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GAO-09-942R 1 (2009-07-27)

handle is hein.gao/gaobaanpe0001 and id is 1 raw text is: GA T I IAccountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 July 27, 2009 The Honorable Mitch McConnell Republican Leader United States Senate Subject: Unemployment Insurance Measures Included in the American Recovery and Reinvestment Act of 2009, as of July 2009 Dear Senator McConnell: This letter is in response to your request to provide information on measures in the American Recovery and Reinvestment Act of 2009 (Recovery Act) to augment unemployment compensation.' Tables identifying these measures, along with the most recent unemployment statistics nationally and by state are enclosed. Unemployment has risen sharply in the current recession, with the June 2009 rate reaching 9.5 percent of the labor force nationally; 15 states and the District of Columbia have unemployment rates exceeding 10 percent (see Table 1). The Recovery Act enacted measures that expanded unemployment compensation benefits for individuals and provided additional funding to states to pay and administer these benefits. These measures include an extension of benefits under Extended Unemployment Compensation (EUC) through 2009; Unemployment Insurance (UI) modernization grants to states that expand eligibility according to specific criteria; an increase in weekly benefits of $25; and an exemption of the first $2,400 in unemployment benefits received by individuals in 2009 from taxation (see Table 2). The Department of Labor reports that, as of the week ending July 17, 2009, total payments for extended EUC equaled $5.1 billion and for the increased $25 weekly benefit totaled $4.0 billion (see Table 2). As of July 24, 2009, 28 states and the District of Columbia have been approved for modernization grants totaling $2.2 billion (see Table 3). GAO-09-942R Unemployment Insurance 'Pub. L. No. 111-5, 123 Stat. 115. Page I

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