House Passes Unemployment Insurance, Homebuyer Tax Credit Extension

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The House voted by an overwhelming margin to extend unemployment insurance benefits for an additional 14 weeks Thursday.

The measure, which extends unemployment coverage for 14 weeks across the country and adds an additional six weeks for the areas with the highest unemployment, passed by a vote of 403 to 12, with 18 members, equally divided among Democrats and Republicans, not voting.

The $24 billion bill, which passed the Senate 98 to 0 Wednesday after overcoming weeks of GOP procedural delays, now goes to President Barack Obama, who is expected to sign it.

It also extends the $8,000 first-time homebuyer tax credit and expands it to include a $6,500 credit for people who have lived in their current homes for at least five years.

On the floor of the House prior to the vote, Speaker Nancy Pelosi, D-Calif., said the measure would provide much needed help for families across America.

"The legislation offers a lifeline to out-of-work Americans, to the men and women hardest hit by the recession," she said. "It's a smart choice for our nation's economy. Every dollar spent on unemployment benefits generates more than $1.60 in new economic demand."

She added, "It's good for businesses, it's good for workers. … It means more Americans will have access to the support and assistance that they need to get back on their feet, re-enter the workforce, and contribute to our economy and succeed."

Pelosi also praised the extension of the homebuyer tax credit.

"We've seen the positive impact — the steadier foundation in our housing market," she said. "Most significantly, we've watched a new generation of Americans start living out their dream of homeownership and economic security."

House Majority Leader Steny Hoyer, D-Md., said the measure was just one example of how Democrats had been working hard to put America back to work since President Barack Obama's election last year.

"Last month, we saw news that the American economy grew at a rate of 3.5 percent between July and September—the best growth in two years and a reversal of four quarters of decline," he said. "And the Center on Budget and Policy Priorities recently concluded that the Recovery Act kept six million Americans from falling into poverty and reduced the severity of poverty for 33 million Americans."

He added, "Facts like these have combined to convince unbiased observers that the recession inherited from President Bush is over. And yet, that is not the whole picture. For millions of American families struggling with unemployment, the recession is not over until their loved ones get back to work."

Hoyer estimated that the extension of unemployment would help some 2 million Americans in danger of having their benefits expire at the end of the year.

"These were people with stable jobs and commitments based on those stable jobs, such as college payments and mortgages—people who found the ground falling out from under them through no fault of their own," he said. "We owe it to them and their families to help."

He added, "Though we have made progress since the depths of last winter, and the depths of the recession inherited by President Obama and this Congress, there is more work to do."

Senate Majority Leader Harry Reid, D-Nev., also praised the House passage of the measure, though he criticized Senate Republicans for delaying its passage.

"I've repeatedly expressed my disappointment in their narrow-minded political calculations pursued by Senate Republicans," he said. "Their stalling tactics allowed 200,000 additional Americans to lose their unemployment benefits."

He added, "Today, we'll focus on the positive impact of this legislation for out-of-work Americans who don't have time for the political games that Republicans seem determined to play. I look forward to standing with the President when he signs this bill into law."

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