As painful as this economy has been, it just became a lot tougher for millions of jobless Americans living on their unemployment checks.
The Senate failed to pass a bill that would have extended federal unemployment benefits through next year, allowing them to expire November 30. That means two million Americans, many of whom depend on those checks to survive, will be without any source on income this Christmas, and another four million will face the same fate by April.
As for why the Senate refused to pass the bill, Republicans objected that the $56.4 billion price tag was not being offset by other budget cuts so it would not increase the deficit. Neither party could agree on what to cut before the extension deadline.
The state unemployment agencies responsible for distributing state unemployment checks and who deal directly with people receiving them are worried because many of those recipients rely on that income to pay for food and rent. And with the holidays approaching, Nancy Dunphy, New York State's deputy commissioner of labor and employment security told CNN "this is the worst time of year to be running out of benefits."
Federal jobless payments begin when the state-funded coverage expires after 26 weeks. Federal unemployment benefits can last up to 73 weeks and are divided into four tiers of emergency unemployment compensation, which last between six and 20 weeks. This can be followed by up to five months of extended benefits but the jobless must apply each time they move into a new tier.
Unemployed Americans who have run out of state benefits are already blocked from entering the federal system in most states. Those already in a federal emergency benefits system will not be able to move to the next tier after this coming weekend. However, they can continue to collect the benefits available in their current level. So those who just entered a tier could continue receiving benefits but those who are near the end of their tier will see payments end sooner.
Only 26 states even offer federal extended benefits but before last year only eleven agreed to split the cost of the program with the federal government. That changed when the Recovery Act shifted the entire bill to the federal government and 15 more states added the extension.
As for when those in the extended benefits program will see their last checks, depends on where they live. In Michigan, the jobless could get payments through the rest of the year. But the jobless in Nevada see their checks end after December 11.
Regardless of when the jobless stop receiving benefits, if you are unemployed you should check with your state agencies to see whether you should still file claims. That's because it will be easier for states to restart their payments should Congress extend the deadline to file for federal benefits.
