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Thursday, July 22, 2010

U.S. Congress approves extension of unemployment benefits

WASHINGTON, DC- Resident Commissioner Pedro Pierluisi announced today that legislation authorizing the extension of unemployment benefits had been approved by both the House of Representatives, with Pierluisi’s strong support, and the Senate. Passage in both chambers clears the path for President Obama to sign the bill into law.

The bill authorizes an extension of unemployment benefits through November 30th, with the federal government to pay the full amount of these benefits.

“This extension of benefits provides critical relief to millions of American workers who have lost their jobs and have been unable to find new employment during the current economic downturn. The bill also relieves the financial burden on state governments, including the government of Puerto Rico, which will not have to assume half the cost of providing certain of these benefits to their residents, as would have been the case if the bill had not been approved,” Pierluisi said.

Workers in Puerto Rico who become unemployed are eligible to receive an initial 26 weeks of benefits. The amount of weekly benefits depends on the individual’s previous salary and length of employment. This benefit is paid for by the Puerto Rico government through its Unemployment Compensation Trust Fund.

Once these 26 weeks expire, unemployed individuals in Puerto Rico are eligible to receive an additional 53 weeks of unemployment benefits, paid for in full by the federal government through the Emergency Unemployment Compensation program. The bill approved today reauthorizes this program, which had expired last month.

Once these 79 weeks have expired, unemployed individuals are eligible to receive up to 20 weeks of additional benefits under the Extended Benefits program. Historically, 50% of the cost of this program was paid by the state government and 50% was paid by the federal government. Pursuant to a provision in the American Recovery and Reinvestment Act (ARRA), enacted in March 2009, the federal government assumed responsibility for the full cost. However, this ARRA provision expired on June 2, 2010. The bill approved today reauthorizes the 100% federal payment through November 2010, and will reimburse the government of Puerto Rico for the 50% share it has paid since June 2nd.

“As we continue to focus on efforts to promote job creation in the private sector, we also have the responsibility to offer emergency help to those workers that have lost their jobs during the economic crisis, so that they can fulfill their basic food and housing needs. These benefits are often the only source of income for unemployed individuals,” Pierluisi said.