Letter to the Hon. Nancy Pelosi, Speaker of the House, and the Hon. Richard Neal, Chair of the House Committee on Ways and Means - Rep. Demings Leads Florida Democrats on Unemployment Assistance Letter

Letter

Dear Speaker Pelosi and Chairman Neal:

We are writing to strongly urge you to include permanent reforms to the unemployment insurance (UI) system in any legislation related to the American Jobs and Families Plans. The experience of our constituents in Florida has painfully demonstrated time and again that additional federal guardrails are needed to ensure a fair and responsive UI program to help struggling unemployed workers.

On June 26, Florida terminated assistance under the Federal Pandemic Unemployment Compensation (FPUC) program, reducing aid to an estimated 840,000 people. This cut in critical aid to struggling families in Florida is especially concerning given the overwhelming weaknesses in our state's regular unemployment insurance system. Before the temporary federal pandemic programs were put into place, unemployment insurance replaced only about 40% of average wages in Florida. Even worse, only 10% of the unemployed received any UI benefits at all in our state, vying for the worst ranking in the entire nation. Furthermore, Florida now provides only 19 weeks of regular unemployment benefits, down from the 26 weeks that was once the norm.

Florida's shortcomings in providing unemployment benefits to those looking for work are glaring, but numerous other states also have weak systems. Nationwide, only about 3 out of 10 unemployed workers receive regular UI, the average replacement rate of prior wages is 44 percent, and a number of other states have cut back on the traditional 26 weeks of regular, state-provided benefits. Additionally, some states are now considering further cuts to regular UI, threatening to further erode a system already failing so many Americans.

Workers of color and women are particularly hurt by the significant weaknesses in the UI system, including barriers to low-wage and part-time workers, as well as to those needing to leave work for compelling family reasons. Recognizing the "long-standing racial and gender inequities embedded in the system," President Biden's budget calls for permanently reforming unemployment insurance, including establishing a federal floor on states' eligibility rules.

Therefore, we strongly urge support for permanent UI reforms that require federal standards on coverage, on benefit adequacy, and on duration. We look forward to working with you toward this important goal.