[Congressional Record Volume 153, Number 120 (Wednesday, July 25, 2007)]
[Senate]
[Pages S9920-S9921]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself, Ms. Snowe, Mr. Rockefeller, Mr. 
        Warner, and Ms. Cantwell):
  S. 1871. A bill to provide for special transfers of funds to States 
to promote certain improvements in State unemployment compensation 
laws; to the Committee on Finance.
  Mr. KENNEDY. Mr. President, today I am pleased to join my colleagues 
Senators Snowe, Rockefeller, Warner, and Cantwell in introducing the 
Unemployment Insurance Modernization Act, a bipartisan proposal to 
reform our unemployment insurance system.
  In today's troubled economy, too many working families are just one 
pink slip away from falling into poverty. The most recent recession hit 
workers particularly hard, wiping out millions of good jobs, many of 
which never came back. Today, almost 7 million Americans are 
unemployed.
  Fundamental shifts in the economy, including globalization and jobs 
being shipped overseas have caused declines in entire industries, with 
the result that large numbers are losing their long-time jobs and 
struggling to find new opportunities for work. But their options for 
new jobs are limited, and nearly one in six unemployed Americans are 
out of work for longer than 6 months. Another 1.5 million unemployed 
workers aren't even counted in the official unemployment statistics, 
because they have become frustrated and have given up their job search.
  The Federal Unemployment Insurance program was created in the 
Depression-era to help keep workers out of poverty between jobs. It has 
been a bedrock of security for working families in difficult times, 
providing much needed benefits to millions of workers each year. It has 
helped them pay the rent and put food on the table when they lose their 
job and face long periods of unemployment. It also has helped reduce 
economic fluctuations by building up a reserve of funds in good 
economic times that can be used as a cushion to soften the blow of job 
losses during recessions.
  The problem is that the current unemployment insurance system has not 
kept pace with the changing economy and left millions of Americans 
without benefits. In 2006, just 35 percent of unemployed Americans 
received unemployment benefits. In addition, today's much more mobile 
workforce means that employees are now at greater risk of suffering 
unemployment.
  These problems particularly affect low-wage workers. According to the 
Government Accountability Office, low-wage workers are only half as 
likely to receive UI benefits as other unemployed workers, even though 
low-wage workers are twice as likely to be unemployed.
  Modernizing unemployment insurance cannot single-handedly overcome 
all of the economic challenges facing our Nation, but it's a critical 
step in dealing with the hardships so many working families are facing.
  The current unemployment insurance program was designed as a 
partnership between states and the Federal

[[Page S9921]]

Government. States are given extraordinary flexibility to tailor the 
program's benefits to their unique situations, and many of them have 
been the laboratories of democracy in improving their unemployment 
insurance systems. Their experiments have often been successful in 
making the system more responsive to workers' needs.
  Some have improved coverage for low-wage and part-time workers. 
Others have made their systems more family-friendly, or have helped 
dislocated workers expand their skills through training.
  Our Unemployment Insurance Modernization Act builds on these 
successes by offering States strong financial incentives to adopt the 
best of the new programs.
  First, the bill encourages States to cover more low-wage workers. In 
30 states, many unemployed low-wage workers are not eligible for UI 
benefits because their most recent earnings are not counted. But 
failure to count these earnings may deny benefits altogether to some 
workers, and reduces the amount that many other workers receive. Our 
bill provides incentives for States to fix this unfair practice.
  Changing family life has also left many workers unable to collect 
unemployment benefits. Today, two-wage earner families are the norm, 
not the exception. When a parent moves to a different city to take a 
new job, the spouse usually has to quit work as well to keep their 
family together. But spouses cannot collect unemployment benefits in 
most States, nor can victims of domestic violence, if they have to 
leave work to find safety elsewhere, out of reach of their abuser. Our 
legislation encourages States to provide benefits in these cases as 
well.
  In addition to expanding the eligibility for benefits, our bill also 
supports state efforts to reemploy workers laid off by declining 
industries. Currently, the Trade Adjustment Assistance Program offers 
retraining benefits to some workers directly affected by trade, so that 
they can learn new skills and find worthwhile jobs in other industries. 
But employees who are only indirectly affected by trade often receive 
no benefits. Our bill helps close that gap by encouraging States to 
offer additional benefits to unemployed workers attending State-
approved training programs.
  Finally, our legislation provides needed funds to States to manage 
their unemployment insurance programs and reach out to workers. Many 
States are now forced to shut their unemployment offices because they 
can't afford to keep them open, leaving unemployed workers without any 
counseling to find new work or learn about the benefits available to 
them. These employment offices also provide a way for other programs, 
such as Trade Adjustment Assistance, to reach out to affected workers.
  The Unemployment Insurance Modernization Act will provide greater 
security to countless working families who are being left in the cold 
today. It will help long-term unemployed workers get the training they 
need to find new jobs. It will give States the resources and 
flexibility they need to revitalize their programs and serve working 
families more effectively.
  I commend my colleagues on both sides of the aisle who are joining to 
introduce this important legislation. We all agree that now is the time 
for these reforms. In the global economy, it is more urgent than ever 
for every American worker to be able to contribute to the economy. To 
achieve that goal, we need to make sure that all unemployed workers 
have the support they need to get back on their feet and rejoin the 
workforce. Our future prosperity depends on it.
                                 ______