Nearly 10,000 in Virginia to Lose Federal Long-Term Unemployment Benefits

Congress may revisit the issue when they return from recess.

The Commonwealth saw 9,700 people lose their long-term federal unemployment benefits Saturday. Photo courtesy of Virginia Employment Law Journal)
The Commonwealth saw 9,700 people lose their long-term federal unemployment benefits Saturday. Photo courtesy of Virginia Employment Law Journal)
By Mary Ann Barton

While the overall employment picture is good in Northern Virginia compared to the rest of the country, the Commonwealth saw 9,700 people lose their long-term federal unemployment benefits Saturday. Those are the benefits that kick in after Virginia unemployment benefits have expired.

The average weekly unemployment benefits check for Virginia residents is $296.95.

Across the country, 1.3 million Americans Saturday were expected to immediately lose their long-term federal unemployment insurance coverage. 

That's because Congress passed a budget compromise before Christmas that did not include extending the federal Emergency Unemployment Compensation program. 

"No one got everything they wanted out of this deal," Congressman Gerry Connolly (D-11th) said in a statement. "Indeed, I along with many of my colleagues would have preferred to see an extension of long-term unemployment benefits, which has a very direct and significant benefit on more than 1 million families and our national and local economies. Every dollar of assistance generates $1.64 in economic activity in the community. Sadly, it was not addressed here, but we will continue to push the Speaker to bring it up separately to help those still struggling to find work."

The federal program was started in June 2008, when Congress approved a 13-week extension (in Virginia, it added on to its 26 weeks of unemployment; the length of time varies by state). As the recession got worse, Congress passed additional expansions. But those expansions are gone as of Saturday. The Congressional Budget Office estimates by not renewing the program, the country will see a savings of $25 billion a year.

Now in Virginia, instead of getting 40 weeks of unemployment insurance, Virginians will go back to getting just 26 weeks, unless Congress decides to revisit extending long-term unemployment benefits when they return to Washington on Friday.

In Virginia an additional 31,800 people are set to lose their unemployment benefits in the first six months of 2014 when they hit the 26-weeks mark, according to Democrats on the U.S. House Ways and Means Committee.

President Obama is pushing to renew the program. Gene Sperling, the director of Obama's National Economic Council, said this week "never before have we abruptly cut off emergency unemployment insurance when we faced this level of long-term unemployment and it would be a blow to these families and our economy."

Sperling noted that Sen. Jack Reed (D-R.I.) and Sen. Dean Heller (R-Nev.) "have put forward bipartisan legislation to extend emergency unemployment insurance for three months which would prevent these 1.3 million workers and their families from losing benefits while giving more time for consideration of further extension through 2014, and Leader (Harry) Reid will bring it to a vote as soon as they return." 

The unemployment rate for Virginia is 5.4 percent. In October in Fairfax County, the rate was 4.1 percent and in Falls Church, 7.1 percent, according to the Bureau of Labor Statistics. The U.S. unemployment figure is 7 percent. Some say it's even higher, with some people giving up entirely on getting a job.

If you live in Northern Virginia and have questions about unemployment insurance in Virginia, you can stop by the Virginia Employment Commission at 5520 Cherokee Ave., Alexandria, VA, 22312-2319 or call (703) 813-1300.

For other assistance, see information here on local food pantries and social services by location in Northern Virginia. You can also call Department of Family Services at (703) 324-7500.

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Lance Brofman January 01, 2014 at 09:39 PM
Unlike food stamp and welfare recipients, many unemployed people (all of which previously held jobs) are Republicans. If the news media shows one person saying: that he had always voted Republican but if the House leadership does not allow a vote on extension of unemployment benefits he will never vote for a Republican again, the Republican will cave as 1.3 million voters could be a critical in the next election. The joke used to be that a conservative is a liberal who has been mugged. The new version will be a Democrat is a Republican who had his unemployment benefits ended. "..It is not just a coincidence that tax cuts for the rich have preceded both the 1929 and 2007 depressions. The Revenue acts of 1926 and 1928 worked exactly as the Republican Congresses that pushed them through promised. The dramatic reductions in taxes on the upper income brackets and estates of the wealthy did indeed result in increased savings and investment. However, overinvestment (by 1929 there were over 600 automobile manufacturing companies in the USA) caused the depression that made the rich, and most everyone else, ultimately much poorer. Since 1969 there has been a tremendous shift in the tax burdens away from the rich and onto the middle class. Corporate income tax receipts, whose incidence falls entirely on the owners of corporations, were 4% of GDP then and are now less than 1%. During that same period, payroll tax rates as percent of GDP have increased dramatically. The overinvestment problem caused by the reduction in taxes on the wealthy is exacerbated by the increased tax burden on the middle class. While overinvestment creates more factories, housing and shopping centers; higher payroll taxes reduces the purchasing power of middle-class consumers.." http://seekingalpha.com/article/1543642


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