[Senate Report 107-120]
[From the U.S. Government Publishing Office]
Calendar No. 274
107th Congress Report
SENATE
1st Session 107-120
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DISASTER UNEMPLOYMENT ASSISTANCE
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December 10, 2001.--Ordered to be printed
_______
Mr. Jeffords, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[to accompany S. 1622]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred a bill (S. 1622), to extend the period of availability
of unemployment assistance under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act in the case of
victims of the terrorist attacks of September 11, 2001, having
considered the same, reports favorably thereon and recommends
that the bill do pass.
Background
On September 11, 2001, terrorists attacked the Pentagon and
the World Trade Center. These horrible events marked the first
time since the 1941 attack on Pearl Harbor that the United
States has suffered an attack on domestic soil. The magnitude
and enormity of these attacks are unprecedented in our nation's
history. Thousands of innocent people lost their lives.
Thousands more lost their homes, their businesses, their jobs,
their livelihoods.
In New York, the attack left in its wake a mountain of
debris, damaged buildings and lost jobs. Over the next 2 years,
New York City will lose an estimated $105 billion as a result
of the September 11th attack. The attack damaged or destroyed
nearly 25 million square feet of office space, roughly
equivalent to 20 percent of all the office space in downtown
New York. The attack has caused the loss of 110,000 jobs and
further put at risk 270,000 jobs in the New York City area.
Northern Virginia also will feel the effects of the attack
for years to come. The attack on the Pentagon caused National
Airport to close for 3 weeks. Many sectors of the Northern
Virginia economy are facing significant job cuts due to the
terrorist attack. According to the Washington Post, the attack
has caused the loss of 18,700 jobs. State and local sales tax
revenues have been reduced by $22 million. Travel spending in
the Northern Virginia/Washington DC metro area is down $247
million.
S. 1622 responds to the overwhelming needs of individuals
who lost their employment as a result of the September 11th
attack. The bill would not amend the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (Stafford Act),
but it would extend the period of availability of unemployment
assistance under the Stafford Act from 26 weeks to 52 weeks for
victims of September 11th.
The Federal Emergency Management Agency (FEMA) administers
the disaster unemployment assistance program to provide
unemployment assistance to victims of major disasters. The
program currently provides disaster unemployment assistance to
qualifying individuals for a period not to exceed 26 weeks. The
26-week eligibility period begins on the date of the major
disaster declaration Individuals are eligible for disaster
unemployment assistance only if they are not receiving other
types of unemployment assistance.
The President declared a major disaster in New York on
September 11, 2001, and in Northern Virginia on September 21,
2001.
Section-by-Section Analysis
Section 1. Extension of Unemployment Assistance
Summary
Section 1 extends disaster unemployment assistance
available under the Stafford Act for an additional 26 weeks.
Discussion
In the case of Presidential declaration of a major
disaster, section 410(a) of the Stafford Act gives the
President authority to provide disaster unemployment assistance
to an eligible recipient until that individual finds suitable
employment, but for no longer than 26 weeks after a major
disaster declaration. The President may provide this assistance
only when an individual is not entitled to any other
unemployment compensation (as that term is defined in section
85(b) of the Internal Revenue Code of 1986).
This bill does not propose to amend the Stafford Act, it
extends the availability period of disaster unemployment
assistance for victims of the September 11th attack from 26
weeks to 52 weeks. This bill does not change in any way the
qualifications established by FEMA for the provision of
disaster unemployment assistance under the Stafford Act. The
Committee does not anticipate that FEMA will change the current
regulatory scheme for administration of the disaster
unemployment assistance program beyond offering an additional
26 weeks of assistance to victims of the attack.
Legislative History
Senator Hillary Rodham Clinton introduced S. 1622 on
November 1, 2001. The committee held a legislative hearing to
receive testimony on the proposed legislation on November 1,
2001. The committee reported S. 1622 by voice vote on November
8, 2001.
Hearings
On November 1, 2001, the committee held a legislative
hearing on S. 1622, a bill to extend the period of availability
of unemployment assistance under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act in the case of
victims of the terrorist attacks of September 11, 2001,
receiving testimony from Michael Brown, Deputy Director,
Federal Emergency Management Agency; Joe Moravec, Commissioner,
Public Building Service, General Services Administration; Dr.
