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Economic stimulus package targets HR issues

02/03/2009

Amid tens of billions of dollars for roads and bridges, industry bailouts and job creation, the massive economic stimulus legislation passed by the House of Representatives last week would throw significant funding at a variety of HR-related programs and initiatives.

Employment eligibility verification, health insurance, unemployment benefits and workforce training would all get a boost under the American Recovery and Reinvestment Act of 2009 (H.R. 1), which the Senate received for consideration yesterday.

Employment eligibility

The bill would require organizations that receive federal contracts via the stimulus package to use the government’s E-Verify  electronic employment eligibility verification system. The Obama administration recently rolled back until May 29 a planned mandate for all federal contractors to use E-Verify.

Health insurance

The bill appropriates $30.3 billion to extend Consolidated Omnibus Budget Reconciliation Act (COBRA) health coverage to workers who lose their jobs. Workers age 55 and older who lose their jobs would be eligible for COBRA coverage until they qualify for Medicare or obtain insurance from another employer. The bill would provide funding to cover 65% of COBRA premiums for workers laid off after Sept. 1, 2008.

Health care IT

The legislation proposes $20 billion to computerize health care record-keeping—a major theme of the Obama presidential campaign. Advocates say bringing record-keeping into the 21st century would improve health care delivery and cut health care costs.

Unemployment benefits

The stimulus legislation includes a nine-month extension of a federal program that offers an additional seven weeks of unemployment compensation for certain workers. Last year, Congress extended the program through the end of March. The new bill pushes extension further, through Dec. 31, 2009.

Worker training

The stimulus bill would appropriate $5 billion to the U.S. Department of Labor to expand workforce training programs.

The legislation will likely undergo changes as the Senate debates it over the next week. Passage is considered likely after House and Senate conferees hammer out differences between the two versions of the bill.

House and Senate Democratic leaders have said they want a final bill ready for the president’s signature by Feb. 16.