WASHINGTON, DC – The U.S. Senate today voted 60-37 to advance a measure authored by U.S. Senators Jack Reed (D-RI) and Dean Heller (R-NV) to preserve federal unemployment insurance (UI) for three months and give Congress time to work out a comprehensive solution.  The bipartisan Reed-Heller plan would provide a much needed economic lifeline and retroactive benefits to 1.3 million unemployed Americans, including nearly 5,000 Rhode Islanders, who lost their jobs through no fault of their own and are actively looking for work.

“This is a critical step forward in assisting 1.3 million Americans who lost their extended unemployment benefits on December 28th, and also the millions more that will lose it throughout the course of this year,” said Reed.  “There's still a great deal of work to be done, but we have literally changed this debate.  Just a few weeks ago, there were colleagues who were talking about unemployment insurance as a disservice to the American worker.  Today, we're talking about the vital nature of this program and also the need to extend it.”

The unemployment insurance system is a partnership between the federal government and state governments that provides a temporary weekly benefit to qualified workers who lose their job and are seeking work.  The amount of that benefit is based in part on a worker’s past earnings.  Rhode Island is among 43 states that offer 26 weeks of UI coverage, while 7 states offer fewer weeks.  Each week, Rhode Island distributes about $1.5 million in federal UI assistance, with the average weekly benefit being about $350 per recipient. 

“We're moving forward.  We have to collaborate,” said Reed.  “But today, I think we've given a bit of hope to millions of Americans who are struggling in a difficult economy to find jobs; who are struggling to provide sustenance to their families; to pay the heat bill; to put some gas in the car; and to keep looking for work.  We also understand that this is just providing some of the immediate assistance people need.  The longer term goal is to create the jobs, to build the economy where this type of emergency program is not as necessary as they are today.”

Shortly after the vote, President Obama praised the bipartisan work of Senators Reed and Heller, saying: “Letting unemployment insurance expire for millions of Americans is wrong. Congress should make things right. I'm very appreciative that they're on their way to doing just that, thanks to the bipartisan work of two senators.  You had a Democrat from Rhode Island, Senator Reed, and you had a conservative Republican from Nevada, Senator Heller.  And despite their political differences, they worked together on a plan to extend unemployment insurance at least for three months temporarily while we figure out a longer-term solution.”

A recent study by the Council of Economic Advisers and the U.S. Department of Labor estimates that the failure to renew UI  could cost our economy 240,000 jobs in 2014, including 1,284 in Rhode Island.

The Republican Senators who joined Reed and Heller in advancing the measure, which required 60 votes, included: Kelly Ayotte of New Hampshire; Dan Coats of Indiana; Susan Collins of Maine; Lisa Murkowski of Alaska; and Rob Portman of Ohio.

In order to be approved by the full Senate, the measure will need to clear a second 60-vote hurdle before it can receive a simple up or down vote.