David Sampson, Assistant Secretary for Economic Development,
Economic Development Administration, U.S. Department of
Commerce; Richard Meserve, Chairman, Nuclear Regulatory
Commission; Herbert Mitchell, Associate Administrator for
Disaster Assistance, Small Business Administration; and
Marianne L. Horinko, Assistant Administrator. Office of Solid
Waste and Emergency Response, Environmental Protection Agency.
Rollcall Votes
The Committee on Environment and Public Works met to
consider S. 1622 on November 8, 2001 and agreed to report the
bill by voice vote.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee makes evaluation of
the regulatory impact of the reported bill.
The bill does not create any additional regulatory burdens,
nor will it cause any adverse impact on the personal privacy of
individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the committee finds that S. 1622 would
impose no unfunded mandates on local, State, or tribal
governments.
Cost of Legislation
Section 403 of the Congressional Budget and Impoundment
control Act requires that a statement of the cost of the
reported bill, prepared by the Congressional Budget Office, be
included in the report. That statement follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 6, 2001.
Hon. James Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has prepared
the enclosed cost estimate for S. 1622, a bill to extend the
availability of unemployment assistance under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act in the
case of victims of the terrorist attacks of September 11, 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton, who can be reached at 226-2860.
Sincerely,
Dan L. Crippen
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S. 1622, A bill to extend the period of availability of
unemployment assistance under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act in the case of victims of
the terrorist attacks of September 11, 2001, as ordered
reported by the Senate Committee on Environment and Public
Works on November 8, 2001
SUMMARY
S. 1622 would require the Federal Emergency Management
Agency (FEMA) to extend the amount of time from 26 weeks to 52
weeks that victims of the September 11, 2001, terrorist attacks
would be eligible to receive disaster unemployment assistance.
CBO estimates that extending the period of eligibility would
cost the federal government about $4 million over the 2002-2006
period, assuming appropriation of the necessary amounts. S.
1622 would not affect direct spending or receipts, therefore,
pay-as-you-go procedures would not apply.
S. 1622 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on the budgets of State, local, or
tribal governments.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of S. 1622 is shown in the
following table. The costs of this legislation fall within
budget function 450 (community and regional development).
By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
2002 2003 2004 2005 2006
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO
APPROPRIATION
Estimated Authorization Level... 4 0 0 0 0
Estimated Outlays............... 3 1 0 0 0
------------------------------------------------------------------------
BASIS OF ESTIMATE
For this estimate, CBO assumes S. 1622 will be enacted
early in fiscal year 2002 and the necessary funds will be
appropriated. Under current law, victims of disasters are
eligible to receive disaster unemployment assistance from FEMA
for up to 26 weeks, though the average length of time for such
assistance is 13 weeks. FEMA estimates that the total number of
disaster unemployment assistance claims stemming from the
September 11, 2001, terrorist attacks will be about 2,500. CBO
expects that the total number of recipients receiving
assistance would decrease each week by 5 percent over the 52-
week period of eligibility. We estimate that under this bill,
the victims would receive an average rate of $250 a week for an
average of about 20 weeks.
Based on information from FEMA and information about the
past costs of extending federal unemployment compensation, CBO
estimates that extending the period of eligibility for disaster
unemployment benefits would cost about $4 million over the
2002-2006 period, assuming appropriation of the necessary
funds. That is the difference between an estimated cost of
about $8 million for assistance up to 26 weeks (under current
law) and an estimated cost of about $12 million for extended
assistance up to 52 weeks.
Pay-As-You-Go Considerations: None.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
S. 1622 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on the
budgets of State, local, or tribal governments.
Estimate Prepared By: Federal Costs: Julie Middleton; Impact on
State, Local, and Tribal Governments: Leo Lex; Impact on the
Private Sector: Lauren Marks.
Estimate Approved By: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law
Section 12 of rule XXVI of the Standing Rules of the
Senate, provides that reports to the Senate should show changes
in existing law made by the bill as reported. Passage of this
bill will make no changes to existing law.