More than a million Americans who rely on federal unemployment will see their benefits dry up on Saturday.
Via WJLA 7
A bipartisan group of lawmakers has proposed a short-term extension to a 2008 law that extended unemployment benefits to millions of jobless people, but in the absence of that, about 1.3 million people will lose benefits over the weekend.
In addition to the 1.3 million, another 850,000 will lose their state unemployment over the net three months.
Congress extended or expanded federal aid to the long-term unemployed 11 times since the bill was originally passed, but that lifeline wasn't included in the latest budget deal. A two-year agreement was signed by President Barack Obama on Thursday.
The short-term extension will not be considered by the senate until Congress returns to work in January.
Tens of thousands of those who are losing long-term unemployment benefits live in the greater D.C. area, according to the House Ways and Means Committee.
State Cut off Dec. 28 Cut off June 2014
District of Columbia 4,600 6,800
Virginia 9,700 31,900
Maryland 22,900 28,500
The development entails potentially significant implications for the recovering U.S. economy and sets up a tense battle when Congress reconvenes in the new year.
For families dependent on cash assistance, the end of the federal government's "emergency unemployment compensation" will mean some difficult belt-tightening as enrollees lose their average monthly stipend of $1,166.
Jobless rates could drop.
But analysts say the economy may suffer with less money for consumers to spend on everything from clothes to cars. Having let the "emergency" program expire as part of a budget deal, it's unclear if Congress has the appetite to start it anew.
