Lankford Bill Would Save Unemployment Payments for Those Who Need Them Most

Washington, DC — House Republican Policy Committee Chairman James Lankford (R-OK) released the following statement after reintroducing legislation to end unemployment insurance for Americans holding assets of more than $1 million a year.

“Millions of unemployed Americans rely on short-term unemployment insurance payments to make ends meet while they search for a new job, yet thousands of American millionaires receive federal unemployment payments annually,” said Lankford.

According to recent information from the IRS, as many as 3,171 households, who reported an adjusted gross income (AGI) of $1 million or more on their income tax returns, were paid a total of $40 million in unemployment benefits in 2010. These included 759 earning incomes more than $2 million, 143 exceeding $5 million and 33 exceeding $10 million. Multi-millionaires (people with incomes exceeding $2 million or more) were also paid $10.5 million in taxpayer-funded jobless benefits. 

The Ending Unemployment Payments to Jobless Millionaires Act would prohibit any unemployment insurance (UI) payments to Americans with resources in the preceding year of at least $1 million, as determined by the resource test of the Medicare Part D drug benefit subsidy. Resources in the benefit subsidy are defined by states and include savings and investments but it excludes the value of a primary residence or a car. The legislation would save at least $20 million a year and $100 million over the next five years.

“It is not fair that American taxpayers are forced to spend their tax dollars on unemployment payments to people who do not need temporary unemployment assistance. Unemployment insurance is meant to provide a brief financial safety net for laid-off workers seeking employment. We must make sure our safety net is short-term, transitional and only provided to people with the greatest need. 

“This is one of many common-sense proposals that will help restore the American people’s faith in how the federal government spends their money,” concluded Lankford.

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Contact: Kelly Ferguson (202) 225-2132