WASHINGTON -- The following information was released by Iowa Senator Tom Harkin:
Senator Tom Harkin (D-IA), Chairman of the Senate Health, Education, Labor and Pensions Committee, today joined a group of 30 senators in urging an extension of unemployment insurance and health benefits for unemployed Americans. In a letter to Senate Majority Leader Harry Reid and Senate Finance Chairman Max Baucus, the senators argued these benefits must be extended through December 31, 2010. Last month, the Senate approved an extension of both programs through the end of February.
'Iowa's economy is a reflection of the national economic lag - the reality of which is a large number of Iowans relying on unemployment insurance and COBRA benefits just to get by,' said Harkin. 'Our state employment is being to show signs of improvement, but the announced closures of two meatpacking companies in western Iowa this week show that help is still needed. The extension of these benefits will go a long way to help Iowans as they look for work.'
Iowa's unemployment rate, though lower than the national average, averaged 6.6 percent in December, compared to one year ago when it was 4.4 percent - an increase of 50 percent. Currently some 40,000 jobless Iowans are on federal unemployment benefits.
The full text of the letter follows.
Dear Majority Leader Reid and Chairman Baucus,
We are writing to urge an extension of unemployment benefits and eligibility for the COBRA Premium Assistance Program through December 31, 2010. As our nation continues to battle double digit unemployment rates, we must act right away to continue vital safety net coverage for the American family.
We appreciate your leadership in December in securing a two-month extension to both of these programs in the Department of Defense Appropriations bill. But recent employment numbers are an indication that we must immediately extend jobless benefits and health assistance for individuals and families squeezed in this tighter economy. Nearly 40 percent of the unemployed - more than 6.1 million people - have been out of work for six months or longer. The average duration of unemployment is now at 29.1 weeks.
What is more, many of those individuals and their families lost their health coverage when they lost their jobs. On average, a monthly healthcare premium payment to cover a family costs $1,111, which represents 83.4% of the average unemployment check. In some states, the average unemployment check is less than the cost of a monthly healthcare plan premium.
Based on these figures, Congress must extend unemployment benefits and eligibility for the COBRA Premium Assistance Program through the end of the year. Short term extensions, while still helpful to families, only add strain to state agencies that must constantly re-tool their computer systems, and at the same time, continue to assist the millions still searching for work. As our economy continues on a path to recovery, we need a robust extension of safety net programs that have provided a lifeline to families since the recession began.
We urge quick action on the extension of the unemployment insurance provisions in the American Recovery and Reinvestment Act through December 31, 2010, including the Emergency Unemployment Compensation Program, full federal funding of the Extended Benefit program, an increase of $25 per week in state and federal benefits, and the suspension of the federal income tax on an individual's first $2,400 of unemployment benefits. In addition, we must also extend the eligibility period of the COBRA Premium Assistance Program through December 31, 2010.
Due to the importance of these issues, we respectfully request a meeting with you to discuss how we can provide for an extension of both programs. We thank you for your consideration of our request. All of our offices are committed to ensuring our constituents are able to properly provide for their families during this difficult time.
Sincerely,
Tom Harkin (D-IA)
Bob Casey (D-PA)
Jack Reed (D-RI)
Sherrod Brown (D-OH)
Christopher J. Dodd (D-CT)
Jay Rockefeller (D-WV)
Jeanne Shaheen (D-NH)
Al Franken (D-MN)
Carl Levin (D-MI)
Frank R. Lautenberg (D-NJ)
Debbie Stabenow (D-MI)
Roland W. Burris (D-IL)
Arlen Specter (D-PA)
John F. Kerry (D-MA)
Kirsten E. Gillibrand (D-NY)
Ron Wyden (D-OR)
Edward E. Kaufman (D-DE)
Sheldon Whitehouse (D-RI)
Barbara Boxer (D-CA)
Bernard Sanders (I-VT)
Patrick J. Leahy (D-VT)
Robert Menendez (D-NJ)
Herb Kohl (D-WI)
Tom Udall (D-NM)
Benjamin L. Cardin (D-MD)
Robert C. Byrd (D-WV)
Daniel Akaka (D-HI)
Jeff Merkley (D-OR)
Barbara Mikulski (D-MD)
Dianne Feinstein (D-CA)
Michael Bennet (D-CO)
