[Congressional Record Volume 153, Number 123 (Monday, July 30, 2007)]
[Senate]
[Page S10310]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                UNEMPLOYMENT INSURANCE MODERNIZATION ACT

  Mr. WARNER. Madam. President, today I rise in support of the 
Unemployment Insurance Modernization Act which was introduced on July 
25. I am pleased to join my colleagues Senators Edward M. Kennedy, 
Olympia J. Snowe, John D. Rockefeller IV, and Maria Cantwell to 
introduce this bipartisan proposal which seeks to encourage States to 
modernize their unemployment insurance systems. The Unemployment 
Insurance Modernization Act would make $7 billion in incentive payments 
available to States to encourage them to expand eligibility for 
benefits and provide training to workers struggling with long-term 
unemployment.
  The unemployment insurance, UI, program must be reformed to address 
fundamental shifts in the economy. The UI system provides needed 
benefits to millions of U.S. workers each year. But the system needs to 
be updated to better assist today's more highly mobile workforce and 
long-term unemployed workers left behind by declining industries. 
Today, many unemployed workers do not qualify for benefits because 
their most recent work is not taken into account. Others exhaust their 
benefits before finding work, joining 1.1 million long-term unemployed 
workers and an additional 1.5 million discouraged job-seekers 
struggling to get by. For these reasons, only 35 percent of unemployed 
workers currently collect unemployment benefits.
  The UI Modernization Act sets aside $7 billion from tax receipts 
authorized under the Federal Unemployment Tax Act, FUTA, to provide 
incentive payments to encourage States to update their UI systems. The 
bill rewards states for: (1) removing barriers that block coverage for 
low-wage and part-time workers; (2) ensuring a more family-friendly UI 
system; and (3) helping dislocated workers increase their skills. It 
also provides $500 million in funding to States to improve the 
administration of their unemployment compensation systems. These 
administrative payments are fully paid for from the existing UI trust 
fund.
  The UI Modernization Act would give States the resources and 
flexibility they need to pass important reforms. Each State would have 
a chance to receive a share of the $7 billion set aside for incentive 
payments. To receive one-third of its allotted funds, a State must 
adopt an ``alternative base period'' allowing workers to meet 
eligibility requirements by counting their most recent wages. This 
makes the system--which has traditionally relied on wage data that is 
up to 6 months old more accurate and helps workers who have recently 
satisfied earnings requirements to collect the benefits they deserve. 
States that have already adopted such a system would also receive these 
incentive payments.
  States will receive the additional two-thirds of their share of funds 
if they adopt or have adopted two of the following reforms that benefit 
workers: (1) provide unemployment compensation for workers who have 
voluntarily left their jobs due to the illness or disability of an 
immediate family member, the relocation of a spouse for employment, or 
domestic violence; (2) provide training benefits to unemployed workers 
laid off from a ``declining'' occupation who are enrolled in a State-
approved training program for entry into a high-demand occupation; (3) 
provide unemployment compensation benefits to individuals seeking part-
time work; (4) raise maximum compensation caps so that all long-term 
unemployed workers can receive a full 26 weeks of benefits; or (5) pay 
unemployed workers at least an extra $15 per week for each of the 
worker's dependents.
  Mr. President, in periods of unemployment, workers need a sound 
program of training and benefits to find new and rewarding 
opportunities. This bill will provide important resources to States 
like Virginia, as they improve their programs to help workers and their 
families in times of need.

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