With the passage of the stimulus bill (American Recovery and Reinvestment Act of 2009), the unemployment insurance (UI) system will get a much-needed injection of funds from the Federal government. The bill provides funds to increase weekly payments, elongate the extended benefits period, and modernize the way that each state administers its unemployment benefits system.
A refresher on the basics of UI
UI is a joint program between the Federal and state governments. The Federal government sets loose guidelines for eligibility, and then each individual state narrows them down and administers the program. The program is almost entirely funded by a payroll tax on employers, but in times of high unemployment (like this one) the Federal government will extend emergency funding.
More money each week
Each state will receive funding to increase weekly benefits by $25 each week for everybody getting unemployment benefits. You don’t need to do anything: this subsidy will automatically be tacked onto your payments unless your state elects not to participate.
Extended benefits
Typically, you can receive benefits for 26 weeks. Last December, the Unemployment Compensation Extension Act of 2008 tacked on an additional twenty weeks due to economic duress. As part of this stimulus bill, the extension becomes 33 weeks. Extended benefits payments are 80 percent of the average weekly amount that you were receiving before you exhausted your regular benefits.
Not everyone will have the full 33 weeks available to them, since it is ultimately decided at the state level. States with unemployment over 6 percent are eligible for funding. In some states, you may need to participate in training programs to qualify. Check out your state page here for more information.
Unemployment modernization
The stimulus bill creates a $7 billion pool that creates incentives for states to make changes to their unemployment administration. In order to qualify, states have noteworthy incentives: they need to extend unemployment eligibility to those who voluntarily quit to escape domestic violence or care for an ailing relative.
For more information on unemployment benefits
Check out the Unemployment Benefits section of TheCanned.com for in-depth information on Federal guidelines and your state’s program!
March 16th, 2009 at 12:10 pm
Hello, I am on my second extended unemployment benefit that will be exhausted the 2nd week of April. Other than the $25.00 extra on my weekly benefits are there any more weeks of unemployment also added on this 2009 stimulus package? I can,t find anything on your website other than the weekly $25.00.
Thank You, Mike Sykes
March 17th, 2009 at 6:21 pm
You will have up to 33 weeks of extended benefits available to you but it is up to your state to decide whether of not you qualify. Check out your state’s page under “unemployment benefits” for more info.