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Wednesday, October 17, 2001

Chao: Existing programs suitable for those in need




By Derrick DePledge
Enquirer Washington Bureau

        WASHINGTON — The federal government should use existing programs to help workers displaced by the Sept. 11 terrorist attacks rather than experimenting in an emergency, Labor Secretary Elaine Chao said Tuesday.

Chao
Chao
        President Bush has proposed extending unemployment insurance benefits by 13 weeks in states directly affected in the attacks or states where the unemployment rate has increased by 30 percent. The administration also would provide $3 billion in emergency grants so governors could help workers afford health care, child care or job training.

        Job losses of more than 140,000 in the aviation industry and thousands more in the tourism and hospitality industries since the attacks have pushed the economy closer to recession. Lawmakers are weighing an economic-stimulus package to boost the economy but debating whether to focus on tax cuts, benefit programs or federal spending.

        “Workers need help now, not down the road,” Ms. Chao told the House Education and the Workforce Committee. “And the president's plan achieves that by creatively expanding the current programs that the department has, instead of starting from scratch.”

        In the president's proposal, governors would have the flexibility to use some of the $3 billion to pay 75 percent of displaced workers' health care premiums, job training costs, or extend unemployment insurance benefits if the state does not already qualify for an immediate extension because of the attacks.

        Rep. John Boehner, R-Ohio, the committee's chairman, said few areas of the country have been spared from the consequences of Sept. 11. He pointed to layoff announcements by GE Aircraft Engines and Delta Air Lines in Greater Cincinnati.

        “We will do everything in our power to help every worker return to work as quickly as possible — and in the meantime, that they and their families have adequate relief,” Mr. Boehner said. The West Chester Republican has introduced the president's relief proposal in the House.

        Some Democrats have faulted House Republicans for concentrating on corporate tax breaks and a $15 billion bailout for the airline industry before helping displaced workers. Rep. George Miller, D-Calif., said thousands of low-income and part-time workers are suffering because of the economic downturn.

        “These families need help now,” he said.

        Rep. Rob Portman, R-Ohio, the House liaison to the White House, said lawmakers ought to put aside political differences and promote economic growth at a time of crisis. He said no single provision would repair the economy but that tax breaks have the best chance of succeeding.

        “This will not be the magic bullet that will pull us out of what looks like a recession,” the Terrace Park Republican said. “But Congress ought to step up to the plate.”

       



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