The benefit and administrative costs of the temporary unemployment compensation package would be fully funded through the Federal Unemployment Account (FUA).