With the American Recovery and Reinvestment Act (ARRA) provisions set to expire, emergency unemployment benefits will end for millions of Americans. Senate action is required in order to extend the ARRA. Senator Reid has indicated that the Senate will take up the measure next week. With that in mind, the UI Coalition sent a letter to the members of the US Senate requesting that they consider the following:

• Extend the waiver of interest on loans to states to pay unemployment compensation through 2012.

• Waive the FUTA penalties on employers in states borrowing to pay unemployment benefits through 2011.

• Reduce the Federal Unemployment Tax.

• Provide $30 million in additional targeted administrative UI funding in fiscal years 2010 and 2011.

These provisions are designed to reduce the costs of unemployment to employers and enable them to create jobs thus aiding in the country’s economic recovery.

A copy of the letter as well as a more detailed explanation of each provision is attached.