Statements on Introduced Bills and Joint Resolution

Floor Speech

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Mr. REED. Mr. President, with the U.S. economy reeling, millions of families struggling, and COVID-19 cases soaring in states around the country, this is exactly the wrong time to cut off or massively cut back unemployment insurance as Republicans are proposing.

Unemployment insurance is a financial lifeline to tens of millions of Americans. And it also provides a big boost for small businesses . . . and communities. Because in addition to helping those who've lost their jobs, it effectively injects needed spending into local economies. Cars don't run without fuel, and the economy won't run without consumers.

The President failed to listen to public health experts and that hurt public health and the economy. He downplayed the pandemic, derided the science, and tried to force states to rush their re-openings.

Now he is failing to listen to economic experts across the spectrum who widely agree that four months into this crisis, the jobs picture is worsening. Experts are once again warning the President and Republicans now is NOT the time to cut off unemployment insurance.

Today, more than 31 million Americans--roughly one out of five workers--are collecting unemployment and thousands of businesses are shutting their doors. More than 1.4 million workers filed for unemployment for the first time just last week. Those who predicted a quick V shaped recovery . . . who misled Americans that the virus would just disappear on its own were wrong. There will be no economic recovery until we get the virus under control.

Congress needs to end the shortsighted approach and start taking the long view. We need a smarter, coordinated, evidence-based approach that recognizes reality: things are bad. Cutting off UI would make them exponentially worse.

But look: Hope is not lost. We have the tools, the assets, the advantages to turn things around. There are proven, effective measures that we can take, both on the public health front and the economic front. Let's focus on the economic front:

Economist Mark Zandi of Moody's Analytics notes that unemployment benefits are the most effective dollar-for-dollar stimulus to the economy, with each dollar of UI translating into $1.61 of economic activity. Cutting off $600 would slash the weekly income of 20 million households in half or more overnight. In a recent study, Ernie Tedeschi, a former economist at the Department of Treasury, projects that what will follow is a two percent decrease in the nation's gross domestic product and 1.7 million fewer jobs by the end of this year.

This is not surprising. If Senate Republicans let the enhanced pandemic unemployment assistance expire, it could tank consumer spending while increasing business closings that will lead to even more unemployment. It could also further exacerbate this public health crisis by forcing more Americans into desperate situations.

That is why I, along with Senator Michael Bennet and Congressman Don Beyer, have proposed the Worker Relief and Security Act. This legislation would take politics out of the equation and use ``automatic stabilizers'' based on actual unemployment rates to ensure the help goes where it is needed, when it is needed, and expires when it is no longer needed--rather than leaving it up to Congress and an arbitrary date.

And look, it's not just individuals who are struggling. Businesses need help too. That is why I have backed the bipartisan RESTART Act and today I am introducing the Workforce Retention Act, which would strengthen and expand work sharing programs that many businesses are effectively using to keep their workers. This program is a win-win that offers businesses increased flexibility and payroll support, while keeping more Americans attached to their jobs.

Right now, business owners who want to keep their doors open are facing the prospect of having to let go some percentage of their workforce because of circumstances far beyond their control. Businesses that are particularly dependent on foot traffic, such as the hospitality and tourism industries, are only looking at re-opening later this year or early next year. In many cases, businesses are also set to lose out on the considerable expense and time they have put in to hire and train these workers.

With work sharing, struggling companies can reduce hours instead of their workforce and it helps employers save money on rehiring costs, while employees who participate in work sharing keep their jobs and receive a portion of unemployment insurance benefits to make up for lost wages. Especially in this pandemic, work sharing programs would allow businesses to retain their employees, easily putting them back on full-time status once business picks up, and avoid having to lay them off in the first place.

As part of the Middle Class Tax Relief and Job Creation Act, Congress enacted legislation that I authored, the Layoff Prevention Act of 2012, which provided temporary federal financing for 100% of work sharing benefits paid to workers. According to the Department of Labor, work sharing saved approximately 570,000 jobs in the wake of the Great Recession. Multiple studies have found that communities that adopted more robust work-sharing programs weathered the recession with lower unemployment rates.

Mark Zandi estimates that temporary financing of work share offers a very high ``bang for the buck'' of $1.69 . . . making it a critical companion to traditional UI benefits. It's another win-win policy that has been field-tested and demonstrated to work well in more than 20 states across the country. Simply put, work sharing helps more workers, businesses, and communities stay afloat, and positions them for a stronger economic recovery.

The Workforce Retention Act that I am introducing today along with Senators Whitehouse, Merkley, and Van Hollen, enhances the program and encourages states with existing work share laws to utilize them more frequently. It incentivizes states without work sharing laws to stop denying their businesses an easy and effective way to retain employees. This legislation is supported by the National Employment Law Center and the Economic Policy Institute.

It builds off the $100 million initiative included in the CARES Act, stemming from my Layoff Prevention Act of 2020, by extending federal financing for states with permanent and temporary work sharing programs by two years. It would incentivize states to structure their work sharing laws to reduce barriers to entry for companies . . . particularly for small businesses that have been hard hit by this pandemic. Our bill also provides much-needed federal grants to state unemployment agencies to improve implementation and administration.

States would also qualify under a new grant program for meeting certain enrollment incentive benchmarks and increasing the number of work share claims as a percentage of their overall unemployment insurance weekly claims.

This is a cost-effective job preservation program and we need to invest in ensuring it is accessible to help more businesses, preserve more jobs, and save taxpayers billions of dollars in the long run.

Our economy can't afford more of the same mistakes that have deepened this crisis and steepened the economic climb back out. America controls its own destiny, and we have the tools and know-how to succeed. Other nations have fared much better during this crisis because their elected leadership took COVID more seriously. They encouraged people to wear masks. Other heads of state didn't taunt regions into reopening before it was safe to do so. And they invested in unemployment insurance and economic stimulus.

Ending unemployment insurance in the midst of a surging pandemic could make a desperate situation worse for individuals and harm the economy. Being jobless in these uncertain times and relying on unemployment is stressful enough. If Congress cuts benefits off too soon and tries to prematurely push workers into unsafe environments, it will cost families, businesses, and communities alike.

It is beyond the pale that the Administration and Senate Republicans purposely put off action for months. Everyone knew the virus was not going to disappear. It's a perfect example of the Trump view of one set of rules that provides benefits for him, and nothing for everyone else. Incompetence and willful avoidance is not a policy, and it's time for Republicans to stop drawing up new ways to seem like they're helping people and come to the table with solid ideas that actually do something meaningful.

It is my hope that we can proceed in a bipartisan manner on another round of coronavirus legislation. This next relief bill must include extended and enhanced unemployment insurance benefits tied to economic and health conditions, and expanded work sharing, to keep families, businesses, and states solvent through this crisis. I urge my colleagues to join us in supporting these needed initiatives. ______

By Mr. DURBIN (for himself, Ms. Baldwin, and Ms. Smith):

S. 4314. A bill to amend the Internal Revenue Code of 1986 to address the teacher and school leader shortage in early childhood, elementary, and secondary education, and for other purposes; to the Committee on Finance.

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