Obama signs jobless-benefits extension

WASHINGTON — President Obama on Thursday signed a six-month extension of emergency jobless benefits for the long-term unemployed, hours after the House approved the measure.

The bill will revive a program that provides income support to those who have exhausted state benefits, restoring aid to about 2.5 million people who have seen their checks cut off since the program expired June 2.

It would provide a total of up to 99 weeks of support, including the state aid. Advocates for the unemployed said checks in some states are likely to go out quickly; in others, people can expect a delay of several weeks.

In Washington, the state Employment Security Department said it will take about a week to update its computer with the extension of federal jobless benefits. The department said Thursday it would mail claimants information on their status, and it asked people not to call and tie up phone lines. In June, more than 250,000 people in Washington received jobless benefits.

The vote in the House was 272 to 152, with 31 Republicans joining 241 Democrats in supporting the measure. Voting against were 142 Republicans and 10 Democrats. In the Washington delegation, Democrat Brian Baird joined Republicans Doc Hastings and Cathy McMorris Rodgers in voting no, while Republican Dave Reichert joined Democrats Norm Dicks, Jay Inslee, Rick Larsen, Jim McDermott and Adam Smith in voting for the measure.

The legislation was mired for months in an increasingly bitter election-year battle over whether the government should add to an already bloated national debt to bolster the sluggish economic recovery.

Republicans said no, saying the nation should pay for the $34 billion extension with unexpended funds from last year's economic-stimulus package.

"I haven't heard anybody say we shouldn't be extending unemployment benefits. The difference is one side wants to borrow 34 cents on the dollar, mainly from the Chinese, and send the bill to our children and our grandchildren," said Rep. Jeb Hensarling, R-Texas

Democrats said that emergency benefits have never been paid for — even during the Reagan administration — and accused Republicans of trying to undermine public faith in the Obama administration.

"They'll say it's because of the deficit. But in reality, they're simply trying to make this president fail at any cost," said Rep. Jim McDermott, D-Wash., who accused the GOP of trying to "infect" voters with "fiscal fear."

"The Republican leadership in Congress has decided that the way to get the White House back is by denying unemployment benefits to people who have lost their jobs through no fault of their own and show them that this government doesn't work," he said.

The extension was first introduced in a nearly $200 billion package of a variety of other economic measures sought by the Obama administration, including fresh aid to state governments and extended health-insurance subsidies for the unemployed. Republicans blasted the spending plan, and conservative Democrats revolted, demanding the package be scaled back.

Democratic leaders spent the next two months tossing various items overboard until nothing was left but the least controversial bit of spending: income support for unemployed workers. Democrats downsized even that program, dropping a $25-a-week bonus for all jobless workers.

The downsizing of the bill means workers who lost their jobs as of June 1 won't be eligible for a 65 percent federal subsidy to help pay for health insurance.

Eligibility for the financial help expired May 31. Those already receiving the benefit may continue to pay reduced premiums for up to 15 months, according to the Department of Labor.

The economic-stimulus plan passed in February 2009 created a subsidy covering 65 percent of fired employees' monthly health premiums. U.S. workers who are fired or resign from their jobs generally can remain on their former employers' health plan for as long as 18 months under the 1986 law known as Cobra. They typically pay the entire cost of coverage and a 2 percent administrative fee. The subsidy meant the average family paid $398 a month compared with $1,137, according to the Henry J. Kaiser Family Foundation in Menlo Park, Calif.

"Now that the subsidy is gone there will be more people who just won't be able to afford coverage," said Karyn Schwartz, a senior policy analyst for Kaiser.

Material from Bloomberg News, The Associated Press and The New York Times is included in this report.