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Appropriations
Labor-HHS Appropriations Bill Markup
On Friday, July 10, the House Appropriations Labor-HHS Subcommittee marked up the FY 2010 Appropriations Bill. The 302 (b) discretionary allocation for the Labor-HHS Appropriations Bill is $160.7 billion for FY 2010, which is $52 million below the President’s request. This allocation provides a $5.2 billion or 3.3 percent increase over the FY09 level.
The bill provides $13.3 billion for the Department of Labor, an increase of $846 million over 2009, and $23 million below the President’s request. This allocation provides $8.66 billion for the Employment and Training Administration, a $638 million increase over FY09 levels, with $3.8 billion for training and employment services.
Key investments include $1.4 billion for Dislocated Worker training; $135 million for a Career Pathways Innovation Fund, of which at least $65 million will support competitive grants to community colleges and partnerships with local adult education to train nurses, medical technicians and others for skilled jobs in the health industries; $100 million for YouthBuild; $50 million to prepare workers for careers in emerging “green” industries; $50 million for a new research-proven Transitional Jobs employment strategy to help hard-to-employ non-custodial parents and ex-offenders enter the workforce; and $615 million for community service jobs.
The bill also provides for a $498 million increase in Pell Grant funding to maintain the appropriated base of $4,860, along with a mandatory add on of $690 for a total maximum award funding level of $5,550 for FY2010.
To access a chart of the Labor-HHS Subcommittee recommendations click here.
To access a copy of Appropriations Committee Chairman David Obey’s (WI) prepared statement on the Labor-HHS Appropriations Bill markup click here.
House Democrats are reportedly set to unveil their healthcare reform plan today, including the tax increases to pay for it. The Obama Administration and Democratic leaders in the House and Senate have vowed to pass healthcare legislation before the August recess. Lawmakers in both parties agree, however, that final passage will be an uphill struggle.
Jobless Numbers Increase; Trigger Calls for Second Stimulus
The number of laid-off worker filing continuing claims increased by 159,000 last month, hitting a record high of 6.88 million, while new claims for unemployment fell by 52,000—the lowest they have been since January. With the loss of 467,000 jobs in June, the United States now has fewer jobs than it did in May 2000, 9 years ago, making it the first downturn since the Great Depression to eliminate all job growth from the previous business cycle. The unemployment rate hit 9.5 percent last month, the highest it has been in 25 years, and is expected to exceed 10 percent by the end of the year.
Economists are looking to the level of first-time unemployment claims for indications of recovery in the second half of the year, but greater than expected payroll cuts last month signal a prolonged scarcity of jobs, even if economic growth is seen later this year. Recent increases in job losses have triggered calls for more stimulus money. Members of Congress and the White House have stated that they have not ruled out the possibility of a second stimulus, but want to allow time for the first stimulus to take effect before acting on a second.
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