Congress Extends Unemployment Benefits

- Also includes homebuyer, business tax relief extensions -

Washington, DC - Congressmen Patrick J. Kennedy and Jim Langevin voted again today to provide an additional 20 weeks of unemployment benefits for more than 4,000 Rhode Islanders, who have exhausted their current benefits. H.R. 3548, the Worker, Home Ownership and Business Assistance Act of 2009, extends unemployment insurance benefits in every state by 14 weeks, with an additional 6 weeks in high unemployment states like Rhode Island . The legislation had been held up in the Senate after originally passing the House in September.

“I commend the Senate leadership for finally delivering these benefits that will help families in need and immediately stimulate our economy.  After weeks of being stalled by an obstructionist minority, this package will extend unemployment benefits when Rhode Islanders need them the most. I also laud the efforts of Senator Jack Reed who championed passage of this bill.  I am pleased to support this measure, as well as much-needed aid to our housing market and local businesses,” said Kennedy.

“I voted today to help provide stability to Rhode Island families hit hardest by this recession,” said Langevin. “But while unemployment benefits and stimulus programs help jumpstart our economy in the short term, Congress must also work to build a new foundation for a lasting recovery.  That is why we are making much needed reforms to our health care and financial systems and investing in our education and workforce training."

Rhode Island has a 13 percent unemployment rate, and each week approximately 200 Rhode Islanders exhaust their benefits.   The Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus, and every dollar spent on unemployment benefits generates $1.63 in new demand.

H.R. 3548 also includes an extension of the $8,000 first-time homebuyer tax credit through April 30, 2010, and provides a $6,500 credit to new purchasers who have lived in their current residence for five years or more. It also helps military families struggling to make mortgage payments by making those payments tax-exempt.

Lastly, the legislation extends important tax breaks for businesses, allowing companies to carry back losses incurred in either 2008 or 2009 against income earned in any of the five prior years.

The bill now goes to the President’s desk for his signature.