The CBO report estimates State and federal unemployment insurance programs have cost roughly $520 billion since 2008 and the number of workers receiving UI benefits peaked at 14.4 million in 2009. The cost of continuing EUC08 beyond 2012 will be the subject of intense debate in Congress as part of the fiscal cliff negotiations. CBO examined four extension options and estimated the cost of each:
Option 1: Fully extend the current EUC program and temporary
provisions of the EB program for one year ($30 billion);
Option 2: Partially extend the current EUC program by
providing at most 14 extra weeks of benefits for one year ($14 billion);
Option 3: Allow UI recipients to finish receiving up to 14
weeks of EUC benefits, depending on the number of weeks of benefits for which
they will qualify at the end of December 2012 ($4 billion); and
Option 4: Extend the current EB program for one year,
maintaining full federal funding and allowing states to more easily qualify for
the program ($3 billion).
Although EUC08 is set to expire on December 29, 2012, CBO
concludes preserving EUC08 through next year would add 300,000 jobs to the
economy and the gross domestic product would be two-tenths of a percentage
point higher in the fourth quarter of 2013.
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