Page 1 GAO-09-942R Unemployment Insurance

United States Government Accountability Office

Washington, DC 20548 

July 27, 2009 

The Honorable Mitch McConnell 

Republican Leader 

United States Senate 

Subject: Unemployment Insurance Measures Included in the American Recovery 

and Reinvestment Act of 2009, as of July 2009 

Dear Senator McConnell: 

This letter is in response to your request to provide information on measures in the 

American Recovery and Reinvestment Act of 2009 (Recovery Act) to augment 

unemployment compensation.1 Tables identifying these measures, along with the 

most recent unemployment statistics nationally and by state are enclosed. 

Unemployment has risen sharply in the current recession, with the June 2009 rate 

reaching 9.5 percent of the labor force nationally; 15 states and the District of 

Columbia have unemployment rates exceeding 10 percent (see Table 1). The 

Recovery Act enacted measures that expanded unemployment compensation benefits 

for individuals and provided additional funding to states to pay and administer these 

benefits. These measures include an extension of benefits under Extended 

Unemployment Compensation (EUC) through 2009; Unemployment Insurance (UI) 

“modernization” grants to states that expand eligibility according to specific criteria; 

an increase in weekly benefits of $25; and an exemption of the first $2,400 in 

unemployment benefits received by individuals in 2009 from taxation (see Table 2). 

The Department of Labor reports that, as of the week ending July 17, 2009, total 

payments for extended EUC equaled $5.1 billion and for the increased $25 weekly 

benefit totaled $4.0 billion (see Table 2). As of July 24, 2009, 28 states and the District 

of Columbia have been approved for modernization grants totaling $2.2 billion (see 

Table 3). 

 

1

 Pub. L. No. 111-5, 123 Stat. 115. 
Table 1: Civilian Unemployment Statistics by State, June 2009 

Percentage of labor force Number of unemployed (thousands) 

June 2009 May 2009 June 2009 May 2009 

AL 10.1 9.8 215.6 208.3 

AK 8.4 8.3 30.4 29.7 

AZ 8.7 8.2 274.2 258.6 

AR 7.2 7.0 98.8 95.0 

CA 11.6 11.6 2146.2 2152.8 

CO 7.6 7.6 204.0 207.0 

CT 8.0 8.0 149.8 150.4 

DE 8.4 8.1 36.9 35.6 

DC 10.9 10.7 35.9 35.2 

FL 10.6 10.3 970.1 953.6 

GA 10.1 9.6 483.4 458.9 

HI 7.4 7.4 47.7 48.0 

ID 8.4 7.8 62.7 58.6 

IL 10.3 10.1 683.3 670.3 

IN 10.7 10.6 343.0 341.9 

IA 6.2 5.7 104.1 95.8 

KS 7.0 7.0 105.8 107.3 

KY 10.9 10.7 226.1 221.3 

LA 6.8 6.6 140.9 135.6 

ME 8.5 8.3 59.9 58.1 

MD 7.3 7.2 215.2 212.4 

MA 8.6 8.2 295.6 282.0 

MI 15.2 14.1 740.1 681.4 

MN 8.4 8.1 249.1 240.8 

MS 9.0 9.7 116.3 127.3 

MO 9.3 9.0 278.3 270.9 

MT 6.4 6.3 31.9 31.5 

NE 5.0 4.8 49.1 47.2 

NV 12.0 11.2 167.4 158.0 

NH 6.8 6.5 50.1 48.5 

NJ 9.2 8.8 420.8 400.0 

NM 6.8 6.5 64.9 62.4 

NY 8.7 8.2 854.2 799.7 

NC 11.0 11.1 502.3 507.0 

ND 4.2 4.3 15.5 15.9 

OH 11.1 10.8 661.7 646.5 

OK 6.3 6.4 112.1 112.6 

OR 12.2 12.2 242.0 243.6 

PA 8.3 8.3 537.0 534.8 

RI 12.4 12.1 70.7 68.4 

SC 12.1 12.0 265.0 263.6 

SD 5.1 5.0 22.6 22.3 

TN 10.8 10.7 328.2 325.3 

Page 2 GAO-09-942R Unemployment Insurance
Percentage of labor force Number of unemployed (thousands) 

