(Washington, DC) – Today, Mayor Adrian M. Fenty introduced emergency legislation to increase unemployment benefits and to provide new job training opportunities for unemployed District residents. The new benefits will be funded by the Unemployment Insurance (UI) Trust Fund.

The legislation will add up to 20 additional weeks of unemployment benefits for those who are about to exhaust their maximum number of weeks. The District’s current unemployment rate is 10.9 percent and despite the extra weeks of federal Extended Benefits, thousands of unemployed in the District will begin to run out of unemployment eligibility at the end of August without this action. By filing this as emergency legislation, Mayor Fenty’s proposal will prevent lapses in payments to these unemployed.

“While our economy is struggling, we are putting plans into action that will help District residents suffering during this economic downturn," Fenty said. "By increasing the amount of benefits as well as the length of time our claimants are receiving benefits, we are helping to alleviate some of the burden felt by many households and allow District workers currently receiving unemployment benefits an opportunity to sharpen their skills, learn a new trade, or go back to school, through Pell Grants, as they prepare to reenter the job market.”

In addition, the Administration is proposing a temporary year and a half addition of a dependency allowance of $15 per week per child, not to exceed $50, in order to help families who are struggling to make ends meet as they search for work in this difficult economy.

The Administration’s plan also focuses on new job training opportunities to help workers prepare for their next job, including allowing up to 26 weeks of job training for claimants who have exhausted their regular UI benefits and enroll in education or training programs for high demand occupations. Mayor Fenty will also send information to all unemployed residents about new uses of the Pell Grant to help those who are out of work go back to school.

“There are two very important parts of this reform effort: additional benefits for those who are searching for work in this tough economic time, and education and training opportunities for those who are unemployed,” said Joseph Walsh, director of the DC Department of Employment Services (DOES). “We want to help those who are struggling right now and provide opportunities for all to get the training and education they need to find a job more quickly and earn higher wages.”

While the top high demand job sectors require at least some college or advanced training, under the new training benefit, unemployment claimants will receive the option of training in high demand occupations or growth industries through DOES.

Details of the legislation:

The Unemployment Compensation Additional Benefits Program Emergency Amendment Act:

• Will provide additional unemployment benefits for up to 20 additional weeks for claimants who have exhausted all other benefits sources. 
• This will immediately help those who are receiving extended benefits which will run out beginning at the end of August.

The Unemployment Compensation Administrative Modernization Emergency Amendment Act:

• Proposes a dependency allowance of $15 per week per child, up to a maximum of $50 a week, which will be in place until December 2010.
• UI claimants can enter into a District-approved or Workforce Investment Act (WIA) certified job training program, or new educational opportunity for up to 26 weeks while still receiving unemployment compensation.
• Funding for the job training is provided by existing federal WIA funds.

Federal Pell Grant Notification

• The Fenty Administration plans to notify all unemployment benefits recipients through mail on the eligibility and other relative information on the Federal Pell Grant Scholarships, which provide financial assistance for education and training expenses, or other available financial aid resources. 

As part of the American Recovery and Reinvestment Act (ARRA), Congress passed an Unemployment Insurance (UI) Modernization Act, which encourages states to update their UI policies in order to receive stimulus modernization funds.  With the passage of this emergency legislation, the District is eligible to receive $18 million in Recovery Act/Unemployment Modernization funding from the US Department of Labor.

The legislation will be introduced today during the Council’s legislative session.  The enactment of the legislation, and the additional federal funds received as a result, will also jumpstart efforts to modernize the District’s unemployment tax and benefits IT system.

More information on the new benefits and education and training opportunities can be found on our website.