June 2009 May 2009 June 2009 May 2009 

TX 7.5 7.1 899.7 843.4 

UT 5.7 5.4 78.1 74.9 

VT 7.1 7.4 25.4 26.5 

VA 7.2 7.1 298.9 297.8 

WA 9.3 9.1 330.8 325.4 

WV 9.2 8.4 72.8 67.0 

WI 9.0 8.9 278.3 276.4 

WY 5.9 5.0 17.2 14.7 

US 9.5 9.4 14729.0 14511.0 

Source: Bureau of Labor Statistics. 

Note: June 2009 data are preliminary. 

Table 2: Unemployment Insurance: Major Recovery Act Provisions 

Measures: • Extend through December 31, 2009 the Extended 

Unemployment Compensation (EUC) program. 

Section 2001, 123 Stat. 436-37. 

• Provide up to $7 billion total in “modernization” 

grants to states whose UI rules contain specific 

provisions that broaden benefit eligibility. Section 

2003, 123 Stat. 439-43. 

• Increase weekly benefits by $25 per week. Section 

2002, 123 Stat. 437-439. 

• Exempt the first $2,400 of unemployment benefits 

received by individuals from income taxes in 2009. 

Section 1007, 123 Stat. 317. 

• Provide $500 million total to states for additional 

administrative and related costs. Section 2003, 123 

Stat. 443. 

Status of distribution of 

this funding: 

Labor reports that, as of the week ending July 17, 2009, 

total payments for extended EUC equaled $5.1 billion; for 

the increased $25 weekly benefit totaled $4.0 billion; and 

(as of July 24), $2.2 billion in modernization payments 

have been distributed to 28 states and the District of 

Columbia. 

Source: Department of Labor, Employment & Training Administration; and Pub. L. No. 111-5, 123 Stat. 115.

Table 3: Unemployment Insurance Modernization Incentive Payments, as of July 17, 2009 

State Amount State Amount 

AK $5,206,411 NV $76,937,412 

AR $59,969,332 NH $10,467,073 

CT $87,811,338 NJ $206,823,364 

DC $9,210,994 NM $13,007,527 

DE $21,868,398 NY $412,742,107 

GA $220,286,144 OH $88,169,529 

HI $10,175,575 OK $75,886,483 

ID $32,260,831 OR $85,574,641 

IL $100,383,562 SD $5,882,545 

Page 3 GAO-09-942R Unemployment Insurance
Page 4 GAO-09-942R Unemployment Insurance

State Amount State Amount 

IA $70,814,387 TN $141,808,031 

KS $68,970,143 VT $4,639,299 

MA $54,227,780 VA $62,817,683 

MI $69,427,524 WA $48,864,609 

MN $130,063,620 WI $44,644,693 

MT $6,508,588

Total $2,225,449,623

Source: Department of Labor, Employment & Training Administration

We obtained the information on these measures included in the Recovery Act from 

the Department of Labor and from the text of the law itself. We did not independently 

verify the accuracy or reliability of this information. In all other respects relevant to 

providing this information, we conducted our work in accordance with all sections of 

GAO’s Quality Assurance Framework that are relevant to our objectives. We 

conducted our work in July 2009. 

- - - - - - - - - - - - - 

As agreed with your office, unless you publicly announce its contents earlier, we plan 

no further distribution until 5 days after the date of this letter. At that time, we will 

send copies of this report to interested congressional committees and the Secretary 

of Labor. Copies will also be available to others upon request and at no cost on GAO’s 

Web site at www.gao.gov. 

Should you or your staff have any questions about this report, please contact me at 

(202) 512-7202 or fagnonic@gao.gov. Contact points for our Offices of Congressional 

Relations and Public Affairs may be found on the last page of this report. Key 

contributors to this report include Charles Jeszeck, Michael Collins, and Mark 

Glickman. 

Sincerely yours, 

Cynthia Fagnoni 

Managing Director, Education, Income, and Workforce Security Issues 

(130947)
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